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Use of New Technology in AML/CFT

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  According to FATF[ July 2021 ], New technologies for AML/CFT refer to: Innovative skills, methods, and processes that are used to achieve goals relating to the effective implementation of AMLCFT requirements or Innovative ways to use established technology-based processes to comply with AML/CFT obligation The use of new technologies and innovation can help the public and private sectors improve the effectiveness of their risk-based implementation of the FATF Standards. The development, adoption and regulatory supervision of these technologies must reflect threats as well as opportunities. It must also ensure that the use of innovative tools is compatible with international standards of data protection, privacy and cybersecurity Source : Report on the use of AML/CFT SupTech tools, European Banking Authority 12 Aug 2025 New technology transforms Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) by replacing slow, rigid, rule-based sys...
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Twin Bail Conditions- PMLA 2002 : Sec 45

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  The twin conditions for bail under Section 45 of the Prevention of Money Laundering Act, 2002 (PMLA) are strict statutory requirements that an accused must satisfy before a court can grant bail if the Public Prosecutor opposes the application. The Twin Conditions (Section 45(1)) When opposed by the Public Prosecutor, bail requires court satisfaction on two cumulative conditions: No reasonable guilt: Prima facie grounds showing the accused is not guilty. No future offense: The accused is unlikely to commit any offense while on bail. Understanding PMLA Section 45 bail today means understanding how that arc bent across nine landmark Supreme Court rulings between 2017 and 2026. The provision was struck down once in November 2017 . Parliament revived it four months later. A three-judge bench upheld the revival in July 2022 . The 3-judge bench of AM Khanwilkar*, Dinesh Maheshwari and CT Ravikumar, JJ ,in   the Supreme Court has, in 545...
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Reserve Bank of India : From 'One-size-fit-All' to Differentiated Guidances

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  After withdrawing Master Direction on AML/CFT by end 2025, Reserve bank of India has come up with individual Master Direction for each segment it manages. 1. Asset Reconstruction Companies (ARCs) ·          Definition: Specialized financial institutions licensed by the Reserve Bank of India (RBI) under Section 3 of the SARFAESI Act, 2002 to acquire Non-Performing Assets (NPAs) or bad loans from banks and financial institutions. ·          Core Functions: o    Purchase stressed assets at a mutually agreed negotiable price to clean bank balance sheets. o    Issue Security Receipts (SRs) to Qualified Buyers (QBs). o    Undertake recovery and resolution strategies such as debt restructuring, change in management, property sales, or insolvency resolutions. ·          Key Regulations: Governed by RBI directions requiring...
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