India Weaponizing Terror Financing, Money Laundering Laws Against NGOs

The FATF (Financial Action Task Force FATF) is an intergovernmental organization established in 1989 by the Group of Seven (G-7) countries, that leads a global action to tackle money laundering and terrorist and proliferation financing. FATF’s Mutual Evaluation Review (MER) was scheduled for 3 Nov. Beforehand, a 46-page shadow report compiled by anonymous civil society actors was forwarded to the FATF by the Global NPO Coalition. The report shows India has weaponized its laws – the Unlawful Activities (Prevention) Act, Prevention of Money Laundering Act, and Foreign Contribution (Regulation) Act – to target and stifle its non-profit organizations (NPOs). In India, NPO is referred to as NGO – Non Government Organization. The shadow report, based on interviewing representatives of over 700 NGOs and field experts, finds that the Indian government – without involving or informing NGOs about the ways of the FATF – has been indiscriminately targeting them on ‘unproven’ and ‘frivolous claims.’ The MER would be followed by a FATF plenary discussion in June 2024. In 2010, the MER specifically noted that India had no comprehensive assessment of its financial institutions. It also recommended India undertake a detailed risk assessment of the NPO sector for terrorist financing. 13 years later, India has not made public whether or not it has carried out any work to identify such risks in the NPO sector. Three rights organizations – Amnesty International, Human Rights Watch, and Security Network – in a joint statement said that India's actions have flouted both FATF’s standards and international human rights law.