Black Money Fight: India Now Compliant With Global Standards


"At its June, 2013 Plenary meeting, the FATF decided that India had reached a satisfactory level of compliance with all of the core and key Recommendations and could be removed from the regular follow-up process," the international body said.

India became a member of FATF in 2010, the same year when it was placed under the regular follow-up process for its compliance to various global standards.

Since then, India submitted seven follow-up reports to FATF regarding the progress made in its regulatory framework.

In February, while submitting its seventh such report, it also said it would report to the FATF Plenary again in June, 2013 regarding additional steps taken by it to remove the deficiencies to get it removed from the regular follow-up.

FATF said all the financial sector regulators in the country have amended their inspection procedures to give much greater emphasis to AML/CFT in the routine examination programme.

Besides, AML/CFT compliance monitoring has been introduced for the first time for India Post's financial services business and the inspection programme commenced in April, 2011.

"With respect to the suspicious transactions reporting regime, the Financial Intelligence Unit (FIU) has further enhanced its outreach programme to provide guidance to the financial sector on their reporting obligations, and has engaged in extensive compliance monitoring.

"The result has been a significant increase in the number of STRs filed both with respect to money laundering and terror financing, without any evidence that this constitutes defensive reporting.

Approximately two-thirds of the STRs received," it added.

Besides, various designated non-financial businesses and professions (DNFBPs) have been brought within the scope of Prevention of Money Laundering Act (PMLA), such as casinos; real estate agents, sub-registrars in charge of registering property; dealers in precious metals/stones; dealers in high-value goods; and safe deposit keepers.

"No immediate action is currently planned with respect to lawyers and accountants, who the authorities consider to pose a low risk for money laundering on the basis of two risk assessments that have been undertaken.

"However, the amendments to the PMLA contain a provision that will allow additional DNFBPs under the PMLA at a later stage," FATF said.

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Source: PTI