India is recognized as a high-risk region for money laundering, necessitating the Indian government’s adoption of effective Anti-Money Laundering (AML) measures in conjunction with its growing economy. Failing to implement the necessary measures results in an increase in money laundering crimes within India, thereby undermining the country’s reputation on the international stage.

The Indian government has demonstrated awareness of the money laundering risks faced by the country over time. To safeguard against such risks, the Indian government has established laws and legal frameworks. In 2002, India introduced the Prevention of Money Laundering Act, recognizing the insufficiency of previous laws and regulations in combating money laundering. This act was enacted to address and prevent money laundering activities. Furthermore, India is a member of the Financial Action Task Force (FATF), a global organization dedicated to combating money laundering worldwide. The FATF publishes AML guidelines to enhance countries’ ability to effectively combat financial crimes. Member states of the FATF are required to align their AML regimes with the FATF’s recommendations.

In accordance with the provisions outlined in the Prevention of Money Laundering Act, the banking industry, financial institutions, financial service providers, gaming businesses, and casinos are obliged to uphold Anti-Money Laundering (AML) compliance. These organizations are required to incorporate customer due diligence measures during the customer onboarding process. Customer due diligence assists in assessing the level of risk associated with each customer. Additionally, these organizations are responsible for documenting and retaining customer information. They must conduct AML checks, identify any suspicious transactions carried out by customers, and promptly report such activities to the authorized entities.In accordance with the provisions outlined in the Prevention of Money Laundering Act, the banking industry, financial institutions, financial service providers, gaming businesses, and casinos are obliged to uphold Anti-Money Laundering (AML) compliance. These organizations are required to incorporate customer due diligence measures during the customer onboarding process. Customer due diligence assists in assessing the level of risk associated with each customer. Additionally, these organizations are responsible for documenting and retaining customer information. They must conduct AML checks, identify any suspicious transactions carried out by customers, and promptly report such activities to the authorized entities.