One nation, one KYC: Sebi shows the way

It wasn't a shootout or a sting operation that brought down Al Capone. It was a ledger.

- HARSH ROONGTA

In The Untouchables (1987), a bespectacled accountant suggests prosecuting Capone not for bootlegging or murder, but for failing to file tax returns. Ness (Kevin Costner) initially scoffs. But the money trail proves more effective than witnesses, whom Capone would eliminate. Records of undeclared income led to his conviction and imprisonment for over a decade. (Al Capone was a real-life American mafia boss active in the 1920s and 1930s.)

That's the power of a money trail. For crimes like terrorism, corruption, drug trafficking or online scams, it often holds more weight than witness testimony. Know Your Customer (KYC) norms introduce identity into the financial system. Once money enters the formal economy, a documented identity helps trace its path.

KYC regulations prevent anonymity, fraud and misuse. Ironically, the 0.1 per cent who exploit the system have created compliance burdens for the remaining 99.9 per cent. This clash between enforcement and convenience lies at the heart of India's KYC debate.