FATF Report Found the Law to Check Money Laundering in India not Satisfactory

The report by the Financial Action Task Force (FATF) stated that money laundering still remains unchecked in India. The laws in India to check money laundering are still not up to the mark. The report elaborated that the main sources of money laundering in India are illegal activities like counterfeiting of Indian currency, fraud, drug trafficking and transnational organised crimes. According to the FATF report, the efficiency of laws meant for curbing money laundering in India like the Narcotic Drugs and Psychotropic Substances Act 1985 and the Unlawful Activities (Prevention) Act could not be measured because of the low number of confiscations under these acts. The number of illegal cash seizures is very low despite the fact that a large number of people moves across India’s borders.

FATF report also pointed out that India has not undertaken a serious review of its Non Profit Organisations Sector as per the requirement of FATF standards.