From UPSC perspective, the following things are important :
Prelims level : FCRA
Mains level : Preventing money laundering
- The Union home ministry has revised its rules on NGOs receiving foreign funding.
New FCRA Rules
- In a notification, the ministry announced the changes in the Foreign Contribution (Regulation) Rules, 2011, which include that individuals need not declare personal gifts to the tune of ₹1 lakh anymore.
- Earlier, gifts worth more than ₹25,000 were required to be declared.
- The office bearers, key functionaries and members of the organizations will have to declare that they are neither prosecuted nor convicted of religious conversion nor charged with sedition.
- It is also mandatory for office bearers and key functionaries and members to certify that they have not been “prosecuted or convicted” for “conversion” from one faith to another and for creating “communal tension and disharmony”.
- Earlier, as per the FCRA 2010, only applicants such as directors who sought permission to receive foreign funds were required to make such a declaration.
- Now, every member of an NGO must, under oath, through an affidavit, declare that they have never been involved in diverting foreign funds or “sedition” or “advocating violent means”.
- Government of India enacted the Foreign Contribution (Regulation) Act (FCRA) in the year 1976 with an objective of regulating the acceptance and utilization of foreign contribution.
- The act was majorly modified in 2010 with several amendments because many NGOs were found using illegal use of foreign funding.
- It is a consolidating act whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies.
- It aims to prohibit funding for any activities detrimental to the national interest and for matters connected therewith.
- In 2016 license of about 20,000 NGOs were cancelled after reviewing their work.