Monday, July 21, 2008

India Joins FATF

It was recently announced in this article that India is going to join the Financial Action Task Force later this year, in part due to pressure from the United States. Specifically the US had been denying the ICICI Bank, Bank of Baroda, and State Bank of India branch licenses on the premise that the country was not a member of FATF. Since the Reserve Bank of India withheld branch licenses from Citibank, other Indian Banks were given temporary relief, however, the country still felt is was necessary in order for local banks to have better access to developed country markets. So far all of the requirements have been fulfilled for India to join the organization with the exception that they have not amended the Prevention of Money Launder Act (PMLA) to incorporate offensive strategies. It is expected that the amendments will be passed through Parliament in the next month allowing India to have membership.

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