ARIFAC Platform Launched to Strengthen AML And CFT Compliance in India

The Alliance of Reporting Entities in AML/CFT (ARIFAC) has been launched as a national platform to strengthen financial crime compliance in India. The initiative is aimed at improving coordination among regulated entities under the Prevention of Money Laundering Act.

It is a private-sector effort with support from key industry bodies. The Financial Intelligence Unit–India will act as an observer to the platform.

What Is ARIFAC And Who Are Its Members?

ARIFAC is an industry-led platform designed to bring together reporting entities involved in AML and CFT compliance. Members include banks, NBFCs, payment system operators, insurance companies, securities market intermediaries, and virtual digital asset service providers.

Cooperative institutions are also part of the network, ensuring wide sectoral representation. This multi-sector participation enables coordinated efforts to address financial crime risks across the ecosystem.

What Is the Role Of FIU-India in ARIFAC?

The Financial Intelligence Unit–India will participate in ARIFAC as an observer, providing guidance and oversight support. While the platform remains industry-driven, the presence of FIU-India strengthens its alignment with regulatory expectations.

This arrangement allows for structured engagement between reporting entities and authorities. It also supports better information exchange and compliance understanding across sectors.

How Will ARIFAC Improve AML And CFT Compliance?

The platform will focus on capability building through training programmes, certifications, and workshops. Continuous learning initiatives are expected to enhance awareness of AML and CFT requirements among reporting entities.

It will also develop shared frameworks on key compliance areas such as suspicious transaction reporting and sanctions screening. These measures aim to improve consistency and efficiency in compliance practices.

What Are the Key Focus Areas of ARIFAC Initiatives?

ARIFAC will address several priority areas linked to emerging financial risks and regulatory needs. These include transaction monitoring, typology development, enhanced due diligence, and mule account detection.

The platform will also focus on digital banking risks, cross-border information sharing, and virtual digital asset-related challenges. Dedicated working groups will develop best-practice recommendations for members based on these focus areas.

How Does ARIFAC Support Cross-Sector Collaboration in Financial Crime Prevention?

ARIFAC is structured to promote collaboration among diverse financial sector participants. Its secretariat is managed by the Payments Council of India and the Fintech Convergence Council, ensuring institutional support.

The platform enables sharing of insights, regulatory engagement, and development of common compliance standards. This coordinated approach is expected to strengthen India’s financial crime prevention framework in line with global practices.

Read More: ED Issues Warning on Digital Arrest Scams.

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Conclusion

The launch of ARIFAC marks a structured effort to enhance AML and CFT compliance across India’s financial system. By bringing together multiple reporting entities, the platform aims to improve coordination and information sharing.

Its focus on training, collaboration, and best practices addresses evolving financial crime risks. The initiative reflects a broader push towards strengthening regulatory compliance through industry participation.

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