International Cooperation In Combating Money Laundering: India And Fatf Compliance
Authors
Abstract
Money laundering crosses territorial boundaries through correspondent banking, corporate structures, informal value transfer systems and digital platforms. Consequently, domestic criminalisation alone cannot secure effective prevention, investigation, confiscation or recovery. This doctrinal research paper examines international cooperation in combating money laundering with particular reference to India’s legal and institutional framework and its compliance with the Financial Action Task Force (FATF) standards. It analyses the Prevention of Money Laundering Act, 2002, the roles of the Financial Intelligence Unit–India and the Directorate of Enforcement, mutual legal assistance, information exchange, beneficial ownership transparency and asset recovery. The FATF mutual evaluation of India published in 2024 is examined as an important benchmark, while recognising the difference between technical compliance and demonstrated effectiveness. The study argues that India’s strong formal alignment and favourable regular-follow-up status must be consolidated through prompt cross-border cooperation, risk-based supervision, accurate ownership information and procedural safeguards. It proposes practical reforms involving interoperable requests, feedback mechanisms, institutional capacity and transparent effectiveness indicators. International cooperation is presented not as an exception to sovereignty but as a legally structured necessity for addressing transnational financial crime.
Keywords
Money LaunderingInternational CooperationFATFIndiaPMLAMutual Legal Assistance
References
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Directorate of Enforcement, FATF,
https://enforcementdirectorate.gov.in/international-cooperation/fatf/ - Financial Action Task Force, Anti-Money Laundering and Counter-Terrorist Financing Measures: India, Mutual Evaluation Report (2024).
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Financial Action Task Force, International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation (FATF Recommendations, updated June 2026),
https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html - Financial Action Task Force, Methodology for Assessing Technical Compliance with the FATF Recommendations and the Effectiveness of AML/CFT/CPF Systems (updated 2026).
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Financial Intelligence Unit–India, Frequently Asked Questions,
https://fiuindia.gov.in/files/FAQs/faqs.html - Pavana Dibbur v. Directorate of Enforcement, 2023 SCC OnLine SC 1586.
- Press Information Bureau, Ministry of Finance, FATF Lauds India’s Efforts to Implement Measures to Tackle Illicit Finance (19 Sept. 2024).
- Prevention of Money Laundering Act, 2002 (Act 15 of 2003) (India).
- United Nations Convention against Corruption, 2003.
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.
- United Nations Convention against Transnational Organized Crime, 2000.
- United Nations Office on Drugs and Crime, Manual on Mutual Legal Assistance and Extradition (2012).
- Vijay Madanlal Choudhary v. Union of India, (2022) 10 SCC 386.
How to Cite this Article
Ms. Supriya Michael Lopes, *Dr. Kavita Lalchandani (2026). International Cooperation In Combating Money Laundering: India And Fatf Compliance. RPPSS, 1(2), 13-20.
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