First published on The Wire: https://thewire.in/government/india-passes-fatf-scrutiny-but-concerns-raised-over-stringent-oversight-mechanism-for-ngos
The Financial Action Task Force (FATF) has given India a positive assessment in its latest mutual evaluation report, praising the country’s efforts to combat money laundering and terrorist financing. However, this approval comes amid significant concerns raised by civil society organizations about the misuse of anti-money laundering laws to suppress legitimate NGO activities.
The FATF report commends India for its “strong commitment” to addressing financial crimes and highlights improvements in the country’s legal framework and institutional capabilities. It notes that India has successfully prosecuted a number of money laundering cases and made progress in confiscating criminal proceeds.
Despite this positive evaluation, civil society groups have expressed alarm over the Indian government’s increasingly stringent oversight of non-governmental organizations (NGOs). They argue that laws ostensibly designed to prevent money laundering and terrorist financing, such as the Foreign Contribution Regulation Act (FCRA), are being used to restrict and control NGO operations.
Critics point out that the FATF’s assessment fails to adequately address the negative impact of these measures on civil society. They argue that the strict regulations have created a climate of fear among NGOs, leading to self-censorship and reduced capacity to serve vulnerable populations.
