Covid pushes FATF review of India’s measures to 2021

New Delhi, July 26

The much-awaited Financial Action Task Force (FATF) mutual evaluation of India’s anti-money laundering regime and legal measures framed to check financial crimes, scheduled for this year, has been postponed till early next year in view of the coronavirus pandemic, officials said.

They said the on-site review to be conducted by experts of the global body was scheduled to begin in September-October, but the FATF secretariat in Paris has conveyed to India that the review is being tentatively pushed to January-February next year.

The FATF is a global money laundering and terrorist financing watchdog that sets international standards to prevent illegal activities in the economic and financial channels of a country and its inter-connected linkages across the world.

It conducts “peer reviews of each member on an ongoing basis to assess levels of implementation of the FATF recommendations and provides an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system”.

The review of India’s anti-money laundering and terrorist financing regime was scheduled for this year as part of a regular review cycle after 10 years. The last such review was done in June 2010, a senior officer in an anti-money laundering agency said.

The FATF, post this review, had said in 2013 that “India had made significant progress in addressing deficiencies identified in its mutual evaluation report and the FATF decided that the country should be removed from the regular follow-up process”.

India has set up a joint working group comprising 22 central investigation, intelligence gathering and regulatory agencies to make presentations and brief the FATF experts, drawn from various countries, this time.

Some of the prominent agencies in this grouping supervised by the Department of Revenue under the Finance Ministry include the CBI, ED, Income Tax Department, Directorate of Revenue Intelligence, Financial Intelligence Unit (FIU), Customs, market regulator SEBI, banking regulator RBI and insurance regulator IRDAI.

The Union Government had also deputed Rahul Navin, a 1993-batch Indian Revenue Service officer of the Income Tax Department, to work as an officer on special duty (OSD) with the Enforcement Directorate (ED) to take these processes forward.

The ED is the nodal agency to undertake investigations under the Prevention of Money Laundering Act (PMLA) in the country.

A senior Union Finance Ministry official said all preparations to brief the FATF reviewing group were nearing completion when the Covid-19 outbreak happened. “We have been informed by the FATF that it has postponed the mutual evaluation of many jurisdictions scheduled this year, including that of India, due to the ongoing Covid-19 restrictions. It is expected that the new dates will be for early next year,” the officer said.— PTI

Last evaluation was done in June 2010

• The on-site review was scheduled to begin in September-October, but the FATF secretariat in Paris has conveyed to India that the review is being pushed to January-February 2021
• The FATF is a global money laundering and terrorist financing watchdog that sets international standards to prevent illegal activities in economic and financial channels of a country
• The review was scheduled for this year as part of a regular review cycle after 10 years. The last such review was done in June 2010

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