India

Member since 2010

Since the assessment of the effectiveness of Australia's measures to combat money laundering and terrorist financing, the country has been in an enhanced follow-up process.  The country reported back to the FATF in 2018 on the actions it had taken to strengthen its AML/CFT framework.  As a result of this report, the FATF rerated the country on  7 of the 40 Recommendations.  

Today, the country is compliant with 12 Recommendations, largely compliant with another 12 Recommendations, but remains partially compliant with 10 Recommendations and non-compliant with 10. 

India Mutual Evaluation 2024

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    Mutual Evaluation of India The Financial Action Task Force (FATF) and the Asian/Pacific Group on Money Laundering (APG) have jointly conducted an assessment of the implementation of anti-money laundering and counter-terrorist financing (AML/CFT standards in India.
Head of delegation

Lead Ministry/Authority in the FATF Delegation

Ministry of Finance: Department of Economic Affairs

Also member of

India Mutual Evaluation 2024

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
C
R.12 - Politically exposed persons
PC
R.13 - Correspondent banking
C
R.14 - Money or value transfer services
LC
R.15 - New technologies
LC
R.16 - Wire transfers
C
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
LC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
PC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
LC
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
C
R.34 - Guidance and feedback
LC
R.35- Sanctions
LC
R.36 - International instruments
C
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
C
R.40 - Other forms of international cooperation
LC

In 2015, the FATF and APG assessed the effectiveness of Australia's measures to combat money laundering and their compliance with FATF Recommendation.  The report concluded that Australia has a mature regime for combating money laundering and terrorist financing, but that certain key areas remain unadddressed. 

The Mutual Evaluation Report of Australia, recognised that Australia has a good understanding of its money laundering risks, coordinates domestically to address these risks, and has highly effective mechanisms for international cooperation. However, the authorities focus more on the disruption of predicate crimes, rather than on the laundering of the proceeds of these crimes and their confiscation. Therefore, while the report recognises that Australia develops good quality financial intelligence which it shares with law enforcement bodies and other authorities, the report concludes that this information should lead to more ML/TF investigations. 

“Australia has made sound progress in implementing the FATF international standards for combating money laundering and terrorism financing since its last evaluation in 2005. While the FATF recognises the positive improvements made by the Australian government, we seek to encourage further actions in a number of areas highlighted in this report", said FATF Vice President, Je-Yoon Shin.

Following this mutual evaluation, Australia is in an enhanced follow-up process and must report back regularly about the progress it has made in addressing the techical compliance deficiencies and may rerate the country to reflect this progress.   However, this follow-up process does not focus on effectiveness. The effectiveness of Australia's actions to combat money laundering and terrorist financing will be assessed in the 5th round of mutual evaluations.