Anti-Money Laundering (AML) in Correspondent Banking: Costs of De-Risking – India’s Challenges & Solutions
Adhiita Consultancy ServicesBankingProject Objectives:
Correspondent banking is vital for global trade and remittances, but stringent Anti-Money Laundering (AML) regulations have led to de-risking—where banks terminate relationships with high-risk jurisdictions. This report examines
How AML compliance impacts India’s correspondent banking network.
Economic costs of de-risking (declining remittance access, trade friction).
Policy solutions to balance AML enforcement and financial inclusion.
Key Insight: Excessive de-risking hurts India’s MSMEs and diaspora remittances, requiring smarter AML tech and global coordination.
Project Tasks:
Data Collection
Analyze RBI/FIU reports on AML penalties and de-risking cases.
Interview Indian bankers on compliance challenges.
Comparative Analysis
Compare India’s AML regime with Singapore/UAE (lower de-risking).
Case Study Development
Profile one Indian bank (e.g., SBI) losing correspondent ties.
Cost-Benefit Modeling (Excel)
Calculate trade delays’ GDP impact due to de-risking.
Report & Presentation
Use flowcharts (AML compliance process).
SWOT analysis of RBI’s measures.
Educational Qualifications
B.ScB.ComBBAM.ComMBA
Required Skills
Risk AssessmentAnti-Money Laundering (Aml) ComplianceInternational BankingComparative Regulatory AnalysisEconomic Impact Modeling & Cost-Benefit AnalysisPolicy Recommendation & Stakeholder Engagement
