RBI Asks Banks, Companies to Disclose AML Checks on Foreign Deals

The Reserve Bank of India is tightening its oversight of corporate overseas investments. Banks must now report their anti-money laundering procedures for international business partners, and companies with cross-border holdings will need to relay that compliance information to the central bank.

The new reporting mandate, confirmed by two banking sources, targets the AML gap between Indian entities and foreign counterparties. Lenders are being asked to detail how they vet foreign partners before approving outward remittances for acquisitions, joint ventures, or subsidiary funding.

Corporate treasuries and compliance officers at firms with existing overseas investments say the data request is broader than routine reporting.