Last month, India was admitted as the 34th member of The Financial Action Task Force (FATF). The FATF is an inter-governmental organisation founded in 1989 by the G7 concerned with developing policies to combat money laundering and terrorist financing.
The FATF has identified fund transfers from foreign Non Profit Organisations (NPOs), counterfeiting of currency, drug trafficking and extortion as "major sources for terrorist financing" in India.
Most NPOs (what we generally call NGOs) in India are subject to limited or no monitoring and supervision.
Several laws have been formulated in recent years, to monitor and counter terror funds and money laundering. However, there have been no money laundering convictions under these laws till date.
The FATF report commented upon the misplaced confidence of Indian officials regarding the low risk of NPOs being used as conduits for terrorist financing.
Misplaced confidence or wilful blindness?
Uncertainty
3 months ago
