Analysis on importance and effectiveness of Suspicious Activity Reporting (SAR) for the Anti-Money Laundering process of investment banks in India

Sheshadri, Kavitha (2024) Analysis on importance and effectiveness of Suspicious Activity Reporting (SAR) for the Anti-Money Laundering process of investment banks in India. Masters thesis, Dublin, National College of Ireland.

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Abstract

The primary goal of Suspicious Activity Reporting rules at financial institutions is to identify and prevent money laundering and other crimes such as terrorist financing, tax evasion, and bribery. The Reserve Bank of India (RBI) has implemented initiatives to ensure that all financial institutions follow regulatory standards. The regulations on Suspicious Activities in India were implemented in early 2000s which is much later compared to the global initiative in in 1900s. The increasing trend of the suspicious reports in India in early years of implementation raises the concern over the effectiveness of the Anti-Money Laundering measures in Indian banks. To combat money laundering operations, investment banks must adhere to policies and processes that are consistent with national and international regulatory standards. One can identify if the client is engaging in any suspicious activities by using different mechanisms in their daily operations. Hence this study is conducted to find out the effectiveness of the Suspicious Activity Reporting in preventing the money laundering activities.

The research is conducted using the quantitative research approach and data collected through an online survey by 100 employees from Bengaluru, India, who work in investment banks using the convenience sampling method.

The results of the research analysed using descriptive and statistical reports and the results show that the efficacy Suspicious Activity Reporting on Anti-Money Laundering processes is important and helps in preventing the money laundering. However, there was knowledge gap was identified in the perceived effectiveness and importance of Suspicious Activity Reporting though research. Also, some of the investment banks are reluctant to implement the Suspicious Activity Reporting practices in place. The findings and the suggestions could assist Indian investment banks in implementing robust system for Anti-Money laundering by strengthening the Suspicious Reporting practices

Item Type:	Thesis (Masters)
Supervisors:	Name Email Cleary-Gaffney, Michael UNSPECIFIED
Uncontrolled Keywords:	Anti-Money Laundering; Customer Due Diligence; Know Your Customer; Suspicious Activity Reporting
Subjects:	H Social Sciences > HV Social pathology. Social and public welfare > Criminology > Crimes and Offences D History General and Old World > DS Asia H Social Sciences > HG Finance > Banking H Social Sciences > HV Social pathology. Social and public welfare > Criminology > Crimes and Offences > Money Laundering
Divisions:	School of Business > Master of Science in International Business
Depositing User:	Ciara O'Brien
Date Deposited:	07 Jun 2025 11:04
Last Modified:	07 Jun 2025 11:04
URI:	https://norma.ncirl.ie/id/eprint/7802

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