RBI Governor Calls for Surgical Precision in AML Laws

RBI governor Sanjay Malhotra emphasized the need for anti-money laundering (AML) laws to target illegal activities with surgical precision, avoiding blunt measures that inadvertently affect honest citizens. This statement comes amid complaints from customers about accounts being frozen due to periodic KYC requirements.

Strengthening India's AML-CFT Framework

Malhotra highlighted the role of the Central KYC Records Registry (CKYCR), with over 1 billion records, in transforming customer onboarding by streamlining identification processes. He noted the strengthened AML-CFT framework through collaboration among financial institutions, regulators, and government agencies.

Emerging Threats and the Role of the Private Sector

The governor warned of increasingly sophisticated threats from money laundering and terror financing, driven by technological advancements. He stressed the private sector's vital role in securing financial systems and the importance of continuous refinement of AML and CFT measures.

Malhotra also cautioned against stringent compliance requirements creating barriers for genuine businesses and individuals, advocating for laws that precisely target illicit activities without harming the honest.