1. FATF Assessment and Recommendations
2. India’s Current Efforts in Combating Money Laundering
3. Significance of the Precious Metals Sector

The Financial Action Task Force (FATF) has called on India to bolster its regulation of virtual assets amid rising risks of fraud and terrorism. FATF's recent report highlights the need to enhance measures against money laundering and terrorist financing in the country.

FATF Assessment and Recommendations

A joint assessment by regional bodies, including the FATF, points out significant risks associated with domestic illegal activities such as fraud, cyber fraud, corruption, and drug trafficking. While India has made progress in addressing fraud-related money laundering, the report indicates a pressing need to improve responses to human trafficking and to address the backlog of pending cases. The report also underscores serious threats from terrorism, particularly from groups such as ISIL and Al Qaeda.

India’s Current Efforts in Combating Money Laundering

India is actively combatting money laundering through various regulatory measures and frameworks. The FATF highlights both the progress and challenges India faces in this area. While efforts are underway to enhance regulations for politically exposed persons (PEPs) and improve compliance, gaps remain, particularly concerning domestic PEP coverage. Additionally, the implementation of preventative measures in the non-financial sector and virtual asset service providers is still in its early stages.

Significance of the Precious Metals Sector

Prioritizing cash restrictions for dealers in precious metals and stones is also crucial, given the sector’s material significance in the fight against financial crime.

Regional bodies and the FATF continue to monitor India’s progress in improving virtual asset regulations and other critical aspects of combating money laundering and terrorist financing.