FINANCIAL ACTION TASK FORCE : DEFENCE
NEWS : India
bats for new disclosure norms for cross-border credit card transactions under
FATF
WHAT’S IN THE NEWS ?
Global
money laundering and terrorist financing watchdog Financial Action Task Force
(FATF) is working towards new norms for higher disclosures by financial
institutions, payment aggregators, fintech companies for cross-border payments,
involving mainly credit card transactions.
About FATF:
- Establishment:
Formed in 1989 by the G7.
- Focus: Combats money laundering,
terrorist financing, proliferation financing, and other financial threats.
- Membership: India became a member in
2010.
Recent Developments:
- Enhanced Norms:
FATF is considering stricter disclosure norms for online cross-border wire
transactions.
- India's Proposal:
Push for increased disclosures by fintech firms, credit card companies,
and payment aggregators to identify senders and recipients in cross-border
transactions.
- FATF R.16 Update: To
ensure technology neutrality and make cross-border payments faster,
cheaper, and safer.
- India’s Mutual Evaluation:
FATF will soon release a report assessing India's efforts against terror
financing and money laundering.
Current FATF Travel Rules:
- Cross-border transactions record data like the
sender’s and recipient’s names and the country of origin.
Source : https://indianexpress.com/article/business/banking-and-finance/india-bats-for-new-disclosure-norms-for-cross-border-credit-card-transactions-under-fatf-9560911/#:~:text=India%20supports%20greater%20transparency%20and,between%20compliance%20and%20industry's%20concerns.