India to assume Vice-Presidency of the Financial Action Task Force (FATF) for the first time

Vivek Aggarwal, Secretary to the Union Ministry of Culture, has been elected as the Vice-President of the Financial Action Task Force.

• This is the first time India will hold the Vice-Presidency of FATF.
• The Vice-President is elected by the FATF Plenary from among its members and assists the President in steering the organisation’s work.
• India’s appointment reflects the country’s growing credibility in combating money laundering, terrorist financing, and proliferation financing.
• The elevation follows India’s strong performance in its latest Mutual Evaluation and its contribution to global policy on virtual asset service providers (VASPs) and digital payments.

About the Financial Action Task Force (FATF)

• FATF is an inter-governmental body established in 1989.
• Headquarters: Paris.
• Membership: 40 members (39 jurisdictions and the European Commission).
• India became a member in 2010.

Objectives

• To develop and promote global standards for combating:
  • Money laundering (AML)
  • Terrorist financing (CFT)
  • Proliferation financing (CPF) related to weapons of mass destruction.
• To ensure countries have effective legal, regulatory, and institutional frameworks to tackle illicit financial flows linked to:
  • Drug trafficking
  • Illicit arms trade
  • Cyber fraud
  • Organised crime
  • Terrorism

Key Functions

• Issues the internationally accepted 40 FATF Recommendations (global AML/CFT standards).
• Conducts Mutual Evaluations to assess members’ compliance and effectiveness.
• Monitors countries’ implementation of FATF standards.
• Identifies jurisdictions with strategic deficiencies in anti-money laundering and counter-terror financing systems.

FATF Lists

• Jurisdictions under Increased Monitoring (Grey List):
  • Countries with strategic deficiencies that have committed to addressing them within agreed timelines.
• High-Risk Jurisdictions (Black List):
  • Countries with serious deficiencies requiring enhanced due diligence and countermeasures by the international community.

Significance for India

• Enhances India’s influence in shaping global standards on financial integrity and counter-terror financing.
• Strengthens India’s leadership in addressing emerging challenges such as digital payments, virtual assets, and cross-border financial crimes.
• Reinforces India’s global standing as a responsible stakeholder in international financial governance.

Sources: PIB & FATF

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