India's move to join the Financial Action Task Force (FATF), a global inter-government body, will help the country combat money laundering and terror financing, parliament was informed today.
India was inducted last month as a member of FATF, a standard setting global organisation that aims to combat money laundering and terror financing.
Becoming a part of FATF will help the country ensure that financial institutions are not vulnerable to infiltration or abuse by organised crime groups, Minister of State for Finance Namo Narain Meena said in a written reply to Rajya Sabha.
"It (FATF membership) will help India to build the capacity to fight terrorism and trace terrorist money and to successfully investigate and prosecute money laundering and terrorist financing offences," Meena said.
FATF has 34 countries and two regional organisations, European Commission and Gulf Cooperation Council, as members.
It was set up by G-7 nations to create global policies and framework to combat financial crimes, with special focus on checking terror funding.