Sanjay Mishra is the Director of India’s Enforcement Directorate (ED), which is responsible for enforcing economic laws and fighting financial crimes in the country. According to recent news, the Indian government has informed the Supreme Court that Mishra will be leaving his position in November, coinciding with the conclusion of an evaluation by the international financial watchdog, the Financial Action Task Force (FATF).
The FATF is an intergovernmental organization that was established in 1989 to combat money laundering, terrorist financing, and other financial crimes. The organization sets standards and monitors countries’ compliance with them. The FATF evaluates each member country’s anti-money laundering and counter-terrorism financing (AML/CFT) measures to ensure they are effective and comply with international standards. The FATF also identifies countries that do not have adequate AML/CFT measures in place and recommends actions to address the deficiencies.
India has been under review by the FATF since 2020 to determine whether its AML/CFT measures meet the international standards. The review is a crucial exercise as it will determine whether India remains on the FATF’s ‘grey list’, which identifies countries with deficiencies in their AML/CFT measures. If the FATF finds that India has not made enough progress in addressing the identified deficiencies, it could result in further economic sanctions, which would be detrimental to India’s economy.
Mishra’s departure in November may have implications for the ED’s work in combating financial crimes in India. As the head of the ED, Mishra played a crucial role in the agency’s efforts to enforce economic laws and prevent financial crimes. However, it is unclear why Mishra is leaving his position, and the Indian government has not provided any reasons for his departure.
The FATF exercise is a critical evaluation of India’s AML/CFT measures, and Sanjay Mishra’s departure in November, coinciding with the conclusion of the evaluation, could have implications for India’s efforts to combat financial crimes.