The paper emphasizes the urgent need to improve Anti Money Laundering (AML) frameworks in developing nations, with a particular focus on India. It investigates the complexities of India's AML policies, noting the advantages and drawbacks of the current legal and regulatory structures. Despite having a comprehensive framework, India struggles with issues like systemic corruption, limited resources, and regulatory inefficiencies, which impede AML enforcement. The significant presence of cash transactions in the informal sector complicates fund traceability for authorities. Additionally, the rise of virtual digital assets, such as cryptocurrency, poses challenges for effective regulatory control to prevent money laundering. The paper discusses how technological advancements, including artificial intelligence and blockchain, could enhance AML efforts. It also underscores the necessity for international collaboration, better inter-agency coordination, and strong public-private partnerships to improve enforcement and compliance. By contrasting India's challenges with those of other developing countries, the paper offers actionable recommendations for policy reforms, enhanced training, and the integration of advanced technologies, essential for India to strengthen its AML framework and align with global financial integrity standards.
Kuriyal et al. (Mon,) studied this question.