RBI Governor Calls for United Front Against Money Laundering Threats

RBI Governor Sanjay Malhotra stresses the need for collective efforts to tackle evolving threats of money laundering and terror financing. Speaking at the FATF forum, he urges the strengthening of financial systems and calls for targeted regulations to combat illicit activities without impacting legitimate entities.

The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, raised alarms on Wednesday regarding the increasingly sophisticated threats posed by money laundering and terror financing. These activities, he noted, are threatening both national and global financial systems. Technological advancements have bolstered these illicit activities, presenting significant challenges.

During the Private Sector Collaborative Forum of the Financial Action Task Force (FATF), Governor Malhotra emphasized the necessity for cohesive efforts among government agencies, financial entities across sectors, and civil societies to counter these threats. He highlighted the importance of continuously strengthening the financial system to combat illicit financial activities.

Governor Malhotra called for precise legal frameworks that specifically target illegitimate activities without hampering honest operations. While advocating for a risk-based approach to regulations, he acknowledged potential challenges like false assessments. The focus, he stressed, must be on refining risk assessment models and staying abreast with financial trends that could be exploited by criminals.

(With inputs from agencies.)