Full formBanking & Finance
CFTstands forCombating the Financing of Terrorism
Full Form of CFT
What is CFT?
Combating the Financing of Terrorism (CFT) refers to a set of policies, laws, and regulations designed to prevent and suppress the flow of funds to terrorist organizations. In India, CFT is a critical component of the financial regulatory framework, enforced primarily by the Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU-IND). It is closely linked with Anti-Money Laundering (AML) measures, and together they form the AML/CFT compliance regime that banks, financial institutions, and intermediaries must adhere to. CFT involves monitoring suspicious transactions, customer due diligence, and reporting to authorities. The Prevention of Money Laundering Act (PMLA), 2002, and the Unlawful Activities (Prevention) Act (UAPA) provide the legal backbone for CFT in India. India is also a member of the Financial Action Task Force (FATF), which sets international standards for CFT. The term is commonly used in banking exams such as RBI Grade B, JAIIB, and CAIIB, where candidates are tested on AML/CFT guidelines and India's compliance with FATF recommendations.
CFT का फुल फॉर्म
आतंकवाद के वित्तपोषण का मुकाबला
Example
The bank's annual audit confirmed that all branches are fully compliant with the latest AML and CFT guidelines issued by the RBI.
CFT — frequently asked questions
What is the full form of CFT?
The full form of CFT is Combating the Financing of Terrorism.
How is CFT different from AML?
While AML focuses on preventing money laundering from criminal activities, CFT specifically targets the financing of terrorist acts. In practice, they are often combined as AML/CFT framework.
Which Indian laws govern CFT?
In India, CFT is primarily governed by the Prevention of Money Laundering Act (PMLA), 2002, and the Unlawful Activities (Prevention) Act (UAPA), along with guidelines issued by the RBI.