FATF Applauds India’s Anti-Money Laundering Efforts, But Warns of Gaps in Key Sectors

India has made significant strides in combating money laundering and terrorist financing, receiving high praise from the Financial Action Task Force (FATF). A joint assessment by the FATF, Asia-Pacific Group (APG), and Eurasian Group (EAG) commended India for strong technical compliance with FATF standards. However, areas like the non-financial sector and virtual asset providers require further regulation. The FATF emphasized the need for a risk-based approach to safeguard non-profits from misuse and to resolve delays in financial crime prosecutions. While progress is evident, India will remain under review and provide an update in three years.