MLC Daily Current Affairs – 21 September 2024

Today in History (September 21^st, 1992)

The Officers Training School (OTS) women were inducted into the Army as Officers, and the onerous task of training the Lady Cadets of WSES (O) courses commenced at the OTS.

Let’s Revise

A) Which one of the following initiated the UNGA resolution against Israel to withdraw from Palestine?

1. Iran
2. China
3. Palestine
4. Canada

Answer: C)
Rationale: In an emergency special session that resumed today, the General Assembly began its consideration of a draft resolution demanding an end to Israel’s occupation of Palestinian territory within 12 months, as Member States voiced overwhelming support for the text. By the terms of the text (document A/ES-10/L.31/Rev.1), put forth by the State of Palestine.

B) What was the stand of India regarding the UNGA resolution against Israel to withdraw from Palestine?

1. India opposed it
2. India supported it
3. India abstained
4. India initiated this

Answer: C)
Rationale: India was one of 43 countries that abstained, while 124 out of 181 members supported the resolution, which included calls for sanctions against Israel.

C) India previously held simultaneous elections till_____

1. 1990
2. 1967
3. 1989
4. 2014

Answer: B)
Rationale: Simultaneous elections mean holding Lok Sabha and state assembly elections at the same time, aiming to reduce election frequency and costs. India previously held simultaneous elections in 1951-52, 1957, 1962, and 1967, but has not maintained this schedule since.

Summary of Today’s News

Financial Action Task Force (FATF)

Context:
Terror financing watchdog Financial Action Task Force (FATF) has said India has achieved a high level of technical compliance with its recommendations and taken significant steps to implement measures to tackle illicit finance.

India’s Achievement:
• High level of technical compliance with FATF recommendations.
• Significant steps taken to tackle illicit finance.
About FATF:
• Nature: Intergovernmental policy-making and standard-setting body.
• Focus: Combatting money laundering and terrorist financing.
Objectives:
• Establish international standards.
• Develop and promote policies at national and international levels to combat money laundering and terrorism financing.
Origin:
• Established in 1989 during the G7 Summit in Paris.
• Mandate expanded in 2001 to include terrorism financing.
• Headquarters: Paris, France.
Governance:
• Presidency: Led by the FATF President, chosen by the Plenary from its members.
Decision Making:
• The FATF Plenary is the decision-making body.
• Meets three times per year.
• Decisions are taken by consensus in the 39-member group, with any three members able to exercise a “veto” on an action.

FATF Membership and Key Functions

Membership Criteria:
• Countries must be strategically important (e.g., large population, GDP, developed financial sectors).
• Must adhere to global financial standards and participate in key international organizations.
• FATF has 39 members, including the US, India, China, Saudi Arabia, UK, Germany, France, and the EU.
• India became an Observer in 2006 and a full member in 2010.
• Members must endorse and support FATF recommendations and commit to mutual evaluations.
Key Functions:
• Researches methods of money laundering and terrorism financing.
• Promotes global standards to mitigate these risks.
• Assesses the effectiveness of countries’ actions.
• Holds non-compliant countries accountable.
• Countries failing to implement standards may be listed as Jurisdictions under Increased Monitoring or High-Risk Jurisdictions (commonly known as “grey” and “black” lists).

ATF ‘Grey List’ and ‘Blacklist’

Grey List:
• Countries considered safe havens for terror funding and money laundering.
• Serves as a warning that the country may be moved to the blacklist.
Black List:
• Known as Non-Cooperative Countries or Territories (NCCTs).
• Countries that support terror funding and money laundering.
• Regularly revised by FATF, with entries added or removed.
• Currently includes North Korea, Iran, and Myanmar.
Consequences of Being on the Blacklist:
• No financial aid from:

• International Monetary Fund (IMF)
• World Bank
• Asian Development Bank (ADB)
• European Union (EU)

• Subject to international economic and financial restrictions and sanctions:

• Reduction in international trade
• International boycott
• Negative impact on capital inflows, foreign direct investments, and portfolio flows

• FATF Reports:

• Regularly published to raise awareness about money laundering, terrorist financing, and proliferation financing techniques.
• Helps countries and the private sector take necessary steps to mitigate these risks.