NEW RBI GUIDELINES ON FRAUD RISK MANAGEMENT: A RISK BASED AND DATA-DRIVEN APPROACH

Paper Number :WP49/2024
Publication Date :Dec. 24, 2024

In the context of the ‘Internal Risk Assessment Guidance for Money Laundering/Terrorist Financing Risks’ issued by Reserve Bank of India on October 10th, 2024 which focus on a risk based and data driven approach on fraud monitoring, we argue why the need for a risk-based system and why banks must quickly revamp their systems to optimise the use of internal and external data to develop more scientific risk rating models to be able to contain risk of frauds in their future business.