Why in the News?

The Financial Action Task Force (FATF) has assessed India as being largely compliant in addressing terror financing. However, the watchdog pointed out a significant gap in the country's efforts namely, the low rate of prosecution for cases related to terrorism financing, which remains a key area for improvement.

About FATF

• Established: 1989
• FATF Secretariat: OECD headquarters in Paris
• FATF President: Is a senior official appointed by the FATF Plenary from among its members for term of 2 years.
• Current FATF President: Elisa de Anda Madrazo from 1^st July 2024 to 30^th June 2026
• It leads global action to tackle money laundering, terrorist and proliferation financing.
• It works to generate the necessary political will to bring about national legislative and regulatory reforms in areas of money laundering, terrorist financing and illegal activities.
• Members: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, ,Greece, Hong Kong (China), Iceland, India, Ireland, Israel, Italy, Japan, Republic of Korea, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Portugal, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Türkiye, the UK and the US.
• (Russia’s membership was suspended on 24th February 2023)
• India and FATF
  • India joined with ‘observer’ status in 2006 and became a full member of FATF in 2010.
  • India is also a member of its regional partners, the Asia Pacific Group (APG) and the Eurasian Group (EAG).