India has finally gained membership to the Financial Action Task Force, a global body that chalks policies to counter financial frauds and provides members access to information on suspicious transactions in countries including Switzerland, China, the US and the UK.

The decision to include India as the 34th member country was taken during a FATF plenary session in Amsterdam from June 23-25 and marks the end of India's nearly decade long wait for admission. During this period, India served as an observer at FATF.

"India is now a full member of the FATF. The step is a major development for India and the tax enforcement authorities in dealing with terror financing and comabting money laundering," a senior Finance Ministry officer said.

The Union government and financial enforcement and intelligence agencies of the country like the Financial Intelligence Unit, Enforcement Directorate, Central Economic Intelligence Bureau and Directorate of Revenue Intelligence would be able to exchange financial information from member countries, the officer said.

Other agencies like the Central Bureau of Investigation and the Intelligence Bureau would also be able to route their requests of information for suspicious ransactions and individuals through proper channels, he added.

Present members include Switzerland, the United States of America, China and the United Kingdom.

The membership will also bring increased responsibility on Indian financial institutions and banks to comply with better business practices and strict adherence to reporting of financial transactions including suspicious ones.

"The FATF discussed and adopted the mutual evaluation reports assessing compliance of the Kingdom of Saudi Arabia, India and Brazil, against the international standards for combatting money laundering and terrorist financing ? the 40+9 Recommendations," an FATF statement during the Amsterdam session said.

The FATF discussed and adopted the mutual evaluation report of India. India has been an observer of the FATF since November 27, 2006 and was assessed as an observer country in the context of their request for FATF membership.

The FATF recognises India's efforts and commitment to bring its Anti-Money Laundering (AML) and Combating Financing of Terror (CFT) system intoline with FATF recommendations. The executive summary of the mutual evaluation of India will be published on July 1, 2010, the statement added.

Last year, retrieving black money stashed away in tax havens became an election debating point in the country.

Germany, in May this year, handed over data relating to Indians holding unaccounted money in Liechtenstein-based LGT Bank.