In a paper for Carnegie India, 2017-2018 Luce Scholar Neil Noronha discusses how improving India’s financial intelligence capabilities could further its foreign policy objectives and help gain international recognition as a rising global power.

As reflected in India’s move from a Neighborhood First policy to an Act East policy, Prime Minister Narendra Modi unequivocally wants India to assume an increased role in world affairs. Such aspirations entail more responsibilities in upholding the peace and prosperity of the world order. One such responsibility is protecting the integrity of the international economic system from illicit threats, such as corruption, money laundering, counterfeit currency smuggling, and tax evasion.

Financial intelligence is a field within the purview of the central government that helps Indian law enforcement and intelligence agencies understand the nature, capabilities, and intentions of entities of interest so as to identify such threats. Activities in this field include the collection, receipt, analysis, collation, and dissemination of intelligence, both foreign and domestic, related to financial services, taxes, international trade, and foreign and domestic currency.

New Delhi understands that protecting the integrity of the international economy is not a job for one country only; all states participating in this system must contribute and cooperate with one another. However, many countries do not have sufficient infrastructure or technology to monitor illicit financial threats within their own economies. Thus, through its membership in and sometimes chairmanship of various regional bodies, India has sought to empower its neighboring countries to develop and mature their own capabilities and financial intelligence apparatuses. In turn, it has become a leader in this field within the South Asian region.

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