India has been elected vice‑president of the Financial Action Task Force (FATF), placing the country in a senior role at the Paris‑based body that sets global standards against money laundering, terrorist financing and proliferation financing. Senior Indian Administrative Service officer Vivek Aggarwal will serve as FATF Vice‑President from July 2026 to June 2027, working alongside the incoming United Kingdom presidency. This is the first time New Delhi will hold the organisation’s second‑highest post since India became a full member in 2010.
The appointment positions India at the centre of international efforts to strengthen financial integrity and to counter evolving threats from new technologies, digital payments and virtual assets. “This appointment is a recognition of India’s collective effort and of the strength of our anti‑money laundering and counter‑terrorist financing framework,” Aggarwal said after his election. Revenue Secretary Arvind Shrivastava called the development a “proud milestone” that reaffirms India’s commitment to protecting the global financial system.
Founded in 1989, the FATF has expanded from an anti‑money‑laundering body to cover terrorist financing after 2001 and proliferation financing in 2012. Today it issues 40 Recommendations that serve as the international blueprint for laws and regulations aimed at preventing illicit finance. Although the FATF cannot impose laws on sovereign states, its standards and peer reviews strongly influence national regulators, banks and investors worldwide.
The FATF itself has 40 members and works with nine FATF‑Style Regional Bodies to apply its standards across more than 200 jurisdictions. Key tools include Mutual Evaluations-detailed, periodic reviews of a country’s legal framework and practical effectiveness-and public monitoring lists. Jurisdictions with significant deficiencies may be placed on the “grey list” for increased monitoring or, in grave cases, the “black list” of high‑risk jurisdictions. As of 2026, Iran, North Korea and Myanmar remain on the FATF blacklist.
India’s vice‑presidency will not allow New Delhi to make unilateral decisions-the FATF operates by consensus-but the role does carry influence in setting agendas, facilitating negotiations and shaping responses to emerging risks. Observers say India’s experience with digital payments and oversight of virtual asset service providers positions it to contribute substantively to global regulatory debates.
The article also notes Pakistan’s long history of FATF scrutiny, including multiple periods on increased monitoring and a removal from the grey list in October 2022 after a reform programme of 34 commitments. Experts caution that membership roles do not automatically alter another country’s FATF status, which rests on technical assessments and collective agreement among member states.
Original Source: https://www.firstpost.com/explainers/what-is-fatf-india-assumes-vice-presidency-explained-14024524.html
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Publish Date: 2026-06-20 18:05:00
