India makes significant progress in AML/CFT measures

On 19 September 2024, a joint assessment by FATF, APG, and EAG highlighted that India has achieved a high level of technical compliance with FATF Recommendations and made significant progress in combating illicit finance.  

However, as its economy and financial system grow, further improvements are needed, particularly in ensuring that money laundering and terrorist financing trials are completed, offenders are sanctioned, and a risk-based approach is taken with non-profit organizations. 

The assessment concluded that India’s anti-money laundering and counter-terrorist financing (AML/CFT) framework is delivering positive results, including strong risk understanding, access to beneficial ownership information, and asset confiscation from criminals. Indian authorities effectively utilise financial intelligence and collaborate domestically and internationally. 

India’s main money laundering risks stem from domestic illegal activities, primarily involving fraud (including cyber fraud), corruption, and drug trafficking. While India effectively tackles money laundering related to fraud and forgery in line with its crime risks, it is less proactive with offenses like human trafficking and drug trafficking. Additionally, the country needs to address the backlog of unresolved money laundering cases in the court system. 

Following the assessment, India has been placed in “regular follow-up” status and will report back to the FATF Plenary in three years, as per standard procedures.