India recognises need to streamline trials in terror financing, money laundering cases: Official

Of the recommendations made by FATF, fast tracking trials in terror financing and money laundering cases is important. Rest of the recommendations are ancillary in nature, the official said.

New Delhi: India recognises the need to streamline trial process in terror financing and money laundering cases and is taking steps to improve it, a senior official said on Thursday.

Finance ministry Additional Secretary (Revenue) Vivek Agarwal said global crime watchdog FATF has given high rating to India on parameters, including financial intelligence, anti money laundering and terror financing risks, as well as disclosure of beneficial ownership.

Of the recommendations made by FATF, fast tracking trials in terror financing and money laundering cases is important. Rest of the recommendations are ancillary in nature, Agarwal said.

The Financial Action Task Force (FATF) on Thursday released India mutual evaluation report on combating terror financing and money laundering.

The report said that India has implemented an effective anti-money laundering and combating terror financing system, but major improvements are needed to strengthen prosecution in money-laundering, terror financing cases.

"We have passed the test with distinction," Agarwal said, adding since India is in regular follow up as per FATF, the country may report risk assessment after three year.

"But there is no compulsion on us," Agarwal said.

On possibility of terror financing abuse by not-for-profit organisations (NPO), Agarwal said FATF has said that preventive measures should be taken to check terror financing.

The income tax department has used multiple data points to identify "at risk" NPOs and there is ongoing engagement with NPOs to sensitise them so that they are not used as a medium for financing terror, Agarwal said.

"India has no low rating (by FATF) on any parameter... it is either high rating or medium rating," Agarwal added. PTI JD CS HVA HVA