In the Indian context, AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) refer to a set of laws, regulations, and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income and from using the financial system to fund terrorist activities.

India’s AML framework is primarily governed by the Prevention of Money Laundering Act (PMLA), 2002, which mandates financial institutions, intermediaries, and certain professionals to maintain records, conduct customer due diligence (CDD), and report suspicious transactions to the Financial Intelligence Unit – India (FIU-IND).

CFT efforts in India are aligned with global standards set by the Financial Action Task Force (FATF) and are implemented through various national security laws, including the Unlawful Activities (Prevention) Act (UAPA), 1967. Regulatory bodies such as RBI, SEBI, IRDAI, and PFRDA enforce AML/CFT guidelines within their respective sectors.

Together, AML and CFT mechanisms aim to safeguard India’s financial system from abuse and ensure compliance with international obligations.