EVALUATING THE IMPACT OF CORPORATE GOVERNANCE REFORMS ON ANTI-MONEY LAUNDERING COMPLIANCE IN THE BANKING SECTOR

AUTHOR – PALLAVI RAJ, STUDENT AT AMITY UNIVERSITY NOIDA

BEST CITATION – PALLAVI RAJ, EVALUATING THE IMPACT OF CORPORATE GOVERNANCE REFORMS ON ANTI-MONEY LAUNDERING COMPLIANCE IN THE BANKING SECTOR, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 700-705, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract

This paper systematically investigates the linkages between corporate governance reform and anti-money laundering (AML) compliance among banks. Given the rise to a more sophisticated financial crime environment, banking institutions are facing immense pressure on enhancing their anti-money laundering (AML) frameworks. Corporate governance reforms, which are enforced via statutory regulations as well as internal governance mechanisms, have been playing an important role in improving AML compliance. The study reports systematically on the impact of these reforms in engendering a strong Culture of Compliance, achieving transparency, improving risk management processes and for accountability mechanisms within banks. Classifying relevant case law, regulatory changes and recent empirical data through a lens of similar policy implementations overseas provides contrast to highlight the considerable obstacles with limited success in enacting corporate governance reforms within AML. Additionally, it offers suggestions for how to strengthen the connection between corporate governance and compliance requirements.

Keywords: Corporate Governance, Anti-Money Laundering Compliance, Risk Management, Regulatory Framework, Accountability and Transparency.