India — Country Risk Report

India (Asia Pacific • South Asia). Risk report as of the 19 Jun 2026 FATF plenary.

Moderate country risk, with elevated corruption risk. India's country risk score is 3.5/10, placing it in the moderate-risk band. The principal driver is weak corruption, alongside political stability risk. India is not currently FATF grey- or black-listed. India is not subject to comprehensive country-wide sanctions. Firms should apply additional scrutiny where exposure involves state-linked entities, restricted sectors, sensitive technology, dual-use goods or politically exposed counterparties.

Recommended treatment

Standard due diligence, with enhanced checks for defined risk triggers.

At a glance

  • FATF status: Not currently listed (one indicator only; it does not set the overall country risk rating by itself)
  • Comprehensive country sanctions: none identified. Targeted sanctions exposure: possible, screen applicable persons, entities and sectors
  • Government effectiveness and rule of law: 4.7/10
  • Corruption (CPI 2025): 39/100, rank #91 of 182
  • Enforcement: 408 actions from 1 regulator

Country Risk Score: 3.5/10 (Moderate)

Higher score means higher country risk (global average 4.6). Full information available. Strong data coverage. Enforcement activity and CPI are shown for context but do not change the score.

All three parts of the score are available.

How this score was calculated

  • Financial crime controls: 4.2/10 — 50% of this score
  • Government effectiveness and rule of law: 4.7/10 — 30% of this score
  • International sanctions: 0.0/10 — 20% of this score

International sanctions contributes 0.0 because the complete UN, UK, EU and US review found no direct country-level sanctions programme. People or organisations connected to the country may still appear on sanctions lists.

Show the exact calculation

aml 4.2 × 50% + governance 4.7 × 30% + sanctions 0 × 20% = 3.5; final 3.5

Principal risk drivers

  • Corruption (WGI) — 5.8/10

Mitigating factors

  • Not currently on the FATF grey or black list.
  • No comprehensive country-wide sanctions programme.
  • Comparatively stronger rule of law and institutions (4.4/10).
  • Risk is concentrated in specific counterparties, sectors and transactions rather than applying uniformly.

Business impact

  • Customer onboarding (Medium): Additional ownership and control verification may be required.
  • Payments and transactions (Medium): Review transaction purpose, counterparties and geographic routing.
  • Trade and export activity (Medium): Screen goods, end users and potential dual-use exposure.
  • Corporate clients (Medium): Assess state ownership, government links and political exposure.
  • Ongoing monitoring (Medium): Apply alerts for ownership changes, sanctions and geopolitical developments.

Recommended controls

  • Verify ultimate beneficial ownership using more than one reliable source.
  • Identify state ownership, government influence and politically exposed persons.
  • Screen entities, directors and beneficial owners against applicable sanctions lists.
  • Apply enhanced review to technology, defence, telecommunications, financial services and dual-use activity.
  • Document transaction purpose and source of funds where cross-border structures are complex.
  • Escalate unresolved ownership opacity or adverse information to Compliance.

Enhanced due diligence triggers

  • State ownership / control
  • PEP involvement
  • Sensitive / restricted sectors
  • Opaque ownership
  • Adverse media
  • Dual-use goods & technology
  • High-risk intermediary routing

FATF status: Not currently listed

India is not on the FATF grey or black list as of the 19 Jun 2026 plenary.

Source details

International sanctions by issuing body

  • UN: No
  • EU: No
  • UK: No
  • US: No

No means the complete UN, UK, EU and US review found no direct country-level programme. People or organisations may still appear on sanctions lists.

Government effectiveness and rule of law (World Bank 2024, percentile)

  • Government Effectiveness: 59/100
  • Regulatory Quality: 53/100
  • Rule of Law: 56/100

Enforcement activity

RegActions tracks 408 enforcement actions from 1 regulator in India.

The composite RegActions Country Risk Score does not use enforcement volume.

Regulators and legal framework

FATF network

FATF member.

Last mutual evaluation: 2024 · report

National regulators

FIU: Egmont Group member (FIU-IND)

Framework signals

  • FATF listing: Not currently listed
  • International sanctions: no listed programme identified
  • BO register: Restricted (live since 2018)
  • Corruption (CPI 2025): 39/100, rank #91 of 182
  • Rule of law (WGI): 4.4/10 risk

Sector exposure

  • Banking & payments (Low): No FATF listing, rule-of-law governance within normal range
  • Trade & export controls (Low): No sanctions programme or FATF black-list constraint identified
  • Crypto & virtual assets (Low): No FATF listing, accountability governance within normal range
  • Real estate & luxury assets (Elevated): Elevated corruption exposure (CPI 39/100)
  • State-linked & procurement (Low): Political-stability and corruption governance within normal range

Derived from sanctions tier, FATF listing, World Bank WGI governance and CPI; no per-sector dataset is asserted.

India: analysis

India's profile is driven primarily by elevated corruption risk, with political stability (moderate) and voice and accountability (moderate) also contributing at moderate levels. Rule of law (moderate) is somewhat stronger. The CPI reading confirms that corruption remains a structural concern. No FATF listing or sanctions apply. The presence of 408 SEBI enforcement actions across 2022 to 2026 signals active regulatory activity and may indicate both regulatory maturity and underlying market-conduct risk.

Outlook

India's enforcement trajectory suggests a strengthening regulatory environment in the securities sector. However, corruption and institutional risks remain structurally embedded and are unlikely to resolve quickly. Firms should factor in SEBI's active enforcement stance when assessing securities-sector counterparties, while maintaining enhanced due diligence on politically exposed persons and high-value transactions.

Key watchpoints

  • Monitor SEBI enforcement action trends, given 408 tracked actions between 2022 and 2026.
  • Track CPI trends and domestic anti-corruption reform progress, particularly in public procurement and state-level institutions.
  • Assess beneficial ownership structures involving politically exposed persons given the corruption elevated risk rating.
  • Review AML/CFT compliance requirements in the banking and financial services sectors, where regulatory expectations continue to evolve.

Assessment currency

  • FATF status: Not listed (as of 19 Jun 2026)
  • Sanctions exposure: None identified (as of Jul 2026)
  • Governance (WGI): Latest dataset incorporated (as of 2024)
  • Corruption (CPI): 39/100 (as of 2025)
  • RegActions assessment: Reviewed (as of 19 Jun 2026)

Public evidence layer

FATF action: none. No FATF call-for-action or increased-monitoring status was identified at the latest plenary. This does not establish low risk.

Contextual signals (not scored)

  • FATF network membership: Direct FATF member (present, as of 2026-07)
  • EU non-cooperative tax jurisdictions: Not listed in Annex I (absent, as of 2026-02-17)
  • Egmont Group FIU: FIU-IND (present, as of 2026-07-17)
  • Beneficial-ownership register: Restricted (live since 2018) (present, as of 2026-07-17)
  • Transparency International CPI: 39/100, rank 91 (present, as of 2025)

Evidence freshness

  • FATF monitored-jurisdiction status: current; data 2026-06-19
  • FATF mutual evaluation and follow-up ratings: current; data 2026-07-31; follow-up 2024-09; base assessment 2024-09
  • World Bank governance indicators: current; data 2024
  • UN, UK, EU and US sanctions regimes: current; data 2026-08-13

Contextual signals are public evidence only and do not change the immutable v2 score.

Download evidence PDF · CSV · JSON

Regional peer scores

FAQ

Is India on the FATF grey list?

No. India is not on the FATF grey or black list as of the 19 Jun 2026 plenary. FATF listing is one AML indicator; absence from the list does not by itself make India low risk. The next FATF plenary review is scheduled for Oct 2026.

Is India subject to sanctions?

No country-level programme was identified. In the approved RegActions snapshot, no comprehensive or targeted country-wide sanctions programme was found for India, but individual listed persons may still exist, so firms should continue to screen counterparties against the applicable lists.

What is India's country risk rating?

RegActions rates India at 3.5/10 (Moderate risk), where a higher score means higher country risk. The score combines financial crime controls, government effectiveness and rule of law, and international sanctions. Transparency International's 2025 Corruption Perceptions Index scores India 39/100 (rank #91 of 182).

What due diligence applies to India?

Standard due diligence, with enhanced checks for defined risk triggers. This is decision-support based on India's FATF status, governance and sanctions signals, and is not a substitute for a firm's own risk assessment.

How much enforcement activity is tracked for India?

RegActions tracks 408 enforcement actions from 1 regulator in India. Enforcement volume measures regulator activity, not country risk, so it is shown as evidence but never fed into the RegActions Country Risk Score.

Source: FATF black & grey lists · World Bank WGI (CC BY 4.0 — World Bank WGI) · TI CPI (CC BY-ND 4.0 — Transparency International, display only)