FATF working on enhanced disclosures for credit card and online transactions to combat Money Laundering and Terror Financing
Sep 10, 2024
By Shailesh Yadav
New Delhi [India], September 10 : The Financial Action Task Force (FATF), the global watchdog for money laundering and terror financing, is considering enhanced disclosures for global credit card transactions and online payment gateways to curb illicit activities, according to government sources.
Sources indicate that globally, credit card and online transactions could soon require additional disclosures. The FATF mechanism is expected to push for greater transparency and compliance in efforts to combat money laundering and terror financing via these payment methods.
Currently, the FATF is debating recommendations to mandate more disclosures for both cross-border and domestic transactions.
Discussions include potential requirements such as the recipient's name, banking channel details, and the payment gateway used for cross-border transactions.
Government sources have stated that India supports enhanced transparency in transactions and increased disclosures, while maintaining privacy, transaction speed, and business interests, and without raising compliance costs.
The Indian government and the Reserve Bank of India (RBI) are advocating for more mandatory disclosures and information exchange among FATF member countries. The FATF currently has 39 members.
According to sources, industry players like Visa and MasterCard are also involved in these discussions on disclosures.
However, global payment companies have signaled some resistance and are calling for further consultations before FATF's recommendations are formalized into law.
The industry argues that such disclosures could lead to a loss of clients and an increase in compliance costs.
The FATF is currently consulting with concerned stakeholders, and the next meeting will be hosted by India. An industry meeting with FATF member countries is scheduled to be held in April 2025 in Mumbai, India.
