Title: India Cracks Down on Financial Crime: Stricter Regulations and Penalties for Money Laundering

Background

India’s Efforts to Combat Money Laundering

• Growing concerns over money laundering and its impact
• Threatens governance and fair competition in economy
• Establishing the Financial Intelligence Unit (FIU) and international collaborations
• Preserving the integrity of India’s financial system

AML Regulations in India

Prevention of Money Laundering Act (PMLA) (2002)

• Combat money laundering and prevent it
• India is a member of the Financial Action Task Force (FATF)

Expanding the Scope of PMLA (May 9, 2023)

• All individuals involved in company formation required to comply

AML Compliance Sectors

• Banking industry
• Financial institutions
• Financial service providers
• Gaming businesses
• Casinos

Customer Due Diligence (CDD) Requirements

• Adhere to CDD during new customer onboarding
• Determine customer risk levels
• Record and retain customer information
• Conduct AML checks

Financial Intelligence Unit-India (FIU-IND)

• Review and analyze suspicious financial transactions
• Reporting by organizations with AML obligations
• Fight against financial crimes in India

Role of the Reserve Bank of India (RBI)

• Central bank of India
• Economic growth and stability
• Regulatory powers to prevent money laundering

Penalties for Money Laundering

Under the PMLA:

• Imprisonment: 3-7 years (extendable to 10 years)
• Fines: Percentage of laundered funds
• Confiscation of proceeds
• Attachment of properties
• Forfeiture of assets
• Enhanced penalties for repeat offenders

Technological Solutions for AML Compliance

• Advanced technological solutions like Sanction Scanner
• Effortless AML compliance
• Cutting-edge anti-money laundering solutions
• Request a demonstration on website