The Reserve Bank of India (RBI) on October 10, 2024, notified the Internal Risk Assessment Guidance for Money Laundering/ Terrorist Financing Risks.
This guidance document is designed for all regulated entities (REs) of the Reserve Bank, including banks, NBFCs, Authorized Persons, and Payment System Operators. It aims to assist REs in their risk assessment and compliance activities while providing a framework for developing their own Risk-Based Approach (RBA). Senior management and employees involved in assessing internal risks related to money laundering (ML), terrorist financing (TF), and proliferation financing (PF) can use this document for guidance.
Key Principles for Internal Risk Assessment (IRA): The enterprise-wide risk assessment is foundational to the RBA. It helps REs identify their vulnerabilities to ML, TF, and PF risks, enabling them to allocate resources and implement AML/CFT measures proportionate to the level of risk identified.
[Notification No. 2024-2025/1261]
