RBI/2013-14/643
A. P. (DIR Series) Circular No. 144
June 16, 2014
To,
All Authorised Persons, who are Indian Agents under Money Transfer Service
Scheme (MTSS)
Madam / Sir,
Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/
Combating the Financing of Terrorism (CFT)/ Obligation of Authorised Persons
under Prevention of Money Laundering Act (PMLA), 2002 - Amendment to Section
13(2) - Cross Border Inward Remittance under Money Transfer Service Scheme
Please refer to our A.P. (DIR Series) Circular No.18 [A.P. (FL Series)
Circular No. 05] dated November 27, 2009 on ‘Know Your Customer (KYC)
norms/Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism
(CFT)/Obligation of Authorised Persons under Prevention of Money Laundering Act,
(PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act,
2009- Cross Border Inward Remittance under Money Transfer Service Scheme’, as
amended from time to time.
2. With the enactment of Prevention of Money Laundering (Amendment) Act, 2012
and amendment to Section 13 of the Act which provides for “Powers of Director to
impose fine”, the section 13(2) now reads as under:
“If the Director, in the course of any inquiry, finds that a reporting entity or
its designated director on the Board or any of its employees has failed to
comply with the obligations under this Chapter, then, without prejudice to any
other action that may be taken under any other provisions of this Act, he may—
- issue a warning in writing; or
- direct such reporting entity or its designated director on the Board or any
of its employees, to comply with specific instructions; or
- direct such reporting entity or its designated director on the Board or any
of its employees, to send reports at such interval as may be prescribed on the
measures it is taking; or
- by an order, levy a fine on such reporting entity or its designated director
on the Board or any of its employees, which shall not be less than ten thousand
rupees but may extend to one lakh rupees for each failure.”
3. In view of the above amendment, Authorised Persons, who are Indian Agents
under MTSS, may nominate a Director on their Boards as “designated Director” to
ensure compliance with the obligations under the Prevention of Money Laundering
(Amendment) Act, 2012.
4. The directions contained in this Circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as
amended from time to time and are without prejudice to permission /approvals, if
any, required under any other law.
Yours faithfully,
(B. P. Kanungo)
Principal Chief General Manager