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| Anti-money laundering system needs improvement |
| Press Trust Of India / New Delhi Jun 19, 2009, 00:32 IST |
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The country’s financial institutions need more investment and improvement in their anti-money laundering (AML) systems even as 79 per cent of them show a positive attitude towards the regulations, a KPMG survey has said.
The survey, conducted by global consultancy KPMG among various financial institutions in the country, showed a positive attitude towards AML regulations with 79 per cent of respondents believing the level of burden placed upon them was acceptable.
“Though financial institutions in India have covered a large ground in AML compliance, still significant investment and improvement in AML systems is required,” the survey said.
However, only 45 per cent of respondents felt that the existing requirements were sufficiently geared to address money laundering risks, while 34 per cent opined they could be better focused, it added.
“India’s escalating global exposure is also rendering its financial institutions vulnerable to money laundering. The ratification of Prevention of Money Laundering Act in 2005 has made anti-money laundering an essential compliance for financial institutions.” “The onus is on these institutions to play a pivotal role in addressing the issue by assisting regulators and law enforcement managers to fight this crime,” KPMG India Executive Director Arpinder Singh said.
With India aspiring to become a member of Financial Action Task Force (FATF), it is essential that India also commits to the implementation of wide ranging requirements of the task force. This should include an independent review of policies and processes, Singh added.
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