Mumbai: The Reserve Bank Governor Sanjay Malhotra on Wedns Day that Considering The evolving landscape of money laundering, regulators will need to continuous AUGMENT AUGEMENT AUGENUEGMENT AARTIGEMENT AAITIGEMENT AIED Machine Learning (Ml) Risk Assessment Framework to Make Approves System Enhancements.
Addressing the Financial Action Task Force (FATF) Private Sector Collaborative Forum 2025 Event HERE, The RBI Governor Pointed Out that Technology has enabled Greater Ease of Oase of Oase of Opposition Busines, But AT The Same Time, It has also also facilitated and fosted new and very sophistic means of money laundering and illicit finance. This makes it imperative to refine and improve risk assessment models.
He also Urged the Central Banks to Understand the latest trends and developments in the financial world that can be exploited by criminal elements. By undersrstanding this, He said, Central Banks Should the Develop Rules and Frameworks Which Detect Suspicious Transactions Early, and take Pre-Emptive Action.
At the same time he also had a word of caution for policymakers. While we Continue to make our Financial Systems Safe and Secure Against Money Laundering and Terrorist Financing, We as Policymakers Need to Be Mindful That Your Measures are not over and do you STIFLE legitimate activities and investments, ”Malhotra observed.
“Therefore, we need to have laws and regulations, which surgical precision, target only the Illlegitimate and the Illlicit, Rather than use very broad and blunt tools, which needsly allies Honest, “He said.
He also highlighted the need to improve the quality of data that is received, and the need to harness the evolving technologies Technology or machine learning.
“This will help us in improving the screening of transactions and detection of social activities, thereby reducing errors, false positives, false positives, false negatives,” He added.
Malhotra further stated that the RBI will continue to work towards fulfilling the commission to effectively implemently the next phase of the g20 roadmap towards inclusive cross-border payments by 2027.
“We are all aware that a lot of work needs to be done over there Making Cross-Border Payments Faster, Cheaper, Convenient and Transparent, It would be desirable to make the travel rules Technology Neutral, ”He added.
The RBI Governor also said that regulations should not create unintended barriers to financial inclusion. “We need to be medbul of customer rights and convenience while fulling due to diligence requires,” He remarked.