India Anti-Money Laundering Survey 2009
With an increase in globalisation and the growth of India’s exposure to cross border business, Indian financial institutions are being exposed to the threat of money laundering more than ever before. This has led to significant changes in the financial and regulatory environment to support Global AML efforts in India. The Prevention of Money Laundering Act, 2002 (PMLA 2002) was enacted and the detailed rules were framed there under (PMLA rules 2005 - came into force from July 1, 2005).
AML legislation in India
The Prevention of Money Laundering Act, 2002 (PMLA 2002) was enacted and the detailed rules were framed there under (PMLA rules 2005 - came into force from July 1, 2005). Under the provisions of the Act, Financial Intelligence Unit - India (FIUInd) was set up as an apex body for coordinating India’s AML efforts.
Attitude towards AML regulations in India
The AML Survey 2009 indicated a positive attitude towards AML regulations where 79 per cent of respondents believe that the level of burden placed upon them is acceptable. However, only 45 per cent of respondents feel that the existing requirements are sufficiently geared to address money laundering risks and 34 per cent felt that it could be better focused.
Policies and Procedures
With the Prevention of the Money Laundering Act (PMLA) coming into force from 2005, financial institutions in India have travelled a long way. However, Global AML legislation and regulations continue to have their influence in India, this is evident from the increasing number of organizations which are adopting global best practice standards.
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