New Delhi. Financial Action Task Force (FATF), a global agency monitoring money laundering and terrorist funding, wants to bring more transparency in online and credit card transactions and initiatives have already begun in this direction.
According to Finance Ministry sources, FATF wants that when a transaction is done through a credit card, complete information of both the spender and the recipient should be easily available.
A system should be developed that can help in getting information about the person making the transaction and the recipient in real time whenever required. Many credit cards are not even linked to a bank account, so complete information about the spender is not always easily available.
Credit card charges may increase in future
According to Finance Ministry sources, the regulator is in talks with the companies operating credit cards in India regarding this and the credit card companies will bear the cost of this change. This may increase the credit card charges in the future.
According to the Finance Ministry, the speed of transactions will not be affected by the changes being made to bring transparency. Currently, the credit card mainly has the name of the user and the country can also be traced from their number.
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According to the Finance Ministry, FATF also wants to increase transparency in online transactions during foreign travel and India is also in favour of this. Currently, there are many payment aggregators whose standards need to be raised and efforts are being made to bring all of them under the regulatory purview. These aggregators are not as transparent as banks. RBI is working in this direction.
According to the Finance Ministry, India has also started trying to bring transparency in those non-financial institutions through which financial transactions are done indirectly at the global level. According to the Ministry, financial exchange takes place at the global level through institutions like jewellery purchase and sale, casinos, chartered accountant firms etc.
India is a victim of terrorist funding
FATF is a group of 40 countries and countries that do not follow its recommendations can face financial sanctions at the global level. This group evaluates the financial system of member countries. On September 19, FATF is going to release a report on the evaluation of India’s financial system.
India will play an important role in stopping terrorist funding. According to Finance Ministry sources, India is going to play a leading role in stopping terrorist funding at the global level from the platform of FATF. According to the Finance Ministry, India has been a victim of terrorist funding and India has worked a lot on the model of terrorist funding and has also achieved success in stopping this type of funding.
Pakistan was put on the grey list by FATF
India will give the world a model of those examples and other measures to stop terrorist funding. It was India that had informed FATF about the terrorist funding happening in Pakistan, after which Pakistan was put on the grey list by FATF.
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