Delhi Delhi: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday expressed concern over the threats posed by money laundering and terror financing to the national and global financial systems, which are constantly evolving and becoming more sophisticated.
The RBI Governor said that technological advancements have given impetus to money laundering and terror financing activities.
Speaking at the Private Sector Cooperation Forum of the Financial Action Task Force (FATF), RBI Governor Sanjay Malhotra said, “The threats posed by money laundering and terror financing to the national and global financial systems are constantly evolving and becoming more sophisticated.”
“To effectively counter these threats, we need to continue close collaboration among various stakeholders – government agencies, financial entities in both public and private sectors, civil society and others,” the RBI Governor said.
The RBI Governor stressed on strengthening the financial system to boost the ecosystem.
“We are determined to further strengthen our financial system to prevent and combat illicit financial activities, taking into account the recommendations made during the assessment. We will continue to strive for continuous improvement in this regard,” he said.
Malhotra further said there should be laws and regulations that can prevent only illegal and unlawful activities. “We should make laws and regulations that target only illegal and unlawful activities with surgical precision, and not use them as blunt tools that inadvertently hurt honest people as well,” he said. While enacting legal frameworks and regulations, regulators should take into account the impact on individuals and businesses, the RBI governor said, adding that a risk-based approach is recommended in this regard.
