STRONG MEASURES SUGGESTED FOR ROOTING OUT CORRUPTION IN INDIA
Corrupt politicians and officials have been the bane of India for decades. Even as this breed embed themselves in different political outfits stashing their ill-gotten gains at home and abroad, the recent recommendations by the Financial Action Task Force (FATF) for India seeking to beef up the scrutiny of such tainted persons, is welcome. The FATF is a global action force to check money laundering.
Calling a spade by no other name, these black sheep has been rightly dubbed to be Politically Exposed Persons (PEPs). And the recommendation of taking a long hard look into their bank accounts is a crucial step to combat corruption and enhance transparency of the financial system.
India has taken big strides in aligning with global anti-money laundering standards. In this backdrop, the FATF’s focus on domestic political figures seems to be part of a frontal attack on those bleeding the national economy. FATF report underlines the need for addressing persistent vulnerabilities in the system since politicians and government officials weild considerable political influence.
Their financial transactions are often intertwined with public duties. Proximity to power can make them susceptible to corruption. The risks of succumbing to greed always exist. India has to take proactive steps in mitigating risks when the PEPs bank accounts are subjected to a tooth comb search.
The FATF has called for more rigorous monitoring of the sources of funds in the PEPs’ bank accounts. Senior managers’ approval being recommended for opening new accounts of PEPs is a pointer to the need for heightened vigilance. It is a step to prevent abuse. No harm in a double check.
India has implemented stringent banking checks on foreign accounts of political figures. It is an indication of the country’s awareness of the risks these politicians pose to the financial system. FATF report underlines that corruption is deeply rooted in domestic politics in India and this needs the scrutiny of the bank accounts of Indian politicians, officials and their families.
And sooner it is done, the better. Known for their resourcefulness, these individuals can go to great lengths to hide the money which they have not earned.
The FATF recommendations have been made to ensure that the financial system is not being exploited for personal gains by some of those in positions of power. One has to mark the timing of these recommendations. Several state elections are round the corner and the politicians are expected to spend funds from their ill-gotten wealth.
Meanwhile, the powers that be have to face a challenge of balancing the need for transparency with the potential for misuse of these regulations post implementation. It is no easy task as the defaming a political opponent especially an honest one has a lure of its own.
Fairness and impartiality are essential pre-requisites before implementation of the FATF recommendations. Otherwise, they could be used to tarnish reputations of political opponents voicing dissent.
Recommendation of scrutiny of domestic political figures is not to be overlooked and is to be implemented forthwith. It is a significant step to ensure that the Indian financial system remains clean and robust. (IPA Service)
