The purpose of this study is to analyse the perception towards Anti-Money Laundering and Know Your Customer measures in Indian Banking Industry and the level of compliance in public and its perceived trustworthiness. The research used quantitative method of research conducting a survey study in which questionnaires were given to customers of the bank which yielded 237 respondents and analysis such as ANOVA and T- test were done using SPSS software. The result show that there is lack of awareness and knowledge on customers about AML and KYC regulation and this has impact on customer acceptance and compliance. Further, the research reveals that the level of trust in the banks is affected by issues relating data protection and compliance regulations’ difficulty. These insightful findings highlight the need for targeted educational campaigns and transparent communication strategies to enhance and promote the customer engagement and trust.