Reserve Bank of India (RBI) Governor Sanjay Malhotra called on President Droupadi Murmu at Rashtrapati Bhavan on Friday.
"Shri Sanjay Malhotra, Governor, Reserve Bank of India, called on President Droupadi Murmu at Rashtrapati Bhavan," the President of India posted on X.
Earlier, on 26 March, Malhotra raised concerns over the evolving threats posed by money laundering and terror financing to national and global financial systems, stating that these activities are becoming increasingly sophisticated due to technological advancements.
"The threats from money laundering and terror financing to the national and global financial systems are continuously evolving and becoming more sophisticated," Malhotra said while speaking at the Private Sector Collaborative Forum of the Financial Action Task Force (FATF).
The RBI Governor stressed the importance of strengthening the financial system to counter such risks.
"We are determined to further strengthen our financial system to deter and combat illicit financial activities, taking into consideration the recommendations made during the evaluation. We will continue to strive for continuous improvement in this regard," he added.
Highlighting the need to reduce the compliance burden, Malhotra urged regulators to refine risk assessment models.
"But let us keep in mind that this is only a step forward in reducing the compliance burden. Let us appreciate that it is not the ultimate solution, as any risk-based approach is not perfect; it would have false positives and false negatives. We need to continuously refine and improve our risk assessment models to make them robust," he said.
He further emphasised the importance of staying ahead of financial crime trends.
"The focus has to also be on understanding the latest trends and developments in the financial world that can be exploited by criminals. The regulators need to develop tools and enable frameworks that will allow us to detect suspicious transactions and activities early and take pre-emptive action," Malhotra stated.
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