Country Coverage
AML/CFT Legislation in India
flag of india

AML/CTF compliance in India

MemberCheck's solutions in India​
PEP and Sanction Check
Scan your clients aga inst global PEP & Sanction data sources.
Learn More
Adverse Media Check
Keep up to date on risks your clients face by using reliable worldwide media.
Learn More
Customer Identity Verification
Avoid prosecution, verify the identification of your Indian customers.
Learn More
AML Consulting Service
Work with our accredited consultants to assess the money laundering and terrorism financing risk to your business.
Learn More
Jurisdictional Risk Checks
You can ensure compliance and protect your business with our expert Jurisdictional Risk Checks service.
Learn More
Compliance as a Business
Start your own compliance business using MemberCheck's tried and tested compliance software
Learn More

India's AML/ CTF

india continent

From the 1 July 2005, the Prevention of Money Laundering Act extended to all financial institutions, and intermediaries.

Primary regulatory bodies that oversee the Indian financial sector and develop AML/CTF policies:

Financial Intelligence Unit- India (Flu-IND)​

Established in 2004 as a central national organisation charged with the responsibility of collecting, sorting, analysing, and disseminating information about suspected financial activities to law enforcement authorities and international financial intelligence units.

Reserve Bank of India (RBI)​

The central and primary financial regulator responsible for issuing bank licences, developing and enforcing anti-money laundering and counter-terrorist financing laws. RBI adheres to FATF's anti-money laundering and counter-terrorist financing strategy. RBI is responsible for holding the banks and financial institutions accountable for compliance with applicable regulations

Securities and Exchange Board of India (SEBI)​

SEBI was created on 12 April 1992 to safeguard the interests of securities investors and to facilitate and regulate the securities market. Additionally, it provides anti-money laundering and counter-terrorist financing rules for the financial markets.

Insurance Regulatory Development Authority (IRDA)​

This authority is responsible for regulating, promoting, and ensuring the insurance and reinsurance industries' orderly growth.

How to comply with AML/CTF regulations in India?​

As a designated service provider, the entity must ensure that it has a rigorous anti-money laundering/counter-terrorism financing policy in place, which includes the following:

Policies, procedures and controls to combat Money Laundering and Terrorist Financing

Focus on verifying the identities of customers, profiling of customers using risk categorisation and periodic customer review.

Monitoring of transactions with intensified monitoring of high-risk accounts

AML/CTF program, which has proper management oversight, systems and controls, segregation of duties, training etc.

Internal audits to evaluates and ensure adherence to AML/KYC policies and procedures

Appointment of a suitable compliance officer to oversee the AML program

Customised solution based on your entity ​

A "one-size-fits-all" solution may not be suitable in the financial sector, each registered entity should consider the unique nature of its market, corporate structure, clients and transaction types, and other factors when adopting initiatives and procedures to ensure their effectiveness.

Risk-based compliance​

All AML/CTF programs must be risk-based. The risk assessment serves as the foundation for your entire anti-money laundering/counter-terrorism financing program. Your program must demonstrate clearly the connections between defined risks and the processes, practises, and controls that address those risks.

What are my AML/CTF
reporting obligations?​

As a designated service provider, a company is required to notify 
FIU-IND of certain purchases and suspicious activity. Notable ongoing reporting responsibilities are:

Suspicious Transaction Report (STR): should be provided within seven days of concluding that any transaction, whether cash or non-cash, or a sequence of transactions, linked in any way, is suspicious.

Cash Transaction Report (CTR): Monthly reports should be sent to FIU-IND by the 15th day of the following month. All cash transactions valued at more than INR 1,000,000, or the foreign currency equivalent, should be reported.

Cash Transaction Report (CTR): Monthly reports should be sent to FIU-IND by the 15th day of the following month. All cash transactions valued at more than INR 1,000,000, or the foreign currency equivalent, should be reported.

Non-profit transaction reports (NTR): For all purchases by non-profit organisations involving the receipt often lakh rupees (INR 10,00,000), or the equivalent in foreign currency.

Preservation of records for at least 10 years from the date of cessation of the transaction/business relationship.

How can MemberCheck Help?

Our clients are provided with a secure and simple solution in regard to scanning for politically exposed or high-risk individuals, as well as checking names against sanction, regulatory, law enforcement, and other official lists.

Use our sophisticated scan filters and due diligence workflow to minimise the amount of time you spend sorting through, false matches. Scan results and reporting sections allow you to access customer details, whenever and wherever required, as well as download reports, to customise for further investigation or to provide evidence of your AML program compliance for auditing purposes.

Request a demo

* This page is intended as general information only and should not be relied on as the sole source of information for your AML obligations and AML program. Please visit your local regulatory authority sites for the latest relevant and full information.

Learn about our easy-to-implement trust solutions
Request a Demo