Vivek Aggarwal's FATF Appointment Seen as Boost to India's Anti-Terror Financing Efforts

Aggarwal believes that the election is a reflection of India's joint efforts and its effective systems against money laundering and financing of terror.

In 2018, FATF had placed Pakistan on its grey list owing to the financing of terrorism in India via money laundering. Pakistan was removed from the grey list of FATF in 2022 owing to the FATF measures taken by it.

During that period, Pakistan struggled to secure desired loans from the IMF, and its financial situation deteriorated. Following Pakistan's alleged involvement in a terror attack in Pahalgam last April, the Indian government is once again attempting to have the country placed back on the FATF grey list.

If successful, this move would prevent Pakistan from financially supporting terror networks targeting India. It is believed that this effort will gain further momentum with Vivek Aggarwal assuming the role of Vice President.

The FATF has placed countries like Iran and Myanmar on its 'black list'. An FATF meeting, led by Mexico, was convened in Paris on June 19–20 to discuss terrorist financing and other financial transactions; a report detailing funding sources and irregularities across various nations was presented during the session.

Following this report, the FATF has placed Iran, North Korea, and Myanmar on its blacklist. Countries on the blacklist face accusations of providing financial support to banned groups and other terrorist organizations.

Nations included in the blacklist are unable to secure assistance from global financial agencies, and business transactions with them are restricted.

The report noted that Iran failed to provide sufficient information regarding the measures it had taken to prevent terrorist financing; consequently, providing financial aid to Iran is considered risky.