NEW DELHI: The slow pace of trial in cases of money laundering and terror financing remains a concern with Financial Action Task Force (FATF) scheduled to release its review report on India on Sept 19. After a recent evaluation, the Paris-based intergovernmental body had placed New Delhi in the ‘regular evaluation’ list.
Though ED probes into money laundering and terror financing (ML&TF) & working of its reporting mechanism such as Financial Intelligence Unit and banks on suspicious transactions are appreciated by global anti-money laundering watchdog, but long pending cases in courts have been raised by the FATF as a matter of concern.
Of 11 parameters, FATF has appreciated India’s performance on six compliance issues while New Delhi needs to improve on five others. The parameters include scope of criminal offence of ML&TF, confiscation of proceeds of crime, customer due diligence and record-keeping, reporting of suspicious transactions and compliance, measures to be taken with respect to countries that do not or insufficiently comply with FATF recommendations, mutual legal assistance and extradition, transparency of legal system and powers of competent authorities.
India was upgraded to a ‘regular follow up’ category in which only four other G20 countries are placed, including the UK, France, Italy and Russia. Even the US, Japan and China are in the ‘enhanced follow up’ list, which mandates reporting every three months. India’s latest upgrade will need a review only after three years.
With regard to implementation of anti-ML&TF regime as required by FATF, a report from ED revealed the agency had in last 10 years conducted 7,300 searches, arrested 755 accused and attached assets worth over Rs 1.2 lakh crore. It confiscated assets worth over Rs 15,700 crore from total attachments during this period and restituted over Rs 16,000 crore to banks and other victims after disposal of assets, all in the last few years.
Over 40 extradition requests were filed by the agency against economic offenders who have fled the country, 24 red corner notices issued and four accused extradited and arrested here, including the two prime accused in the AgustaWestland money laundering case.
But what is of concern, and also raised by FATF, is delayed trials in money laundering and terror financing cases, leading to very few convictions. In the last decade, ED has registered over 5,000 cases of ML&TF, but it has been able to complete investigations only in about 1,300 cases where it has filed chargesheets. Even after filing of chargesheets, the trials have not progressed much in many cases leading to less than 50 convictions so far.
FATF has, however, appreciated India’s performance in international cooperation with regard to providing investigation support to foreign countries in cases of terror financing and money laundering.
Though ED probes into money laundering and terror financing (ML&TF) & working of its reporting mechanism such as Financial Intelligence Unit and banks on suspicious transactions are appreciated by global anti-money laundering watchdog, but long pending cases in courts have been raised by the FATF as a matter of concern.
Of 11 parameters, FATF has appreciated India’s performance on six compliance issues while New Delhi needs to improve on five others. The parameters include scope of criminal offence of ML&TF, confiscation of proceeds of crime, customer due diligence and record-keeping, reporting of suspicious transactions and compliance, measures to be taken with respect to countries that do not or insufficiently comply with FATF recommendations, mutual legal assistance and extradition, transparency of legal system and powers of competent authorities.
India was upgraded to a ‘regular follow up’ category in which only four other G20 countries are placed, including the UK, France, Italy and Russia. Even the US, Japan and China are in the ‘enhanced follow up’ list, which mandates reporting every three months. India’s latest upgrade will need a review only after three years.
With regard to implementation of anti-ML&TF regime as required by FATF, a report from ED revealed the agency had in last 10 years conducted 7,300 searches, arrested 755 accused and attached assets worth over Rs 1.2 lakh crore. It confiscated assets worth over Rs 15,700 crore from total attachments during this period and restituted over Rs 16,000 crore to banks and other victims after disposal of assets, all in the last few years.
Over 40 extradition requests were filed by the agency against economic offenders who have fled the country, 24 red corner notices issued and four accused extradited and arrested here, including the two prime accused in the AgustaWestland money laundering case.
But what is of concern, and also raised by FATF, is delayed trials in money laundering and terror financing cases, leading to very few convictions. In the last decade, ED has registered over 5,000 cases of ML&TF, but it has been able to complete investigations only in about 1,300 cases where it has filed chargesheets. Even after filing of chargesheets, the trials have not progressed much in many cases leading to less than 50 convictions so far.
FATF has, however, appreciated India’s performance in international cooperation with regard to providing investigation support to foreign countries in cases of terror financing and money laundering.