Anti Money Laundering Policy
An amount 13 times larger than the country's foreign debt - USD 1500 billion has been alleged to have been laundered
by Indians in Swiss banks* – an issue raised even during the recently concluded Parliamentary elections. Anti-Money
Laundering (AML) has become a serious issue due to the possibility of such funds being used for terrorist financing,
apart from the revenue loss to the government.
The Reserve Bank of India’s (RBI) seriousness in this matter can be gauged from the fact that it significantly delayed the
banking license of and stalled a mutual fund acquisition by a Swiss bank, on its reluctance to cooperate with Indian
authorities to unravel a trail of funds involving racehorse owners and Saudi arms dealers.
India now has a specific money laundering law in the ‘Prevention of Money Laundering Act, 2002’ (PMLA) and its
intention is to become a full member of the Financial Action Task Force (FATF). This, therefore, is the right time to
assess the state of AML in India. World-Check and BMR Advisors have conducted this survey among AML practitioners
in India with the objectives of:
- Highlighting major issues and challenges being faced by the AML community;
- Gaining an insight into the approach taken by organisations to comply with these regulations;
- Assessing organisations’ readiness to meet current (and expected) AML requirements; and
- Understanding the priority of AML for senior management and key stakeholders.