Cost drivers: KYC processes, AI surveillance tech, and regulatory fines.
Effectiveness gaps: Only 35% of SARs (Suspicious Activity Reports) lead to convictions (ED data).
Indian innovations: Aadhaar-based e-KYC, AI-powered transaction monitoring.
Using RBI audits, bank case studies (HDFC, Paytm Payments Bank), and global benchmarks, the study proposes a cost-optimized AML framework for India’s transaction banking sector.
Map AML costs for a mid-sized private bank (e.g., IDFC First).
Analyse ED’s conviction rate for bank frauds (2019–24).
Design an AI-based transaction monitoring workflow.
Analyse: Should India adopt "risk-based AML" like Singapore?
