FATF Urges India to Intensify Efforts in Financial Fraud Prosecutions

The Financial Action Task Force (FATF) has called on India to expedite the prosecution of financial fraud cases. India has been rated 'moderately' effective in money laundering investigations and prosecutions. The country is mainly compliant with most FATF standards but faces significant challenges, including slow court processes.

The global anti-money laundering watchdog, the Financial Action Task Force (FATF), has urged India to accelerate its efforts in prosecuting financial fraud cases. The FATF, which consists of 40 members and was established in 1989, rated India as 'moderately' effective in the area of money laundering investigations and prosecutions, according to a report released on Thursday. Despite India being compliant in most areas, the report highlights that the country's prosecution rate needs significant improvement.

The report also called on India to implement strict regulations on cash transactions involving precious metals and stones, which pose risks to effective monitoring. The task force sets international standards for authorities cracking down on illicit funds linked to serious crimes, such as drug trafficking and cyber fraud. India, which became a member of the FATF in 2010, was found compliant or largely compliant on 37 out of 40 evaluated parameters.

The number of money laundering convictions in India has been hindered by constitutional challenges and a saturated court system. Addressing this, a finance ministry official reported that the government is working to speed up prosecution processes by introducing special courts and more prosecutors. Recent measures have improved India's ratings, but the report says India needs to finalize prosecutions of accused persons, particularly in money laundering and terrorist financing cases, to meet FATF standards.

(With inputs from agencies.)