Financial Action Task Force
- Formation: The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
- Objectives: To set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- Secretariat: Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in
- Member Countries: The FATF currently has 39 members including two regional organisations — the European Commission and Gulf Cooperation Council. India is a member of the FATF.
- Decision Making Body: The FATF Plenary is the decision making body of the FATF. It meets three times per year.
Lists under FATF:
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list (or ‘Jurisdictions under increased monitoring’). This inclusion serves as a warning to the country that it may enter the blacklist.
- Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries. As of this year, there are only two countries on the FATF’s black list – North Korea and
CONTEXT
- India and US signed the BECA recently in India – US 2+2 dialogue mechanism meeting. BECA is one of the foundational agreement, others being LEMOA, COMCASA.
SIGNIFICANCE FOR INDIA
- Strengthen India’s offensive and defensive technology – It will help India get real access to American geospatial intelligence that will enhance the accuracy of automated systems and weapons like missiles and armed drones.
- Navigation and Space research – Through sharing of information on maps and satellite images, it will help India access topographical and aeronautical data and advanced products that will aid in navigation and targeting.
- Defence Cooperation – Enhance Air Force to Air Force cooperation between India and The US.
- Better Warfare – It will provide Indian military systems with a high quality GPS to navigate missiles with real time intelligence to precisely target the adversary.
- Humanitarian Assisstance – Geospatial intelligence is critical to response to natural disaster.
- Affirmation of the mutual trust – Signing of Foundational agreement is an affirmation of the mutual trust between the two militaries, and its application will enhance the trust.
- Strategic Convergence in the Indo-Pacific – A close partnership between the United States and India is central to a free, open, inclusive, peaceful, and prosperous Indo-Pacific region.
- To counter China – These agreements may empower India to check Chinese expansionism which threatens a large number of countries in its neighbourhood and beyond, and which has been challenging several established norms and aspects of international relations. Close defence and military cooperation between India and US as well as with other like-minded nations in the future helps to counter Chinese aggression in the region
CONCERNS
- India’s policy of Strategic Autonomy – critics express that the agreements imperil India’s long-held foreign policy of strategic autonomy by paving the way for U.S. bases or ports in Indian territories, or unduly binding India to U.S. systems and procedures. India may have been as US ally.
- Russia factor – US would want India to buy arms from it while reducing arms import from traditional arms exporter and strategically important russia.
- More favourable to US – Critics argue that these agreemnts are more beneficial for US to increase its presence in Indo Pacific while India due to limited regional presence may not benefit much.
3RD INDIA- US 2+2 MINISTERIAL MEETING
- A ‘2+2 dialogue ‘ is a term used for installation of a dialogue mechanism between two countries’ defence and external affairs ministeries to discuss strategci and security interests
- India has also established a 2+2 dialogue mechanism with other Quad countries Japan and Australia.
KEY HIGHLIGHTS OF 3RD MEET
- Strengthening Bilateral US India Cooperation – Some key Agreement signed for
- Technical cooperation on Earth Sciences
- Extending the arrangement on nuclear cooperation
- Agreement on postal services.
- Cooperation in Ayurveda and cancer research
- Agreement on electronic exchange of customs data
- Cooperation during covid 19 Pandemic – Ministers sought to jointly promote access to high quality safe, effective, and affordable COVID -19 vaccines and treatments on a global scale.
- Signal against China – Emphasis on democracy, rule of law and transparency, Freedom of navigation and foundation of free and prosperous Indo-Pacific. US supported India’s position in current standoff between India and china in Eastern Ladakh.
- Position on Asia Pacific – Highlighted Indo-US goals in the Asia Pacific region and emphasized that the Code of Conduct in the South China sea should not prejudice the legitimate rights and interests of any nation in accordance with international law.
CONCLUSION
- Since the Civil Nuclear Agreement of 2005, the India-U.S. defence cooperation has been advancing at a rapid pace. The U.S. has relaxed restrictions on technology trade in India’s favour considerably, and India is designated a ‘Major Defence Partner’. Conclusion of foundational agreements would further deepen defence cooperation and definitely placed India in a strategically advantageous position. However, India’s policy maker must ensure that these agreements would not affect India’s strategic autonomy.