Regulatory Insights

KYC Hub, AML Regulations in India 2025

In 2025, India's Anti-Money Laundering (AML) regulations continue to evolve in response to emerging threats and technological advancements in the financial sector. The country has strengthened its Know Your Customer (KYC) guidelines to ensure enhanced transparency and to combat financial crimes such as money laundering and terrorist financing

These regulations require financial institutions and businesses to implement stringent customer identification processes, ongoing monitoring, and reporting of suspicious transactions. The role of KYC has become even more critical, with the government and regulatory bodies focusing on the integration of digital tools, biometrics, and data analytics to improve compliance and enforce stricter controls.

This section offers insights into the latest developments in AML and KYC frameworks, helping businesses stay informed and ensure adherence to the dynamic regulatory landscape in India.

Anqa Compliance: India AML & Sanctions Compliance Guide 2025

In today’s increasingly globalized financial landscape, businesses in India face mounting pressure to adhere to stringent Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. With evolving risks in sectors like fintech, cross-border transactions, and virtual assets, organizations must implement robust compliance frameworks to mitigate the risk of financial crime, protect their reputation, and ensure they meet regulatory expectations.

Anqa Compliance is dedicated to guiding businesses in India through the complexities of AML and sanctions compliance. Our approach is rooted in practical insights, drawing from India’s legal frameworks, global best practices, and the latest regulatory changes. Whether you're a financial institution, a fintech firm, or a non-financial business, our comprehensive guide offers essential tools and knowledge to ensure your compliance processes are both effective and efficient.

This AML and Sanctions Compliance Guide for India serves as a strategic resource for businesses navigating the country’s complex compliance environment. It offers :

Regulatory Overview : A detailed examination of the Indian legal landscape, including the Prevention of Money Laundering Act (PMLA) and the role of key regulatory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and Financial Intelligence Unit – India (FIU-IND).

Key Compliance Obligations : A practical breakdown of Customer Due Diligence (CDD), Know Your Customer (KYC), transaction monitoring, reporting mechanisms, and sanctions screening processes.

Risk-Based Approach : Insights on implementing a dynamic, risk-based compliance strategy, focusing on customer risk assessment, transaction risk profiling, and the importance of continuous monitoring.

Global Sanctions Compliance : How to navigate global sanctions lists and ensure that your business is not inadvertently engaging with sanctioned individuals or entities. We delve into UN Sanctions, OFAC Lists, and India-specific sanctions regulations.

Technological Solutions : Recommendations on leveraging RegTech tools to streamline compliance processes, automate KYC/CDD procedures, conduct real-time sanctions screening, and monitor suspicious activity efficiently.

ICLG Report: AML Laws and Regulations 2025

In an era of accelerating globalization, digital financial flows and complex corporate structures, the 2025 edition of the ICLG Anti‑Money Laundering Laws & Regulations 2025 emerges as a timely and indispensable resource for compliance professionals, financial institutions, and businesses operating across jurisdictions. The guide offers a comprehensive comparative legal analysis of AML regimes in multiple jurisdictions capturing both criminal enforcement and regulatory/administrative frameworks.

At its core, AML regulation aims to safeguard the integrity of financial systems worldwide by preventing criminals, corrupt actors, or terrorists from injecting illicit funds into legitimate economies. Through a combination of laws, supervisory rules, compliance obligations, and enforcement mechanisms, AML frameworks seek to identify, deter and prosecute financial crime.

Besides its traditional focus on banks and other financial institutions, modern AML regimes as reflected in ICLG 2025 increasingly recognise that money laundering today can arise through non‑banking financial services, digital and fintech platforms, cross-border trade, shell companies, and emerging instruments such as virtual assets. As a result, obligations around customer due diligence (CDD)/Know Your Customer (KYC), transaction monitoring, reporting suspicious activities, beneficial ownership verification and ongoing risk assessment have become more stringent and widespread.

Significantly, the 2025 guide highlights evolving global trends that are reshaping AML compliance including real-time transaction monitoring, enhanced regulatory enforcement, and increasing use of technology (data analytics, AI) for proactive risk detection.

For stakeholders such as compliance officers, risk managers, auditors, and regulatory consultants (a profile that matches your background), the ICLG 2025 report offers.

A cross-jurisdictional comparative view useful for assessing compliance requirements in multiple jurisdictions, especially for international operations or clients

Insight into regulatory trends enabling organizations to anticipate heightened enforcement, regulatory changes, and emerging risk areas e.g. digital assets, cross‑border transactions, beneficial ownership disclosure

Guidance for designing or strengthening AML/CTF (Countering Financing of Terrorism) frameworks aligning internal AML policies with global standards and best practices.

AMLWatcher: AML/CFT in India – Regulator Roles and Obligations

In light of increasingly complex financial flows, cross‑border trade (especially relevant for SEZ‑based units), digital transactions, and evolving finance‑sector landscapes, AML/CFT compliance has emerged as a strategic necessity not merely a regulatory formality. The AML Watcher report on “AML/CFT in India – Regulator Roles and Obligations” offers a thorough breakdown of the institutional architecture, legal frameworks, and sector‑wise obligations that underlie India’s anti‑money laundering and counter‑terrorist financing (CFT) regime.

However and critically the legal framework is operationalised by a network of specialised regulators and enforcement agencies. The AML Watcher report maps out these players, clarifying their distinct roles, sectoral jurisdictions, and overlapping responsibilities.

As regulatory expectations grow driven by global standards, evolving typologies (fintech, virtual assets, trade‑based laundering, complex corporate structures), and enhanced enforcement scrutiny compliance architecture must evolve accordingly. This means robust KYC/CDD, risk‑based monitoring, timely reporting, and strong governance controls regardless of whether one is in banking, NBFCs, capital markets, insurance, or other regulated sector.

For consultants, compliance officers, and regulators alike, the AML Watcher’s survey of India’s AML/CFT landscape serves as both a primer and a roadmap helping to identify regulatory obligations, anticipate enforcement trends, and design compliance systems that remain resilient amid evolving threats.