Q. India has been placed in the ‘regular follow up category’ in the “Mutual Evaluation Report of India” by Financial Action Task Force (FATF). What does this imply?

[A] India is now subject to increased monitoring by FATF due to strategic deficiencies in its financial crime prevention regime.

[B] India has been placed on FATF "grey list" of jurisdictions under increased monitoring for money laundering and terrorist financing risks.

[C] India has demonstrated a high level of technical compliance with FATF standards and its anti-money laundering and counter-terrorist financing regime is achieving good results.

[D] India has significant deficiencies in its anti-money laundering and counter-terrorist financing systems.

Answer: C
Notes:

Explanation – The “regular follow-up” category is the most favourable outcome in a FATF evaluation. It signifies that India’s efforts to combat money laundering and terrorist financing are considered effective. While there are areas for improvement, such as speeding up prosecutions in these cases, overall, India has been commended for its progress.

Source: The Hindu

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