FATF urges India to speed up prosecutions in financial fraud cases
1. India "moderately" effective on its parameter of money laundering investigation, says global watchdog
**NEW DELHI:** The global anti-money laundering watchdog, the Financial Action Task Force (FATF), urged India on Thursday to accelerate its prosecutions in financial fraud cases.
The 40-member FATF, established in 1989, rated India as "moderately" effective in the area of "money laundering investigation and prosecution" in a recent report, while indicating that the country was compliant in most other areas.
The task force sets international standards for national authorities working to combat illicit funds generated through drug trafficking, illegal arms trade, cyber fraud, and other serious crimes.
India joined FATF in 2010. In its assessment, the task force noted that India was "compliant" or "largely compliant" on 37 out of 40 evaluated parameters.
The report highlighted that the number of money laundering convictions in India over the past five years has been affected by a series of constitutional challenges and an overwhelmed court system, which has left many cases pending for years.
The Enforcement Directorate, India's anti-money laundering agency, reported seizing assets worth €9.3 billion ($10.4 billion) from suspected financial criminals in the last five years; however, confiscations resulting from convictions totaled less than $5 million.
"It is critical for India to address these issues, considering that accused individuals are awaiting trial and prosecutions are unresolved," the report stated.
The FATF identified three areas of partial compliance, including the scrutiny of political figures' sources of wealth, oversight of non-profit organizations, and monitoring of non-financial businesses and professionals.
The watchdog also pointed out that India faces financing threats from groups operating in the Indian Illegally Occupied Jammu and Kashmir (IIOJK) region, as well as money laundering activities linked to corruption, drug trafficking, and cyber crime.
The statement emphasized the need for India to focus on concluding prosecutions and properly sanctioning those involved in financing illegal activities.
