India

New Documents

The Reserve Bank of India issued a notice to regulated entities concerning changes to the jurisdiction’s schedule of designated individuals.

The Enforcement Directorate of India is charging Hardeep Singh and Ankur Khanna for violations of the country’s gambling and anti-money laundering laws.

News

Enforcement Actions

The Reserve Bank of India announced its decision to fine the Bhilai, India-based bank for its failure to adhere to its know your customer obligations.

The Reserve Bank of India imposed a monetary penalty on the Sidhi, India-based bank for failing to comply with its know your customer obligations.


Important Facts

  • The U.S. State Department labels India as a major money laundering country. India continues to face vulnerabilities, including informal financial networks, complex onshore and offshore corporate structures, and enforcement capacity constraints. Despite efforts by Prime Minister Narendra Modi to curtail illicit financial activity, the country still sees informal remittance systems used extensively to evade transaction charges and to conduct both legitimate remittances and money laundering. Transnational criminal organizations use offshore corporations and trade-based money laundering to disguise illicit funds and companies use trade-based money laundering to evade capital controls.  The most common money laundering methods include intermingling criminal proceeds with legitimate assets, purchasing bank checks with cash, routing funds through employees’ accounts, and complex legal structures. Illicit funds in India are also laundered through real estate transactions, gold purchases, charities, election campaigns, and educational programs. The illicit proceeds are most commonly derived from tax avoidance, corruption, narcotics trafficking, human trafficking, and illegal trade. The State Department report noted that India prioritizes crimes of tax evasion and counterfeit currency, while anti-money laundering and terrorist financing are lower priorities. India has comprehensive know-your-customer and suspicious transaction reporting requirements and uses enhanced due diligence for politically exposed persons. India has addressed shortcomings in the criminalization of money laundering, and in its domestic framework for confiscation and provisional measures.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 5 High :
Largely Compliant : 25 Substantial :
Partially Compliant : 15 Moderate :
Non-Compliant : 4 Low :

BASEL i

Rank : 70/141
Score : 5.15/10

TRANSPARENCY INTERNATIONAL i

Rank : 86/179
Score : 40/100

Tax Justice Network i

Rank : 47/133
Score : 48/100