The RBI has reinforced its commitment to combat Money Laundering and Terrorist Financing by issuing new guidelines for banks, non-banking financial companies and other regulated entities
According to PTI News, these guidelines mandate a thorough ‘Money Laundering and Terrorist Financing Risk Assessment’ to be conducted periodically. The assessment aims to identify, assess, and mitigate potential risks related to clients, countries or geographic areas, products, services, transactions, or delivery channels.
As part of these regulations, the RBI has introduced ‘The Internal Risk Assessment Guidance for Money Laundering/Terrorist Financing’, which is specifically designed for dealing staff and practitioners involved in Anti-Money Laundering (AML), Countering Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) within these entities. This guidance emphasises the importance of utilising both internal and external sources of information to conduct comprehensive risk assessments effectively.
These measures highlight the RBI’s proactive approach to ensuring that financial institutions are equipped with the necessary tools and knowledge to prevent financial crimes. This initiative is crucial for maintaining the integrity of the financial system and safeguarding it from misuse for malicious activities.
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