India-US Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Dialogue

December 15, 2023

India and the United States have reaffirmed their commitment to collaborating on addressing global illicit finance risks. The joint statement follows the India-US Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Dialogue, co-chaired by India’s revenue secretary Sanjay Malhotra and US Treasury under-secretary for terrorism and financial intelligence Brian Nelson.

Focus on Accelerating Global AML/CFT Standards

Both parties acknowledged the “pressing need” to expedite the global implementation of AML/CFT standards for virtual assets in line with Financial Action Task Force (FATF) recommendations. The aim is to effectively address regulatory arbitrage, with a focus on responsible innovation while mitigating illicit finance risks.

Deliberations on Virtual Assets and Service Providers

Participants in the dialogue discussed their experiences with virtual assets and service providers, emphasizing responsible innovation while mitigating illicit finance risks. This dialogue occurred in the context of G20 leaders broadly endorsing a roadmap for dealing with crypto assets, incorporating tailor-made measures for emerging markets and developing economies.

Transparency in Beneficial Ownership

India and the US explored efforts to enhance transparency in beneficial ownership, including the implementation of beneficial ownership registries, tools to improve data quality, and verification of information. The statement highlights the importance of tracking the flow of funds and identifying those responsible for them to combat money laundering and financial crimes.

Challenges in Enforcing Sanctions

Talks also covered the challenges each jurisdiction faces in enforcing sanctions. Both delegations identified key areas in AML and countering the financing of terrorism for further bilateral cooperation. The commitment extends to convening the dialogue again next year to build on progress and continuing technical-level discussions to advance shared priorities.

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