Author: Nicola Sharp 24 February 2023
Nicola Sharp of Rahman Ravelli details the Financial Action Task Force’s planned assessment of India’s money laundering and terrorist financing prevention.
The review is set to begin this year, with an on-site review of India's actions scheduled for November 2023. India's activities are set to be discussed at the FATF Plenary meeting in June 2024.
India last came under investigation by FATF in June 2010. According to the FATF, it has twice postponed its review of India’s AML-CFT regime since 2019.
FATF brings together a global network of 205 jurisdictions that have each committed, at the highest political level, to implementing FATF Recommendations. This network operates via nine FATF-style Regional Bodies (FSRBs).
FATF and FSRBs conduct peer reviews on an ongoing basis to assess how effectively their respective members' AML-CFT measures work in practice, and how well they have implemented the technical requirements of FATF Recommendations.
Mutual evaluations of members’ levels of implementation of FATF Recommendations involve members from different countries assessing another country. The FATF methodology for assessing compliance with FATF Recommendations and the effectiveness of AML-CFT systems sets out the evaluation process.
Assessments focus on two areas: effectiveness and technical compliance.
The emphasis of any assessment is on effectiveness. A country must demonstrate that, in the context of the risks it is exposed to, it has an effective framework to protect the financial system from abuse. The assessment team will look at 11 key areas, or immediate outcomes, to determine the level of effectiveness of a country's efforts.
The assessment also looks at whether a country has met all the technical requirements of each of the 40 FATF Recommendations in its laws, regulations and other legal instruments, in order to combat money laundering, and the financing of terrorism and proliferation.
A mutual evaluation report provides an in-depth description and analysis of a country’s system for preventing criminal abuse of the financial system as well as focused recommendations to the country to further strengthen its system.
Nicola is known for her fraud, civil recovery, arbitration and business crime expertise, her experience of leading the largest financial disputes and multinational investigations and her skills in devising preventative measures and conducting internal investigations for corporates.