The report, based on a survey of 748 NPOs, reveals how the Indian government has systematically targeted a broad range of organizations by misusing FATF-inspired laws, including the Foreign Contribution (Regulation) Act (FCRA), the Prevention of Money Laundering Act (PMLA), and the Unlawful Activities (Prevention) Act (UAPA). Despite nearly 90% of the NGO sector posing “no risk of terror funding or money laundering,” over 20,000 NPOs have been stripped of their licenses to receive foreign funding under the guise of national security concerns.
The report also highlights how the Indian government has failed to engage with civil society actors on critical matters affecting their operations. The report finds that 96.38% of surveyed NPOs were never consulted by the government to assess the risk of terrorist financing, and 98.79% reported no contact from the government for advice on mitigating such risks.
Three case studies documented in the report demonstrate how the misapplication of FATF standards has stifled the operations of critical organizations: (1) the dismantling of child rights NGOs, (2) the suppression of climate change advocacy groups, and (3) the blockage of essential funds and supplies to Indian NGOs during the COVID-19 pandemic, exacerbating the crisis’ human toll.
These instances underscore how authoritarian regimes have used FATF-related laws to curb civil society and hinder the legitimate work of NPOs under the pretense of safeguarding national security.
