Watchdog to Probe Potential Misuse of Laws Against Civil Society

Newsreel Asia Insight #29
Oct. 30, 2023

As citizens, we want to believe in the sanctity of our laws. They are meant to serve and protect us. But what happens when the very structure that upholds justice becomes an instrument for silencing voices?

In November, the France-based watchdog Financial Action Task Force (FATF) will send a delegation to India to see if the Indian government is misusing laws to suppress civil society organisations, Business Standard reported. It’s not a small concern; it’s about the fabric of democracy itself.

India became an FATF member in 2010. You might wonder why would India, a sovereign nation, willingly invite scrutiny from a global agency like the FATF? And why isn’t any politician or official crying “foreign interference”?

Think of FATF membership like a VIP ticket to a high-stakes global club. When India flashes that card, it’s showing the world that it’s serious about cracking down on financial baddies—money launderers, terror funders, you name it. It’s like a badge of honor in a world often awash in shady cash.

But there’s more. Being in the FATF club is like having the best insurance policy against global financial doom. Countries outside this circle risk getting “blacklisted.” Imagine being the person not invited to the party and then getting publicly shamed for it.

The FATF worries that India’s laws against money laundering and terror financing, initially designed to nail the bad guys, might be misused. For example, regulations in India require non-profits to secure a foreign contribution license, governed by the Home Ministry. The concern is that these laws might be wielded too broadly, catching innocent people or silencing critics in the process.

Organisations like Amnesty International accuse the government of using this provision to cripple non-profits and policy think tanks. Amnesty International even had to shut its offices in India last year, citing “constant harassment.”

Earlier this year, another blow was struck. The Center for Policy Research, a New Delhi-based think tank known for its grassroots research, was stripped of its ability to raise foreign funds. The reason remains ambiguous. But the consequences are clear: the very institution that is meant to critique, assess and guide the government’s policies has been weakened.

Amnesty International also accuses Indian authorities of weaponising FATF’s anti-terrorism recommendations to systematically target civil society groups. A recent report, titled “Weaponizing Counter-Terrorism,” unveils a harsh reality, as reported by The Hindu, which says the Indian government has been accused of twisting global rules to introduce draconian laws aimed at muffling the non-profit sector.

According to Aakar Patel, chair of the board at Amnesty International India, these laws are further exploited to label organisations and activists as terrorists. Thus, blocking them from essential funding.

India has a responsibility to adhere to international standards. But in practice? Over 20,600 non-governmental organisations have seen their licenses cancelled since amendments were made to the Foreign Contribution (Regulation) Act (FCRA) in 2010, nearly 6,000 in 2022 alone.

What is even more alarming is the scale of the impact. A survey by Amnesty International found that most affected organisations had to cut their staff by 50% to 80%. These are groups working on critical issues like minority rights, climate change and poverty. Their struggles are our struggles. If they get silenced, we all lose essential advocates for a better society.

Global bodies label India as an “electoral autocracy” and “partly free.” Our press freedom rankings are plummeting. When such labels stick, they don’t just tarnish a country’s reputation; they leave a lasting scar on the people’s faith in democracy.

As the FATF prepares for its November visit, we must ask ourselves some uncomfortable questions. Are we okay with the erosion of the civic spaces that form the backbone of our society? Or is it time to reclaim the essence of democracy—where laws protect, not persecute?

Let’s not forget, when laws become swords, the wounds inflicted are not just physical but a blow to the very soul of a nation. And healing those wounds? That’s a journey longer and more arduous than any of us can fathom.