News Analysis

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24^th October 2020 News analysis

(The Hindu+ The Indian express)

> Context: Pakistan to stay on FATF grey list till 2021 – Proposal for on site inspection fails

Prelims (International relations)

What is FATF?

• FATF is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001, its mandate was expanded to include terrorism financing.
• The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

What is grey list?

• FATF grey list constitutes countries that are considered as a safe haven for terror funding and money laundering. Though, inclusion in the list is not as severe as being black listed. It is a warning to the country to tackle the issues.
• The current FATF grey list, issued on 21 February 2020, includes the following countries: Albania, the Bahamas, Barbados, Botswana, Cambodia, Ghana, Iceland, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Pakistan, Panama, Syria, Uganda, Yemen and Zimbabwe.

What is black list?

• The FATF blacklist, now called the “Call for action” was the common shorthand description for the Financial Action Task Force (FATF) list of “Non-Cooperative Countries or Territories” (NCCTs).
• If country get blacklisted then international financial institutions will not deal with that country.
• So far, only two countries have been blacklisted, they are Iran and North Korea.

> Context: A mistake to have left Quad, says Australia

Prelims (International relations)

What is QUAD?

• The Quadrilateral group or the Quad is an informal group which includes the trade spokesmen of the United States, Japan, Canada, and the European Union.
• It was first suggested during a private meeting during the 7th G7 summit in July 1981.

Mains (GS-II : India and its neighbourhood- relations)

[Views put forward by Australian High Commissioner to India Barry O’Farrell]

• Withdrawing from Malabar that became a stumbling block, and that was not forgotten in terms of reassembling Australia as part of the exercise.
• Australia’s policy does not envision formalising the grouping(QUAD)  in any way.
• We have a positive agenda for the Quad, which is about shaping the neighbourhood in which we live, you know, a free, open and resilient Indo-Pacific, one where, you know, rules and norms apply and one where any disputes are resolved according to international law.
• I understand and recognise and
  respect India’s decision on RCEP, and no one is forced to sign up to the agreement. It’s no secret that Australia was keen for India to be part of it. In the meantime, Australia will continue to engage with India bilaterally on a Comprehensive Economic Cooperation Agreement (CECA).

Effects of Australia’s inclusion into the Malabar?

• This may provoke China & may compelled them to take decision inconvenient for India.
• This can be a check on china in Indo Pacific region.
• QUAD will be fully integrated in maritime domain in Indo Pacific region.
• It will bolster the ability of India, Australia, Japan and the United States to work together to uphold peace and stability across the region.

>Context:  Former NCALT chairperson joins advisory board of the group he once hauled up

Prelims (Economy)

What is NCLT?

• The National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to Indian companies. The tribunal was established under the Companies Act 2013.
• It was constituted by govt based on the recommendation of the V. Balakrishna Eradi committee on law relating to the insolvency and the winding up of companies.
• All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements, reconstructions and the winding up of companies shall be disposed off by the National Company Law Tribunal.
• The National Company Law Tribunal is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.

What is NCLAT?

• The National Company Law Appellate Tribunal (NCLAT) is a tribunal which was formed by the Central Government of India under Section 410 of the Companies Act, 2013.
• The tribunal is responsible for hearing appeals from the orders of National Company Law Tribunal (NCLT).
• The tribunal also hears appeals from orders issued by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
• It also hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India (CCI).

> Context: The Central Vigilance Commission has amended the Standard Operating Procedure (SOP) on adoption of “Integrity Pact” in government organisations for procurement activities, and restricted the maximum tenure of Integrity External Monitors (IEMs) to three years in an organisation.

Prelims (Polity)

About the CVC:

• The Central Vigilance Commission is an autonomous and statutory body.
• It is charged with monitoring all vigilance activity under the Central Government of India, advising various authorities in central Government organizations in planning, executing, reviewing and reforming their vigilance work.
• The Commission shall consist of:
  • A Central Vigilance Commissioner – Chairperson
  • Not more than two Vigilance Commissioners – Members
• They are appointed by the president.
• A committee of PM + Home minister + leader of opposition Lok Sabha gives recommendation to president.
• They occupy post till age of 65 yrs or 4 year term.
• Removal is done by President.
• CVC is treated as an advisory body only as Central Government Departments are free to either accept or reject CVC’s advice in corruption cases.
• The Commission has no jurisdiction over private individuals and organisations of the State Governments.