GENEVA: Amnesty International has accused the Indian government of exploiting the recommendations of the Financial Action Task Force (FATF), a global watchdog on terrorism financing and money laundering, to crackdown on civil society groups and activists.
In a briefing titled “Weaponizing counter-terrorism: India’s exploitation of terrorism financing assessments to target civil society,” Amnesty International detailed how the Indian authorities have abused FATF recommendations to enact draconian laws aimed at suppressing non-profit organizations.
India exploits FATF standards to target civil society: Amnesty https://t.co/9fCPrPUikt
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These laws have been used to bring terrorism-related charges and to hinder organizations and activists from accessing crucial funds. Amnesty International called on FATF to hold the Indian authorities accountable for their misuse of these recommendations, asserting that India’s actions not only violate FATF standards but also international human rights laws.
Under the pretext of combating terrorism, the Indian government has utilized FATF’s recommendations to strengthen its financial and counter-terrorism laws, which are frequently misused to silence critics. Amnesty International highlighted that India’s Non-Governmental Organizations (NGOs) require a “foreign contribution license” under the Foreign Contribution (Regulation) Act (FCRA) to access foreign funds.
The introduction of the FCRA bill in 2006 coincided with India becoming an observer state of FATF. Amendments were made to the act in 2010 to improve India’s “non-compliant” status. However, in the last decade, over 20,600 NGOs have had their licenses canceled, with nearly 6,000 of these cancellations occurring since the start of 2022.
Amnesty International’s survey found that 11 out of 16 NGOs, focusing on issues related to minorities, marginalized groups, and climate change, confirmed the arbitrary revocation of their foreign contribution licenses through suspensions, cancellations, and non-renewals. These organizations cited vague reasons from authorities, including allegations of “bringing disrepute to public institutions” and “working against public or national interest.”
The impact has been significant, with most groups reporting staff reductions of 50 to 80 percent, severely affecting their work. Amnesty International emphasized that the 2020 and earlier amendments to the FCRA do not align with FATF’s Recommendation 8, which requires countries to target only those NGOs identified as vulnerable to terrorism financing abuse through a risk-based analysis.
India Ignores FATF Preconditions for Membership: Amnesty International
None of the NGOs Amnesty International spoke with underwent a “risk-assessment” by the Indian government, contrary to FATF’s guidelines. Moreover, the Prevention of Money Laundering Act, 2002 (PMLA), and amendments to the Unlawful Activities (Prevention) Act (UAPA), India’s primary counter-terrorism law, were preconditions for India becoming a FATF member.
However, United Nations special rapporteurs have repeatedly criticized the broad provisions of UAPA, which violate international human rights laws and contradict FATF principles. The Indian authorities have applied these laws discriminatorily against dissenting voices, leading to detentions without trial on allegations of “funding terrorism.”
PMLA has also been used against Amnesty International, forcing the organization to suspend its operations in India in September 2020.
