The fight against terror financing requires both multilateral norms and domestic teeth. Critically evaluate India's record in light of its 2024 FATF Mutual Evaluation.

Q. The fight against terror financing requires both multilateral norms and domestic teeth. Critically evaluate India's record in light of its 2024 FATF Mutual Evaluation. (15 marks, 250 words)

Terror financing is a transnational threat that no single state can defeat alone; it demands both global standard-setting through the Financial Action Task Force (FATF) and robust domestic enforcement. India's 2024 Mutual Evaluation — placing it in the elite "regular follow-up" tier alongside only four other G20 nations — validates a maturing record, though implementation gaps persist [1].

Multilateral norms — a strong record - India's outstanding MER outcome at the June 2024 Singapore Plenary reflects high technical compliance with FATF's 40 Recommendations [1]. - Rising institutional stature: India hosted PSCF 2025 in Mumbai and secured the FATF Vice-Presidency (July 2026–June 2027), boosting leverage on cross-border terror financing [2][3].

Domestic teeth — substantive but uneven - Legislative spine: PMLA 2002, UAPA 1967, Fugitive Economic Offenders Act 2018, Black Money Act 2015. - FATF lauded the JAM Trinity and cash-transaction curbs as effective AML levers [4]. - 2023 PMLA notifications brought crypto/VDAs and professionals under the reporting ambit.

Persisting weaknesses - Inter-agency coordination among ED, FIU-IND, NIA, CBI remains fragmented. - Low conviction rates and delays in concluding money-laundering prosecutions. - FATF flagged the need to strengthen supervision of non-financial sectors.

India's trajectory shows norms and domestic law reinforcing each other, yet enforcement efficiency lags legislative ambition. Consolidating conviction outcomes and inter-agency synergy — while leveraging its FATF Vice-Presidency to globalise the terror-financing agenda — would convert India's regulatory credibility into durable security dividends, advancing SDG 16 on peace and strong institutions.

(~250 words)

Sources: 1. FATF adopts Mutual Evaluation Report of India in its June 2024 Plenary held in Singapore (PIB) — "regular follow-up" rating; high technical compliance 2. India to host FATF Private Sector Collaborative Forum 2025, Mumbai (PIB) — PSCF 2025 hosting 3. India to assume Vice-Presidency of the Financial Action Task Force for the first time (PIB) — Vice-Presidency 2026–27 4. FATF lauds India's efforts to implement measures to tackle illicit finance (PIB) — JAM Trinity, cash-curbs as AML levers