FATF Praises India’s Efforts in Strengthening Virtual Asset Regulation
India has received recognition from the Financial Action Task Force (FATF) for its advancements in addressing illicit finance, money laundering, and terrorist financing. While the FATF praised India’s high level of technical compliance with its standards, a joint assessment with regional bodies identified areas that still require improvement, particularly in regulating the non-financial sector and virtual asset providers. The FATF emphasized the need for a risk-based approach to safeguard non-profit organizations and to address delays in financial crime prosecutions. India’s efforts in combating financial crimes were commended, but the report underscored the importance of further developments to keep pace with the expanding economy and financial system. The FATF specifically highlighted the early stages of implementation for preventative measures by the non-financial sector and virtual asset service providers. The need for improved implementation of cash restrictions by dealers in precious metals and stones was also emphasized due to the sector’s materiality. Despite these areas for progress, India’s financial authorities received praise for their coordination and international cooperation. As per the regular follow-up procedures, India will provide a report to the FATF Plenary in three years. Your thoughts on FATF’s assessment of India’s financial crime measures and the call for more progress in key sectors are welcome in the comments section below.