PMS firms move beyond one-time KYC checks with continuous AML monitoring
PMS firms are increasingly shifting from one-time KYC checks to continuous AML monitoring as investor risk profiles can change after onboarding. New sanctions listings, PEP associations and adverse media developments are making ongoing screening and documented compliance reviews more important.
- Oct 1, 2026,
- Updated Oct 1, 2026 4:25 PM IST
The portfolio management services (PMS) industry is moving towards continuous anti-money laundering (AML) monitoring as investor risk profiles can change after onboarding, prompting firms to track sanctions, politically exposed person (PEP) links and adverse media on an ongoing basis.
KFin Technologies and the Association of Portfolio Managers in India (APMI) on October 1 launched InPro, an AML and compliance operations platform designed to support screening, continuous monitoring and case management across the PMS industry. The platform was launched by Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey at APMI’s third annual conference in Mumbai.
APMI has adopted InPro as a central AML compliance platform for its members, giving portfolio managers access to common technology infrastructure for screening and managing potential AML alerts.
Traditionally, customer due diligence and KYC processes have been heavily focused on the onboarding stage. However, an investor's risk profile can change during the relationship. A new sanctions listing, changes in customer information, a newly identified PEP connection or adverse media can introduce risk signals that were not present when the investor was initially onboarded.
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This makes periodic and continuous screening increasingly relevant for financial intermediaries, particularly as compliance teams need to identify potential risks and maintain records showing how alerts were reviewed and resolved.
InPro brings together AML screening, continuous monitoring, case management and audit trails on a single platform. PMS firms using the platform can screen investor profiles against global sanctions lists, Indian debarment lists, PEP databases, regulatory watchlists and adverse media sources.
The platform can conduct screening at onboarding and subsequently when key customer information or other relevant risk indicators change. Potential matches are routed through a Maker-Checker workflow, allowing compliance teams to investigate alerts, identify false positives, escalate cases and document the rationale behind their decisions.
The platform also maintains historical records of screening activity, alerts, review actions and decisions. This creates an audit-ready trail that can be used during regulatory or internal compliance reviews.
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The move comes as AML compliance requirements apply to all SEBI-registered portfolio managers, while firms differ significantly in their ability to invest in technology and dedicated compliance infrastructure.
APMI’s industry-level adoption of InPro is intended to provide a common technology backbone and economies of scale, particularly for smaller and mid-sized PMS firms that may find it difficult to independently build and maintain sophisticated AML systems.
The initiative also aims to bring greater consistency to how potential AML risks are screened, reviewed, documented and escalated across the PMS ecosystem.
As PMS businesses expand and investor relationships become more dynamic, the focus of AML operations is therefore shifting from a one-time verification exercise towards ongoing surveillance, structured investigation and documented decision-making.
The portfolio management services (PMS) industry is moving towards continuous anti-money laundering (AML) monitoring as investor risk profiles can change after onboarding, prompting firms to track sanctions, politically exposed person (PEP) links and adverse media on an ongoing basis.
KFin Technologies and the Association of Portfolio Managers in India (APMI) on October 1 launched InPro, an AML and compliance operations platform designed to support screening, continuous monitoring and case management across the PMS industry. The platform was launched by Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey at APMI’s third annual conference in Mumbai.
APMI has adopted InPro as a central AML compliance platform for its members, giving portfolio managers access to common technology infrastructure for screening and managing potential AML alerts.
Traditionally, customer due diligence and KYC processes have been heavily focused on the onboarding stage. However, an investor's risk profile can change during the relationship. A new sanctions listing, changes in customer information, a newly identified PEP connection or adverse media can introduce risk signals that were not present when the investor was initially onboarded.
MUST READ: Axis Pension Fund launches NPS Swasthya Scheme; what investors get from health-linked pension plan
This makes periodic and continuous screening increasingly relevant for financial intermediaries, particularly as compliance teams need to identify potential risks and maintain records showing how alerts were reviewed and resolved.
InPro brings together AML screening, continuous monitoring, case management and audit trails on a single platform. PMS firms using the platform can screen investor profiles against global sanctions lists, Indian debarment lists, PEP databases, regulatory watchlists and adverse media sources.
The platform can conduct screening at onboarding and subsequently when key customer information or other relevant risk indicators change. Potential matches are routed through a Maker-Checker workflow, allowing compliance teams to investigate alerts, identify false positives, escalate cases and document the rationale behind their decisions.
The platform also maintains historical records of screening activity, alerts, review actions and decisions. This creates an audit-ready trail that can be used during regulatory or internal compliance reviews.
ALSO READ: Fixed income outlook: Why fund managers see opportunity in Indian bonds at current yields
The move comes as AML compliance requirements apply to all SEBI-registered portfolio managers, while firms differ significantly in their ability to invest in technology and dedicated compliance infrastructure.
APMI’s industry-level adoption of InPro is intended to provide a common technology backbone and economies of scale, particularly for smaller and mid-sized PMS firms that may find it difficult to independently build and maintain sophisticated AML systems.
The initiative also aims to bring greater consistency to how potential AML risks are screened, reviewed, documented and escalated across the PMS ecosystem.
As PMS businesses expand and investor relationships become more dynamic, the focus of AML operations is therefore shifting from a one-time verification exercise towards ongoing surveillance, structured investigation and documented decision-making.