Culture Secretary Vivek Aggarwal is new FATF Vice-President, Pg10

Key Highlights:

• Union Culture Secretary Vivek Aggarwal has been appointed as the next Vice-President of the Financial Action Task Force (FATF) for the 2026-2027 term.
• This marks the first time India will hold the Vice-Presidency of the global anti-money laundering and counter-terrorist financing watchdog.
• Aggarwal will succeed Giles Thomson, who has served as FATF Vice-President since July 1, 2025.
• His selection is considered a significant development for India's role in global financial governance.

Detailed Insights:

• The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 by the G7 to combat money laundering, with its mandate expanded in 2001 to include terrorist financing.
• India became a full member of the FATF in 2010, demonstrating its commitment to global financial security.
• Vivek Aggarwal previously headed India's delegation to the FATF and served as the Director of the Financial Intelligence Unit (FIU).
• His appointment is seen as a major diplomatic and strategic win for India, strengthening its influence in shaping global efforts against financial crimes.
• India's recent Mutual Evaluation Report in 2024 lauded its anti-money laundering and counter-terrorist financing (AML/CFT) framework for achieving good results.
• The FATF Vice-President assists the President in steering the organization's work and advancing its mission to combat illicit financial activities worldwide.

Key Concepts Involved:

• Financial Action Task Force (FATF): An intergovernmental body established by the G7 in 1989 to set international standards and promote effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and other threats to the global financial system.
• Money Laundering: The process of concealing the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
• Terrorist Financing: The provision of funds or financial services to support terrorist acts or organizations.
• Mutual Evaluation: A peer review process conducted by the FATF to assess how effectively a country complies with its recommendations and implements its AML/CFT framework.