The Financial Action Task Force (FATF), who will be visiting India on November 3 to evaluate anti-money laundering laws and financing of terrorism in the country, the Indian intelligence sources told News18 “we have nothing to worry because our mechanism is very strong”.
The FATF teams constituting members from the UK, Brazil, South Africa, France, Malaysia and Russia will visit India for due diligence this month. They will meet officials of the Reserve Bank of India, Enforcement Directorate and revenue and finance departments.
The sources said under the leadership of Narendra Modi the idea is to “shut down parallel economy and we have done everything very successfully”.
The FATF will also check the global transparency system. Pakistan, which was removed from FATF’s grey list last October, is learnt to have been doing hectic lobbying with FATF investigators to put India under the scanner, according to intelligence sources.
Besides, Myanmar, North Korea and Iran have been blacklisted by FATF, terming them “high-risk jurisdictions”.
According to FATF, those countries, which are put on its black list are high-risk jurisdictions subject to a call for action. Those that are under “increased monitoring” are ‘Grey List’ countries.
For countries under black and grey lists, no financial aid is given to them by the International Monetary Fund, World Bank, Asian Development Bank and European Union. They also face a number of international economic and financial restrictions and sanctions.
On Myanmar, the FATF said the country should continue to work on implementing its action plan to address deficiencies by demonstration an improved understanding of money laundering risks in key areas, demonstration on-site and off-site inspections are risk-based, and ‘Hundi’ operators are registered and supervised.
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