A report by the global financial watchdog has shed light on the alleged collection of funds by a violent extremist group in India through organized networks. This revelation came to the forefront during a hearing of the Financial Action Task Force (FATF), where India’s involvement in various illicit activities was extensively discussed.
FATF had conducted its last India review in June 2010 and after 13 years it has now started to have its India review on November 3, 2023.
In response to the report forwarded by by the Global NPO Coalition on FATF, the FATF has dispatched a team to India to conduct a thorough investigation into the reported illegal and inhumane practices.
FATF’s Mutual Evaluation Review (MER) is an assessment of a country’s measures to combat money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
The accusations against India include claims and evidence of significant financial support provided by the Indian Government to terrorist organizations and India’s involvement in various terrorist activities worldwide.
The 46-page led report alleges that Indian committed gross financial anomalies are subject to FATF investigation. India is alleged of terror financing approximately $ 674.9 during the period (2009-2018).
India ranks fourth on the global list of informal economies. Informal economic accounts are believed to account for a substantial portion of India’s GDP, with more than $4.2 trillion in the country’s reserves acquired through illegal means, according to the sources.
Recent instances of money laundering include 228.42 billion Indian rupees laundered through the ABG Shipyard Bank fraud and $2 billion in the Punjab National Bank fraud.
In 2010, the MER specifically noted that India had no comprehensive assessment of its financial institutions. In addition, the MER had also recommended India undertake a detailed risk assessment of the Non Profit Organsation (NPO) sector for terrorist financing. Even 13 years after the recommendation, as per the findings, India has not made public whether or not it has carried out any work to identify such risks in the NPO sector.
Experts argue that a comprehensive investigation into India’s criminal and terrorist activities is crucial for global peace and stability. The FATF is expected to press India for answers regarding these allegations.
