AML KYC & Sanctions Consulting Services

Banks, non-banking financial companies, payment intermediaries, and other regulated entities in India are required under the Prevention of Money Laundering Act and related regulatory guidelines to maintain robust anti-money laundering programmes, know-your-customer processes, and sanctions screening controls. These obligations extend to customer identification and risk categorisation, ongoing transaction monitoring, reporting of suspicious transactions to the Financial Intelligence Unit, and screening against domestic and international sanctions lists. As regulatory expectations and enforcement activity around money laundering and sanctions compliance continue to intensify, regulated entities need programmes that are not only compliant on paper but operationally effective in identifying genuine risk.

Why This Matters

Deficiencies in AML, KYC, or sanctions controls can result in regulatory penalties, restrictions on business activity, and reputational damage that affects customer and counterparty confidence. Beyond the direct consequences of non-compliance, weak controls expose the institution to being used, knowingly or otherwise, as a conduit for money laundering, terrorist financing, or sanctions evasion, with attendant legal and reputational fallout. Given the volume of transactions regulated entities process, a well-designed programme is essential to distinguish genuine risk from noise, so that suspicious activity is neither missed nor buried under excessive false positives.

How We Help

AML Programme Design and Gap Assessment

We assess existing anti-money laundering frameworks against regulatory requirements and leading practice, identifying gaps in governance, risk assessment, policies, and controls, and assist in designing or strengthening the programme to address identified weaknesses in a manner proportionate to the entity's risk profile.

KYC Policy and Process Review

We review customer onboarding and periodic KYC update processes, including customer due diligence and enhanced due diligence procedures for higher-risk customers, to assess whether documentation, risk categorisation, and beneficial ownership identification meet regulatory expectations and operate consistently in practice.

Transaction Monitoring and Sanctions Screening

We review transaction monitoring rules, thresholds, and alert investigation processes, along with sanctions and watchlist screening arrangements, to assess their effectiveness in detecting genuinely suspicious activity and to help calibrate systems to reduce unproductive false positives without compromising detection quality.

Regulatory Reporting Support

We assist compliance teams in preparing and reviewing suspicious transaction reports and other regulatory filings, and in responding to regulatory inspections and queries relating to AML, KYC, and sanctions compliance, drawing on an understanding of what regulators typically expect to see in such submissions.

Who Needs This

• Banks, NBFCs, and payment and settlement system operators
• Fintech and digital lending platforms subject to AML and KYC obligations
• Insurance companies and other regulated financial intermediaries
• Entities preparing for or responding to regulatory inspections on AML compliance

Our Approach

We work with compliance and risk teams to build programmes that are practical to operate day to day, recognising that an AML framework which generates excessive noise or is disconnected from actual business risk is ultimately less effective than one that is proportionate and well understood by frontline staff. Our recommendations are grounded in current regulatory expectations and are tailored to the entity's customer base, product mix, and operating model, with a focus on sustainable improvement rather than one-time compliance fixes.

Get in Touch

To discuss how we can support you with AML KYC & sanctions consulting services, write to us at info@agarwalurs.com.