FATF PRIVATE SECTOR COLLABORATIVE FORUM
Event Name: FATF Private Sector Collaborative Forum (PSCF) 2025
- Dates: March 25-27, 2025
- Location: Mumbai, India
- Hosts:
- Reserve Bank of India (RBI)
- Department of Revenue, Ministry of Finance
- Purpose: The forum will bring together stakeholders from around the world to discuss critical issues related to anti-money laundering (AML) and counter-terrorism financing (CFT), including payment transparency, financial inclusion, and the digital transformation of financial systems.
KEY FOCUS AREAS OF THE FORUM
- Payment Transparency: Enhancing transparency in global financial transactions to combat illegal financial activities such as money laundering and terrorism financing.
- Financial Inclusion: Ensuring access to financial services for underserved populations while preventing misuse for illegal activities.
- Digital Transformation: Exploring how digital tools and technologies can help strengthen financial systems and improve compliance with global AML/CFT standards.
- Technological Threats: Addressing emerging risks, such as cryptocurrency-related money laundering, and adapting regulatory measures to tackle these threats.
- Beneficial Ownership Transparency: Improving the transparency of ownership structures to prevent illicit financial flows.
- Terrorist Financing: Focusing on countering terrorist financing and proliferation financing, which support the development of weapons of mass destruction.
INDIA’S ROLE IN THE FORUM
- Leadership: India’s hosting of the PSCF reflects its growing leadership in global financial regulation and its commitment to combating financial crimes.
- Key Figures:
- FATF President Elisa de Anda Madrazo will inaugurate the event on March 26, 2025.
- RBI Governor Sanjay Malhotra will preside over the forum.
- Vivek Aggarwal, Additional Secretary (Revenue), Ministry of Finance, will lead the Indian delegation.
- Significance: India’s role in hosting the forum is significant in the context of its ongoing efforts to strengthen the global fight against money laundering and terrorist financing.
STRATEGIC IMPORTANCE OF THE FORUM
- Global Cooperation: The PSCF will provide a platform for collaboration among FATF member countries, international organizations, financial institutions, and private sector stakeholders to tackle global financial crime.
- Private Sector Engagement: The forum emphasizes the importance of private sector involvement in strengthening AML/CFT measures, with a focus on sharing best practices.
- Emerging Financial Crimes: Discussions will include addressing new financial crime risks arising from technological advancements, such as cryptocurrencies and virtual assets.
INDIA’S PROGRESS IN COMBATING FINANCIAL CRIMES
- FATF Evaluation: In June 2024, the FATF placed India in the “regular follow-up” category after evaluating the country’s efforts in AML and CFT. The FATF praised India for its technical compliance with international AML/CFT standards.
- Hosting the PSCF: By hosting the PSCF 2025, India further solidifies its role in the global fight against financial crimes and terrorism financing.
FATF’S ROLE & GLOBAL IMPACT
- FATF’s Global Standards: The Financial Action Task Force (FATF) sets the global standards for anti-money laundering (AML), combating the financing of terrorism (CFT), and addressing proliferation financing.
- Global Policy Influence: FATF issues recommendations to countries to assess whether they are effectively combating money laundering, terrorism financing, and the financing of weapons of mass destruction.
- Emerging Threats: The FATF is actively addressing the evolving threats in the financial sector, including cryptocurrency-based financial crimes and new forms of terrorist financing.
ABOUT FATF
- Establishment: FATF was established in 1989 by the Group of Seven (G-7) countries at the G-7 Summit in Paris, France.
- Mandate: FATF is the apex global body responsible for setting standards and promoting effective implementation of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. It also addresses the issue of proliferation financing, which involves the provision of funds for the development of weapons of mass destruction (chemical, biological, or nuclear weapons).
- Recommendations: FATF issues recommendations to countries to improve their legal and regulatory frameworks for AML/CFT and assesses their effectiveness in combating financial crimes.
- FATF Membership:
- Members: 40 members, including 38 countries (e.g., the United States, Germany, Russia) and 2 regional organizations (Gulf Cooperation Council, European Union).
- Russian Membership: Russia’s membership was suspended in 2023 due to its invasion of Ukraine.
- India’s Membership: India became a member of FATF in 2010.
- Headquarters: Paris, France
- President of FATF: Elisa de Anda Madrazo
PARTICIPATION & STAKEHOLDERS
The PSCF 2025 will involve wide-ranging participation:
- Countries: Representatives from FATF member countries and international organizations will participate.
- Private Sector: Financial institutions, non-financial businesses, and virtual asset service providers (VASPs) will engage in discussions on strengthening AML/CFT frameworks.
- International Organizations & Academia: Experts will offer insights into financial crime trends and best practices.
FUTURE OUTLOOK
- Digital Innovation: As the world becomes more digital, discussions at the forum will focus on managing new financial crimes related to emerging technologies.
- Enhanced Global Cooperation: The forum will help strengthen cooperation between nations and sectors, focusing on a unified approach to tackling global financial crime.
- Global Resilience: The event will underscore the importance of building resilience against financial crimes through better compliance, information sharing, and technological innovation.
CONCLUSION
The FATF Private Sector Collaborative Forum 2025 is a crucial platform for addressing global financial crime challenges. By hosting this forum, India is demonstrating its leadership in promoting global financial integrity and advancing efforts to combat money laundering, terrorism financing, and proliferation financing. With participation from key global players, this forum will contribute to shaping the future of financial security and regulatory cooperation on the world stage.
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