Today, on 16th July, we honor the incredible work of the Financial Action Task Force (FATF), the global watchdog dedicated to combating money laundering, terrorist financing, and proliferation financing. As a 40-member body, the FATF sets international standards that empower national authorities to effectively target illicit funds connected to drug trafficking, the illicit arms trade, cyber fraud, and other serious crimes.
The FATF’s rigorous research on money laundering and terrorism financing, along with its promotion of global standards, ensures that countries are well-equipped to mitigate these risks. With over 200 countries and jurisdictions committed to implementing FATF’s Standards, the coordinated global response against organized crime, corruption, and terrorism is stronger than ever.
The FATF Plenary, its decision-making body, meets three times a year to hold countries accountable for compliance with these Standards. Countries that fail to comply may be designated as Jurisdictions under Increased Monitoring or High-Risk Jurisdictions, commonly known as the “grey and black lists.”
In alignment with FATF’s recommendations, India enacted the Prevention of Money Laundering Law, 2002 (PMLA), effective from July 1, 2005. The Directorate of Enforcement (ED) is entrusted with the responsibility of executing the provisions of PMLA. As a proud member of FATF since 2010, India joins over 200 countries and jurisdictions in the commitment to uphold FATF’s standards.
At Regstreet Law Advisors, we are dedicated to supporting the FATF’s mission by providing expert legal guidance to ensure compliance with these vital international standards. Together, we can contribute to a safer and more transparent global financial system.
The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA), and the International Financial Services Centres Authority (IFSCA) periodically issue circulars to enhance the monitoring of corporate entities or structures, either registered or seeking registration as intermediaries in India, originating from countries designated as high-risk by the Financial Action Task Force (FATF). For monitoring of Foreign Portfolio Investments (FPIs) in India, this has been a constant requirement.
