India to hold vice-presidency of FATF for the first time

For the first time since joining FATF in 2010, India has secured the Vice-Presidency of the Financial Action Task Force, effective July 2026. The elected off...

What Happened

For the first time since joining FATF in 2010, India has secured the Vice-Presidency of the Financial Action Task Force, effective July 2026.
The elected officer — a senior IAS official who previously served as Director of the Financial Intelligence Unit-India (FIU-IND) and led India's FATF delegations — will serve a one-year term as Vice-President.
The election consolidates India's emergence as a rule-setter rather than a rule-taker in global financial governance.
The appointment reflects India's strong 2023–24 Mutual Evaluation Review outcome, where it was placed in the "regular follow-up" category — the highest FATF designation — after rigorous on-site assessment in November 2023.
India's JAM Trinity (Jan Dhan-Aadhaar-Mobile), robust digital payments infrastructure, and strengthened enforcement under the Prevention of Money Laundering Act (PMLA) were specifically cited by FATF as effective measures.

Static Topic Bridges

India's Journey in FATF: From Grey List to Leadership

India joined FATF as a full member in 2010, the same year it was placed on the FATF Grey List (Increased Monitoring) due to identified deficiencies in its AML/CTF framework. India exited the Grey List in 2013 after completing its action plan. Over the following decade, India overhauled its legislative framework — strengthening the PMLA, enhancing FIU-IND's capacity, and integrating digital finance — resulting in the landmark 2024 Mutual Evaluation placing India among the best performers globally.

India joined FATF: 2010; simultaneously placed on Grey List; exited Grey List: 2013
PMLA 2002 (with amendments in 2005, 2009, 2012, 2019): primary AML statute
Enforcement agencies: Enforcement Directorate (ED) for PMLA; FIU-IND for financial intelligence
2024 Mutual Evaluation: "Regular Follow-up" (highest category); 12 Recommendations rated "Compliant"
Only 4 other G20 nations share this highest rating

Connection to this news: India's Vice-Presidency is the direct outcome of this two-decade journey — from a jurisdiction with deficiencies to one leading the global standard-setting body.

FATF's 40 Recommendations and Mutual Evaluation Process

FATF's 40 Recommendations set the international standard for preventing money laundering, terrorist financing, and proliferation financing. Every member country undergoes a Mutual Evaluation Review (MER) — a peer-reviewed assessment of both technical compliance (laws and institutions in place) and effectiveness (how well the system works in practice). Countries are rated in four categories: Compliant (C), Largely Compliant (LC), Partially Compliant (PC), and Non-Compliant (NC) for technical compliance, and on a scale from Low to High for effectiveness.

40 Recommendations issued in 1990; last revised comprehensively in 2012, updated 2019–2023
Mutual Evaluation assesses 40 technical compliance criteria + 11 immediate outcomes for effectiveness
Countries rated "Compliant" or "Largely Compliant" on most recommendations enter "Regular Follow-up" (highest tier)
Countries with significant gaps enter "Enhanced Follow-up" (Grey List equivalent for reporting purposes)
Assessment teams comprise evaluators from other FATF member jurisdictions

Connection to this news: India's 2023–24 MER — the basis for the Vice-Presidency — evaluated precisely these 40 Recommendations and 11 immediate outcomes.

Counter-Terrorist Financing (CTF) and India's Domestic Framework

Terrorist financing is the process by which funds — from legitimate or criminal sources — are channelled to support terrorist activities. FATF's counter-terrorist financing (CTF) standards, expanded post-9/11, require countries to criminalise terrorist financing, freeze terrorist assets, and implement targeted financial sanctions (TFS). India's Unlawful Activities (Prevention) Act (UAPA), 1967 (as amended) and the relevant provisions of the PMLA form the CTF backbone. The Enforcement Directorate (ED) and the National Investigation Agency (NIA) are India's primary CTF enforcement agencies.

UN Security Council Resolution 1267 (1999) and Resolution 1373 (2001): foundational international CTF instruments
FATF Recommendation 6: countries must implement targeted financial sanctions without delay
UAPA, 1967 (as amended in 2004, 2008, 2012, 2019): India's primary counter-terror statute, includes terrorist financing provisions
Designated terrorist organisations/individuals are notified under the First Schedule of UAPA
NIA (established 2009) and ED are India's lead CTF investigation agencies

Connection to this news: India's improved CTF enforcement was a key factor in the positive 2024 MER, which in turn enabled the Vice-Presidency election.

Key Facts & Data

FATF founding: 1989 (G7 Paris Summit); Secretariat: Paris (OECD)
India's FATF membership: 2010 (also placed on Grey List 2010, exited 2013)
2024 Mutual Evaluation: "Regular Follow-up" — highest category; on-site inspection: November 2023; report adopted: June 2024 (Singapore plenary)
Vice-Presidency term: July 2026 – June 2027
JAM Trinity explicitly recognised by FATF for reducing cash-based risk
FATF has 40 full members and 2 regional organisation members
India rated "Compliant" in 12 of 40 Recommendations and "Substantial" in 6 of 11 effectiveness outcomes
Prevention of Money Laundering Act (PMLA), 2002 is India's primary AML statute