The global anti-money laundering watchdog, the financial Action Task Force (FATF) urged India on Thursday to speed up its prosecutions in financial fraud cases.

The ease with which the trade of precious metals and stones can be used to move "large amounts" of funds without leaving an ownership trail shows this sector in India is vulnerable to be used as a tool for money laundering and terrorist financing,

For the non-profit organisations (NPO) sector, the FATF said India should ensure that measures aimed at preventing the sector from being abused for terror financing are implemented.

The Financial Action Task Force has acknowledged India's efforts but called for reducing pending money laundering cases and significant changes in prosecuting terror financing. The report highlights threats from extremist groups and stresses the need for better regulation of non-profits to prevent their misuse for terrorist financing.

FATF also said India has to improve the implementation of cash restrictions by dealers in precious metals and stones as a priority.

FATF urges India to accelerate prosecutions in financial fraud cases, placing India in 'regular follow-up' category.

FATF report on India's AML/CFT system highlights effectiveness but calls for major improvements in prosecution.

The Financial Action Task Force (FATF) has praised India's efforts in combating money laundering and terror financing, urging faster prosecutions in financial fraud cases. The report highlights the need for improvements in prosecution and protection of the non-profit sector from exploitation by terrorist groups.