| Recommendation 16 • It is part of the Financial Action Task Force’s (FATF) 2012 recommendations. • It specifies the need for financial institutions to provide information not just about the originator of a payment, but also the beneficiary. • Under this recommendation, banks will also have a more explicit obligation to monitor the quality of data in the transactions they receive. |
- The Financial Action Task Force (FATF) is set to release its report on India’s mutual evaluation.
- India is now in the ‘regular follow-up category’, alongside countries like France, Italy, Russia, and the UK.
- The plenary concluded that India has achieved a high level of technical compliance with FATF’s anti-money laundering, counter-terrorism financing, and Counter-proliferation financing standards.
- However, it highlighted the need for addressing delays in prosecutions, enhancing international cooperation using financial intelligence, and depriving criminals of assets.
- The FATF is likely to meet Indian private sector stakeholders.
- ‘Recommendation 16’ (R.16) needed to be updated to ensure that the standards remain technology-neutral and followed the principle of “same activity, same risk, same rules”.
- It aims to help make cross-border payments faster, cheaper, more transparent and inclusive whilst remaining safe and secure; an objective that is part of the G20 Priority Action Plan.
| FATF • The Financial Action Task Force is an inter-governmental body decision-making body. • It was established in 1989 during the G7 Summit in Paris to develop policies against money laundering. • It is a “policy-making body” that works to generate the political will to bring about national legislative and regulatory reforms in money laundering. • It has also started dealing with virtual currencies. The FATF Secretariat is located in Paris. |
Dig Deeper: Read about Gray List and Black Lists of FATF.
