India
FATF flags slow terrorist financing, money laundering processes | India News – Times of India
NEW DELHI: The slow pace of litigation in cases of money laundering And terrorist financing remains a concern for the Financial Action Task Force (FATF) was scheduled to release its assessment report on India on September 19. After a recent assessment, the Paris-based intergovernmental body had put New Delhi on its list for “regular assessments.”
While ED investigates money laundering and terrorist financing (ML&TF) and the functioning of its reporting mechanisms such as Financial Intelligence Unit and banks on suspicious transactions is appreciated by the global government, anti-money laundering watchdog, but the FATF has flagged long-running legal cases as a concern.
Out of the 11 parameters, FATF has rated India’s performance on six compliance issues while New Delhi needs to improve on five others. The parameters include scope of ML&TF offence, confiscation of proceeds of crime, due diligence of customers and records, suspicious transaction reporting and compliance, measures to be taken in relation to countries that fail to comply or fail to comply adequately with FATF recommendations, mutual legal assistance and extradition, transparency of the judicial system and powers of competent authorities.
India was upgraded to a “regular follow-up” category, where only four other G20 countries, including the UK, France, Italy and Russia, are placed. Even the US, Japan and China are on the “enhanced follow-up” list, which requires reporting every three months. India’s latest upgrade does not require a review until after three years.
With regard to implementation of the anti-ML&TF regime as mandated by FATF, an ED report revealed that in the last 10 years, the agency had conducted 7,300 searches, arrested 755 suspects and seized assets worth over Rs 1.2 lakh crore. It seized assets worth over Rs 15,700 crore out of total seizures during this period and returned over Rs 16,000 crore to banks and other victims after disposing of assets, all in the last few years.
More than 40 extradition requests Charges have been filed by the agency against economic offenders who fled the country. 24 warnings have been issued and four suspects have been extradited and arrested here, including the two main suspects in the AgustaWestland money laundering case.
But what is worrying, and also raised by FATF, is the delayed trials in money laundering and terrorist financing cases, which have resulted in very few convictions. In the past decade, ED has registered over 5,000 ML&TF cases, but has been able to complete investigations in only about 1,300 cases in which it has filed charge sheets. Even after filing charge sheets, trials have not progressed much in many cases, resulting in less than 50 convictions so far.
However, the FATF has reviewed India’s performance in the field of international cooperation with regard to the provision of investigative support to foreign countries in cases of terrorist financing and money laundering.
While ED investigates money laundering and terrorist financing (ML&TF) and the functioning of its reporting mechanisms such as Financial Intelligence Unit and banks on suspicious transactions is appreciated by the global government, anti-money laundering watchdog, but the FATF has flagged long-running legal cases as a concern.
Out of the 11 parameters, FATF has rated India’s performance on six compliance issues while New Delhi needs to improve on five others. The parameters include scope of ML&TF offence, confiscation of proceeds of crime, due diligence of customers and records, suspicious transaction reporting and compliance, measures to be taken in relation to countries that fail to comply or fail to comply adequately with FATF recommendations, mutual legal assistance and extradition, transparency of the judicial system and powers of competent authorities.
India was upgraded to a “regular follow-up” category, where only four other G20 countries, including the UK, France, Italy and Russia, are placed. Even the US, Japan and China are on the “enhanced follow-up” list, which requires reporting every three months. India’s latest upgrade does not require a review until after three years.
With regard to implementation of the anti-ML&TF regime as mandated by FATF, an ED report revealed that in the last 10 years, the agency had conducted 7,300 searches, arrested 755 suspects and seized assets worth over Rs 1.2 lakh crore. It seized assets worth over Rs 15,700 crore out of total seizures during this period and returned over Rs 16,000 crore to banks and other victims after disposing of assets, all in the last few years.
More than 40 extradition requests Charges have been filed by the agency against economic offenders who fled the country. 24 warnings have been issued and four suspects have been extradited and arrested here, including the two main suspects in the AgustaWestland money laundering case.
But what is worrying, and also raised by FATF, is the delayed trials in money laundering and terrorist financing cases, which have resulted in very few convictions. In the past decade, ED has registered over 5,000 ML&TF cases, but has been able to complete investigations in only about 1,300 cases in which it has filed charge sheets. Even after filing charge sheets, trials have not progressed much in many cases, resulting in less than 50 convictions so far.
However, the FATF has reviewed India’s performance in the field of international cooperation with regard to the provision of investigative support to foreign countries in cases of terrorist financing and money laundering.
