Author(s): Krishn A Goyal*, Sudha Bishnoi
The emergence of financial technology (FinTech), particularly in the micro, small, and medium-sized enterprise (MSME) market in India, has altered the financial environment. In the context of the FinTech-based MSME sector, unique challenges arise due to the speed, scale, and anonymity associated with digital transactions. This necessitates a comprehensive regulatory framework that addresses the specific risks and vulnerabilities associated with this sector. However, the increasing adoption of digital platforms and online transactions has also opened doors for money laundering activities, posing a significant challenge to the integrity of the financial system. This abstract explores the regulatory measures required to combat money laundering specifically within the FinTech-based MSME sector in India. Effective anti-money laundering (AML) regulations are essential to safeguard the integrity of the financial sector and prevent illicit financial flows.