- In a landmark recognition of India’s growing leadership in the global fight against money laundering and terrorist financing, Shri Vivek Aggarwal, a 1994-batch officer of the Indian Administrative Service (Madhya Pradesh cadre) and presently Secretary to the Government of India, Ministry of Culture, has been elected and appointed Vice-President of the Financial Action Task Force (FATF).
- This is the first time that India will hold the Vice-Presidency of the FATF.
- The Vice-President of the FATF is elected by the FATF Plenary from among its members and assists the President in steering the organisation’s work.
- The appointment places an Indian official at the apex of the global standard-setting body for anti-money laundering and counter-terrorist financing.
- India’s elevation to the Vice-Presidency reflects the credibility and trust the country has earned within the FATF Global Network of more than 200 jurisdictions.
- It builds directly on India’s strong showing in its most recent Mutual Evaluation, and on the country’s sustained contribution to shaping global policy on emerging risks, including those associated with virtual asset service providers and digital payments.
- The Financial Action Task Force is the Paris-based inter-governmental body that sets global standards to prevent money laundering, terrorist financing and the financing of proliferation.
- The FATF Presidency runs on a two-year term, and the Vice-President assists the President in carrying out the organisation’s mandate.
Financial Action Task Force:
- It is an independent intergovernmental body that develops and promotes policies to protect the global financial system against money laundering and terrorist financing.
- It was established in 1989 during the G7 Summit in Paris in response to a growing concern about money laundering.
- In 2001, its mandate expanded to include terrorism financing.
- Headquarters: Paris, France.
- Members: FATF members include 40 countries, including the United States, India, China, Saudi Arabia, Britain, Germany, France, and the EU as such.
- India became a member of FATF in 2010.
- In addition, over 200 jurisdictions around the world have committed to the FATF Recommendations through the global network of FSRBs and FATF memberships.
- FATF regularly publishes reports that raise awareness about the latest money laundering, terrorist financing, and proliferation financing techniques.
- Once a member, a country or organization must endorse and support the most recent FATF recommendations and commit to being evaluated by (and evaluating) other members.
- The FATF holds countries to account that do not comply with the FATF Standards.
- If a country repeatedly fails to implement FATF Standards, then it can be placed under the grey and black lists.
- The FATF recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard.