look news india
New Delhi: The Financial Action Task Force (FATF), the global watchdog to curb money laundering, has said that India has achieved a high level of technical compliance with its guidelines. But it should do more to implement preventive measures and strengthen supervision in some non-financial sectors.
In a brief statement, the task force placed India in the “regular monitoring” category and said it needs to take steps for speedy trial of cases related to money laundering and terror financing.
India's performance in the Task Force's assessment is extremely beneficial for our fast-growing economy as it reflects the overall stability and integrity of our financial system, the Union Finance Ministry said in a statement.
Although the task force is not backed by any law, global investors value its findings. The task force has said this about India in its assessment report. The report assesses the effectiveness of measures taken by India to deal with issues such as money laundering and terrorist financing.
The Finance Ministry believes that a good rating will help India improve its access to global financial markets and institutions. This will also increase investors' confidence in India.
In the fourth round of the task force assessment, 17 G20 countries have been assessed, out of which four countries, including India, have been placed in the 'regular follow-up' category. While other countries of the group have been placed in the 'additional follow-up' category.
The task force has said that India needs to strengthen monitoring and enforcement of preventive measures in certain non-financial sectors. It acknowledged India's efforts to reduce threats posed by money laundering and terrorism financing, including by moving from a cash-based economy to a digital economy.