We, the undersigned, are writing to bring to your attention critical concerns regarding the Financial Action
Task Force (FATF)’s Mutual Evaluation Report (MER) for India. We are witnessing alarming indications of the
Indian government’s misuse of FATF standards to target and undermine civil society organizations working
to defend human rights and urge FATF secretariat to schedule a meeting between the assessment team and
Indian civil society representatives to ensure a more comprehensive and inclusive evaluation.
In November 2023, FATF’s assessment team visited India for the fourth periodic review of the country’s
record on tackling illicit funding. It is scheduled to publish the MER in June 2024 for discussion during the
plenary session.
Ahead of India’s MER, five reports by different civil society organizations were submitted to the FATF. They
present a deeply disturbing picture of how the Indian government has not only failed to comply with FATF
standards but has also grossly misused them.1 As the FATF plays a pivotal role in shaping global standards we urge the secretariat and the assessment team to carefully consider the findings and recommendations
presented in these reports and take necessary steps to mitigate these harms.
The reports vividly illustrate instances of misuse of FATF recommendations. Of particular concern are the
revelations that the government, under the guise of adhering to FATF standards, has impeded the legitimate
operations of not-for-profit organizations (NPOs) through the misuse of FATF Recommendation 8. These
reports highlight the resulting harm to over 20,000 NPOs, leading to severely limiting or halting the
operations of international entities like Oxfam, Amnesty International India, Greenpeace and Save the
Children, and the unjust incarceration of human rights defenders. The deepest impact of the misuse of FATF
recommendations are felt by local human rights defenders, organisations and local movements, who have
been criminalized and prevented from carrying out their work effectively and safely. We also note the
discriminatory weaponization of counter terrorism powers by the Indian government to target opposition
groups and human rights defenders but not to restrict financing of violent groups supportive of the
government.
Since the FATF assessment team did not meet with the diverse set of civil society groups in India during
their onsite visit in November 2023 despite calls for the same,2 the perspectives and concerns of civil society
remain unaddressed. The absence of direct engagement with civil society during the onsite visit also raises
doubts about the comprehensiveness of the assessment. Consequently, the findings presented in these
reports offer a crucial opportunity for the assessment team to go some way towards rectifying this gap,
effectively address the concerns raised, and mitigate the potential for further misuse of FATF standards by The FATF has acknowledged instances of its standards being misused by member states, evident in actions
such as intrusive supervision of NPOs without considering associated risks, restrictions on NPOs’ access to
funding and bank accounts, and the forced dissolution, deregistration, or expulsion of NPOs, supposedly
under the guise of FATF compliance3, but actually breaching internationally recognized human rights
standards such as the right to freedom of association and access to funding.
We acknowledge the recent efforts by FATF, including the amendments to language of Recommendation 8
and the revision of the Best Practices Paper on Recommendation 8, to mitigate unintended consequences
for NPOs.5 However, the misuse of FATF standards persists among member states, necessitating proactive
intervention during mutual evaluation processes.
Considering that the mutual evaluation report drafted by FATF’s assessment team would be placed for
discussion in June 2024, we emphasize the importance of incorporating civil society perspectives into the
final report. Failing to do so may result in a biased and non-transparent evaluation that solely reflects the
government's perspective.
In closing, while acknowledging FATF's ongoing efforts to strengthen the compliance of global mechanisms
against money laundering and terrorist financing with international human rights law, we call on the assessment team and the secretariat to consider the aforementioned civil society reports seriously,
acknowledging the need for a more balanced and representative MER.
Your prompt attention to this matter is crucial in upholding the credibility and transparency of the FATF
evaluation process and ensuring that the legitimate human rights work of NPOs and activists in India
continues.
Sincerely,
