Sanjay Malhotra who serves as RBI Governor stresses that blockchain and AI combined with machine learning enable India to develop stronger AML and CFT frameworks for evolving financial dangers.

RBI Governor Sanjay Malhotra highlighted that India needs ongoing enhancements to its anti-money laundering and counter-financing of terrorism programs to handle emerging financial risks. During his presentation at the FATF Private System Collaborative Forum, Sanjay Malhotra affirmed that India maintains its position as the top nation in AML and CFT practices. As part of his approach, he promoted active public-private sector alliances to defend the financial structure.

According to Malhotra the advancement of technology has enhanced corporate operations while it has lured money launderers to adopt modern sophisticated schemes. He recommended that civic society and financial institutions unite with governmental entities to minimize these known dangers. During the conference participants, he also emphasized the essential roles of blockchain, and AI alongside ML technologies for developing superior AML risk evaluation procedures and operational risk management platforms.

The governor promoted the FIU-India FPAC3 program which serves as a public-private platform to enhance cooperation about financial crime prevention.

During his presentation, Malhotra examined how banking institutions use digital systems to onboard customers and conduct customer due diligence (CDD) procedures. The governor clarified that while digital processes are faster and more efficient, the due diligence criteria that are now in place still require further development.

He underlined that in order to help the financial sector combat emerging dangers and preserve security and transparency in the financial ecosystem, both technological innovation and regulatory frameworks must continuously improve.