India has defended the Financial Action Task Force at the United Nations, saying countries under scrutiny should improve compliance instead of questioning the credibility of the global anti-terror financing watchdog.
India's Permanent Representative to the UN P Harish addresses a UN Security Council meeting. (File pic: IANS)
India has strongly defended the Financial Action Task Force (FATF), saying attempts to undermine the global anti-terror financing watchdog are driven by a reluctance to face scrutiny rather than concerns over its functioning.
Speaking at a United Nations event on countering terrorism financing, India’s Permanent Representative to the UN, P Harish, described FATF as a vital institution in the global fight against terrorism financing and money laundering. His remarks came amid Pakistan’s repeated criticism of the organisation after being subjected to enhanced monitoring in the past.
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Addressing a side event during the UN’s Counter-Terrorism Week, co-hosted by India and France, Harish said FATF’s work is guided by technical assessments and internationally accepted standards.
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“Attempts to question its credibility often reflect fear of scrutiny rather than genuine process-related concerns,” he said.
Without naming Pakistan, Harish said the history of terrorism financing made it clear that such threats did not emerge in isolation.
“Our history shows that critical terrorist financing risks have not emerged anonymously,” he said. “They have been sponsored, including by some state actors.”
He said countries receiving adverse FATF assessments should address the shortcomings identified by the watchdog instead of trying to politicise the process.
“Countries facing adverse assessments should address the deficiencies identified, strengthen domestic enforcement, improve financial transparency, and demonstrate irreversible action against terror financing networks,” Harish said.
“The answer to FATF scrutiny is not politicised activism in UN forums, but credible compliance,” he added.
He also said governments must ensure that their territories, institutions and financial systems are not used to support terrorism.
“States that allow their territory, institutions or financial channels to be misused for terrorism must stop exporting instability and start fulfilling their obligations towards international peace and security,” he said.
Harish said India has aligned its financial system with evolving global standards as technology changes the way illicit funds move across borders.
He said India has brought virtual asset service providers under its anti-money laundering framework and strengthened verification requirements for centralised exchanges and their users.
According to Harish, India has also contributed case studies and shared best practices with FATF to help address emerging risks linked to terrorism financing.
He noted that digital technologies have made the movement of illicit assets more complex and said India has long faced the challenge of cross-border terrorism.
“For decades now, my country, India, has confronted cross-border terrorism, and new digital technologies are only making the sources, the methods, and channels used for the flow of assets more complex,” he said.
Pakistan has repeatedly accused FATF of being politically influenced after it was placed on the organisation’s “grey list”, which subjects countries to increased monitoring over deficiencies in combating money laundering and terrorism financing.
According to India, however, the appropriate response to FATF’s assessments is to implement reforms and strengthen enforcement rather than question the institution itself.
The FATF is a 40-member international body that sets global standards to combat money laundering, terrorism financing and the financing of weapons proliferation. It monitors countries’ compliance and works to prevent financial systems from being misused for terrorism and other forms of organised crime.
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