Financial markets regulators Securities and Exchange Board of India (Sebi) and Insurance Regulatory Development Authority (Irda) may install anti-money laundering system to help market intermediaries like mutual funds, stockbrokers and insurance distributors to curb money laundering by their clients.
This is aimed at bringing down the cost of maintaining such an infrastructure that generates alerts on suspected accounts and individuals operating through the financial market intermediaries, an industry official said.
He expressed the need for such an alert generating system to check anti-money laundering.
Some financial institutions like banks have such a system in place to generate alerts but transactions at insurance firms, mutual funds, brokerages where such systems are not in place are at risk. Big financial institutions like SBI have installed its own anti-money laundering system.
Speaking at conference on anti-money laundering S Ramann, executive director, Sebi said, “Transaction monitoring is extremely important, there is huge risk. It is not possible for smaller entities to do it. But it is critical for other agencies to put such sites. By doing so for a fraction of a cost you get your work done.”
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