AML Implementations Extend Beyond Compliance

The US-led initiative to curb illegal money trade, fraud and money laundering activities is starting to catch on here in India as well. Majority of Indian banks and financial services entities are fast embracing Anti-Money Laundering technologies to counter such threats, as also to become compliant with the norms laid down by regulatory bodies such as the RBI. Highlighting the role of banks and financial institutions in dealing with money laundering instances, K. G. Bhandari, senior vice president, Head Risk Management, IndusInd Bank said, “In today’s highly evolved banking landscape, banks especially larger ones with geographically dispersed locations often have a hard time keeping a track of where the money laundering transaction is taking place. As opposed to looking at AML implementations strictly from a regulatory perspective and for demonstrating compliance, banking and their financial brethrens are now embracing AML solutions more strategically.” “Banks and financial institutions are now starting to think in terms of how they can leverage AML solutions to exploit business benefits that extend beyond basic regulatory compliance. “This ability can also assist banks in establishing a strong enterprise-wide risk management practice as the information gathered via the KYC and the AML engines which evaluate transactions at deeper levels can be used to have a “single view” on customer activity,” said Sanjeeva Murthy B K, VP " Compliance, Kotak Mahindra Bank.