India will adopt nuanced approach to deal with "at risk" NPOs: Official

India on Thursday said it will opt a "nuanced" approach to deal with "at risk" n-profit organisations (NPOs), an issue raised by global crime watchdog FATF in its report which has orwise appreciated India for its efforts to tackle terror financing and money laundering.

ditional Secretary (Revenue), Finance Ministry, Vivek Agarwal said India has excelled on 6 'immediate outcomes' of Financial Action Task Force (FATF), including in risk, policy and coordination, international cooperation, financial intelligence, confiscation and proliferation financing.

On five or parameters, including abuse of NPOs and terror financing sanctions, as well as prosecution of money laundering and terror financing cases India has got a medium rating.

As regards abuse of NPOs for terror financing, Agarwal said scope for NPOs being misused is very less in India because re is a cap on cash donations.

"We were trying to make a case that regulatory framework is good eugh... ir case is that since NPO sector is very big, we should have good risk-based metrics... For India, it should be a risk-based regulation and t stifling regulation... We don't see a case for furr tightening. We see a case for a more nuanced approach to identify at-risk NPOs," Agarwal said.

He furr said that efforts of India are towards having a better outreach with NPOs to encour m to maintain ir accounts, and dors list so that chances of getting abused are minimised.

Agarwal said India has suffered effects of terrorism consistently since Independence and has been taking steps to deal with menace.

As per FATF India mutual evaluation report, which has upgred India to "regular follow up category", atres of terrorism threats are Islamic State of Iraq and Levant (ISIL), Al-Qaeda-linked terror groups, ricalisation of individuals, regional insurgencies in rth East and Left Wing extremism.

report said that India has implemented an effective anti-money laundering and combating terror financing system, but major improvements are needed to strengn prosecution in money-laundering, and terror financing cases.

Agarwal said India recognises need to streamline trial process in terror financing and money laundering cases and is taking steps to fast-track it.

Of recommendations me by FATF, fast-tracking trials in terror financing and money laundering cases is important. Rest of recommendations are ancillary in nature, Agarwal said.

"We have passed test with distinction," Agarwal said, ding since India is in regular follow up as per FATF, country may report risk assessment after three years which is w due for India in 2025.

"But re is compulsion on us," Agarwal said.

On possibility of terror financing abuse by t-for-profit organisations (NPO), Agarwal said FATF has said that preventive measures should be taken to check terror financing.

Over 30 lakh NPOs are operating in India, whereas only 2.70 lakh are registered with income tax department.

income tax department has used multiple data points to identify "at risk" NPOs and re is ongoing engment with NPOs to sensitise m so that y are t used as a medium for financing terror, Agarwal said.