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The FATF report recommends that India reduce the backlog of money laundering trials by enhancing the court system's capacity and strengthening the Enforcement Directorate (ED).
Major changes to address delays relating to the prosecution of terror financing cases have also been suggested
The FATF report observed that India faces serious terrorism and terror financing threats, including related to Islamic State or al Qaeda
Financial Action Task Force (FATF)
FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris.
Initially, its objective was to examine and develop measures to combat money laundering
After the 9/11 attacks on the US, the FATF in 2001 expanded its mandate to incorporate efforts to combat terrorist financing
In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).
In April 1990, FATF issued a report containing a set of Forty Recommendations
In 2004, FATF published a Ninth Special Recommendations, (40+9 Recommendations)
Over 200 jurisdictions around the world have committed to the FATF Recommendations through the global network of nine FATF-Style Regional Bodies (FSRBs) and FATF memberships
The FATF Plenary is the decision making body of the FATF
India -‘observer’ status in 2006 and full member of FATF in 2010
There are currently 40 members of the FATF; 38 jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission)
Some important organisations that have observer status : IMF, ADB, World Bank, Interpol etc.
The FATF President is a senior official appointed by the FATF Plenary from among its members
The term of the President begins on 1 July and ends on 30 June two years after assuming office
The FATF Secretariat is located at the OECD headquarters in Paris
The FATF Plenary meets tri-annually - in February, June and October, to take stock of “Mutual Evaluation Reports” (MERs) of the countries it reviews.
If a country appears to have major deficiencies in its Anti-Money Laundering/Combating the Financing of Terrorism regime, it is put on a list of “jurisdictions under increased monitoring” - “grey list”
If it fails to address FATF concerns, it is put on a “high-risk jurisdictions” list - “black list”
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