Citing FATF, Centre urges SC to let Mishra continue as ED chief

Subject : International Relations

Section: International Organisations

Concept :

The Supreme Court on Wednesday agreed to hear on July 27 an urgent application moved by the Centre to allow Enforcement Directorate (ED) Director Sanjay Kumar Mishra to continue in office till October 15.
A Supreme Court judgment on July 11 had directed him to quit office by July 31. The top court had concluded that Mishra’s continuance at the helm of the ED on his third consecutive extension, till November 2023, was illegal.
However, the court, on July 11, had given the government time till July 31 to find a replacement for Mr. Mishra.
The leeway was given by the court taking into consideration the government’s submission that Mishra’s presence was necessary for the ongoing evaluation by the Financial Action Task Force (FATF).

FATF’s mutual evaluation process

The mutual evaluation process is a review of a country’s legal and institutional framework to combat money laundering and terrorist financing, as well as its implementation of measures to prevent these crimes.
During the process, the FATF assesses a country’s compliance with its 40 recommendations on anti-money laundering and counter-terror financing, as well as the level of effectiveness of these measures in practice.
The outcome of the mutual evaluation is a report that highlights a country’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.

How will FATF evaluate India?

The FATF’s evaluation will cover a wide range of areas, including India’s legal framework, regulatory system, law enforcement efforts, and international cooperation.
Central agencies have been working to ensure that India’s anti-money laundering and counter-terror financing laws are in line with international standards, and that their implementation is effective.

Significance of this evaluation

The outcome of the evaluation will be a report that highlights India’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.
The mutual evaluation process is an important tool in the global fight against money laundering and terrorist financing.
Its outcome can have significant implications for a country’s access to international financial markets and its reputation in the global community.