The ‘Financial Action Task Force’ (FATF) in its Mutual Evaluation Report pulls up the Indian government on the risk to abuse that the non-profit sector faces in India, said Amnesty International today. It also flags the delay in prosecutions in India under its money laundering and anti-terrorism laws.
What does the Mutual Evaluation Report highlight?
- The critical need for a risk-based and educative approach with non-profit organizations.
- The requirement for priority actions to prevent harassment of civil society.
- Partial compliance with measures to protect the legitimate activities of the non-profit sector.
The report shows that India is only ‘partially compliant’ against FATF recommendation 8, requiring careful, targeted analysis of non-profit organizations vulnerable to terrorism financing abuse.
What are the key points flagged in the report?
- The inability of India’s Income Tax department to prioritize at-risk non-profit organizations.
- Burdensome registration and audit requirements negatively impacting non-profits’ work.
- 2020 amendments to FCRA without adequate consultation impacting non-profits’ activity.
The report also raises concerns about delays in prosecutions under UAPA and PMLA, potentially leading to misuse against human rights defenders.
What Priority Actions does FATF recommend?
- Conducting a more focused, coordinated outreach to non-profits on Terrorism Financing risks.
- Addressing delays in concluding prosecutions under UAPA and PMLA.
Amnesty International urges the Indian Government to act on the priority actions to prevent the witch-hunt of non-profit organizations and human rights defenders.
Previously, Amnesty International’s research highlighted how FATF’s recommendations have been misused by the Indian authorities to stifle the non-profit sector and silence critics. The government must align laws like FCRA and UAPA with international human rights standards to protect activists and organizations.
“The Indian Government must take seriously the priority actions recommended by the FATF report and calibrate its actions with a risk-based approach to stop the witch-hunt under India’s anti-terror and money-laundering laws of non-profit organizations, human rights defenders and activists who dare to dissent,” said Aakar Patel.
Source: www.amnesty.org