India faces 'disparate' terror threats from ISIS, Al Qaeda: FATF
Global anti-money laundering and terror financing body, the Financial Action Task Force (FATF), has warned that India is facing a "disparate" range of terror threats, most notably from Islamic State (ISIS) and Al Qaeda-linked groups active in Jammu and Kashmir. In its report, the Paris-based watchdog also pointed out that the main sources of money laundering in India stem from illegal activities committed within the country.
FATF rates India's anti-money laundering efforts
The FATF report rated India as "moderately" effective in its efforts to investigate and prosecute money laundering. However, it noted that convictions over the past five years have been hampered by constitutional challenges and a burdened court system. The watchdog stated, "India's courts face huge backlogs, leaving many cases pending for years." It emphasized the need for India to address these issues promptly.
FATF acknowledges India's anti-money laundering system
The report also acknowledged that the Enforcement Directorate in India has seized assets worth €9.3 billion ($10.4 billion) from suspected financial criminals over the past five years. But confiscations following convictions amounted to less than $5 million. The FATF recognized India's effective implementation of an anti-money laundering (AML) and combating financing of terror (CFT) system but called for "major improvements" in prosecuting such cases.
FATF's 1st review of India since 2010
The 368-page report, adopted at FATF's June plenary, is the first review of India's anti-money laundering and terror financing efforts since 2010. Following an on-site visit last November, India has been placed in the "regular follow-up" category alongside only four other G20 nations. The next evaluation of India is slated for 2031.
