FATF hails India's digital stack

The latest edition of FATF's 'Money Laundering National Risk Assessment Guidance' recognised India's financial inclusion mechanism of combining Aadhaar identification, Jan Dhan accounts and mobile numbers (popularly known as JAM trinity) as an effective tool for formalising financial transactions.

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“Significant transactions in the informal economy in India happen in cash. Based on India's assessment of the risks associated with cash, India introduced policies (known as Jan Dhan, Aadhaar and Mobile) to encourage use of the formal financial system. These policies expanded affordable access to bank accounts and other financial services, using a biometric identification system and supported the development of a digital mobile payment system,” the FATF document published earlier this month said.