Evaluating the Effectiveness of Anti-Money Laundering Measures in India: A Quantitative Assessment of Bank Reporting and Compliance Practices

The objective of the present study is to evaluate the effectiveness of anti-money laundering (AML) mechanisms in India. Specifically, the study focuses on identifying and analyzing two key variables: organizational practices, such as employee training, and banking practices, including customer record-keeping, that influence the implementation and outcomes of the regulations. Since money laundering is more prevalent in Indian banking institutions, it is essential to assess the effectiveness of AML measures. The study adopts a quantitative approach to examine the relationships and impact of two crucial regulations, including employee training and customer record-keeping, on reducing money laundering risks in India. A quantitative approach was employed, with a sample of 127 responses collected from banking employees in the Delhi NCR region. Data were gathered using a structured questionnaire and analyzed through regression techniques to assess the predictive role of employee training and customer record-keeping in detecting and preventing money laundering activities. The study found that employee training and customer record-keeping significantly reduce money laundering risks in banking systems, highlighting the importance of institutional practices in strengthening AML compliance and ensuring financial integrity. The data for this study were collected from the Indian banking sector. Future research could examine similar studies in developed nations, such as those in Europe and the USA. This study contributes to AML literature by integrating organizational practices into the discourse on financial crime prevention and offering practical insights for policymakers, regulators, and banking institutions seeking to improve AML effectiveness.