Post the announcement of demonetisation by the Honourable Prime Minister, the Indian banking system...
Post the announcement of demonetisation by the Honourable Prime Minister, the Indian banking system has witnessed various innovative methods being deployed by black money hoarders to circumvent the penalty announced by the Government of India, if the cash deposits in their bank accounts do not match their income tax returns.
In this document, KPMG in India has attempted to collate these methods and highlight the red flags in the Anti-Money Laundering (AML) system which would help identify these methods. This document also provides a brief overview of recommended measures that the banks should adopt, to effectively manage the exponential increase in AML red flag alerts due to the cash deposits of old bank notes.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.