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.