Anti-money laundering watchdog FATF says India in compliance with its rules

NEW DELHI (Reuters) - A global anti-money laundering watchdog said on Friday that India had largely complied with its rules, although it needs to strengthen supervision of its non-financial sectors to prevent financial crime.

The Financial Action Task Force (FATF) said India had reached a high level of technical compliance, as the country was effective in curbing money laundering and terrorist financing.

However, improvements were needed to strengthen the supervision and implementation of preventive measures in some of the country's non-financial sectors, the Paris-based body said in a statement.

India also needs to address delays in concluding money laundering and terror financing prosecutions, the FATF said in its statement.

The FATF is an intergovernmental organisation established in 1989 as the international watchdog to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. India became a member of the FATF in 2010.

The Indian government said the FATF's Mutual Evaluation Report of India, which was adopted at the FATF plenary held in Singapore, places India in the "regular follow-up" category, which demonstrates the "stability and integrity" of the country's financial system.

A regular follow-up means that India needs to report to the FATF only in 2027.

"Good ratings will lead to better access to global financial markets and institutions and increase investor confidence," the Indian government said in a statement.

The FATF will publish its final report on India after a quality and consistency review, the watchdog said.

(Reporting by Shivangi Acharya and Aftab Ahmed; Editing by Anil D'Silva)