| Date: |
19-05-2011
|
| Notification No: |
RBI/2010-11/531 A.P. (DIR Series) Circular No. 61
|
| Issuing Authority: |
RBI
|
| Type: |
A.P.D.(Series) Circulars
|
| File No: |
RBI/2010-11/531 |
| Subject: |
KYC Norms/Anti-Money Laundering Standards/Combating Financing of Terrorism/Obligation of Authorised Persons under PMLA, 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009- Money Changing Activities
|
RBI/2010-11/531
A.P. (DIR Series) Circular No. 61
May 16, 2011
To,
All Authorized Persons
Madam/ Dear 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, as amended by Prevention of
Money Laundering (Amendment) Act, 2009- Money changing activities
Attention of Authorized persons is invited to Paragraph 4.4 (e) (i), 4.4 (e)
(ii) and 4.13 (i) of F-Part-I of the Annex to A.P. (DIR Series) Circular No.17
{A.P. (FL/RL Series) Circular No. 4} dated November 27, 2009.
- On a review, it has been decided to amend the instructions contained in the
said paragraphs. The amended instructions are given in the
Annex.
- All the other instructions contained in A.P.(DIR Series) Circular No.17 {A.P.
(FL/RL Series) Circular no.4} dated November 27, 2009 shall remain unchanged.
- Authorised Persons should bring the contents of this Circular to the notice
of their constituents and customers concerned.
- The directions contained in this Circular have been issued under Sections
10(4) and 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 by
the Prevention of Money Laundering (Amendment) Act, 2009 and the Prevention of
Money-Laundering (Maintenance of Records of the Nature and Value of
Transactions, the Procedure and Manner of Maintaining and Time for Furnishing
Information and Verification and Maintenance of Records of the Identity of the
Clients of the Banking Companies, Financial Institutions and Intermediaries)
Rules, 2005 as amended from time to time. Non-compliance with the guidelines
would attract penal provisions of the Acts concerned or Rules made there under.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge
Annex
[Annex to A. P. (DIR Series) Circular No. 61
{A.P.(FL/RL Series Circular No. }
dated May 16, 2011]
| Paragraph No. [ cf. F-Part-I [Annex to A.P. (DIR Series) Circular No.17 {A.P.
(FL/RL Series) Circular No. 4 dated November 27, 2009]
|
Existing Instructions
|
Amended Instructions |
| 4.4 e (i) Purchase of foreign exchange from customers
|
For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount less than US $ 200 or its equivalent, photocopies of
the identification document need not be obtained. However, full details of the
identification document should be maintained. |
For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount equivalent to or less than Rs. 50,000/-, photocopies of
the identification document need not be obtained. However, full details of the
identification document should be maintained.
If the Authorised Person has reason to believe that a customer is intentionally
structuring a transaction into a series of transactions below the threshold of
Rs.50000/-, the A.P. should verify identity and address of the customer and also
consider filing a suspicious transaction report to FIU-IND. |
| 4.4 e (ii) |
For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount in excess of US $ 200 or its equivalent, the |
For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount equivalent to or in excess of Rs.50,000/-, the documents, as mentioned at (F-Part-II) annexed to the A.P. (DIR Series) Circular No.17 {A.P.(FL/RL Series) Circular No.4} dated November 27, 2009, should be verified and copies retained. |
| 4.4 e (vi) |
In case of any suspicion of money laundering or terrorist financing,
irrespective of the amount involved, enhanced Customer Due Diligence (CDD)
should be applied. |
In case of any suspicion of money laundering or terrorist financing,
irrespective of the amount involved, enhanced Customer Due Diligence (CDD)
should be applied.
Whenever there is suspicion of money laundering or terrorist financing or when
other factors give rise to a belief that the customer does not, in fact, pose a
low risk, APs should carry out full scale Customer Due Diligence (CDD) before
undertaking any transaction for the customer. |
| 4.13 (i) Maintenance of records of transactions
|
APs should introduce a system of maintaining proper record of transactions
prescribed under Rule 3, as mentioned below: |
APs should introduce a system of maintaining proper record of transactions
prescribed under Rule 3, as mentioned below: |
|
a) all cash transactions of the value of more than Rupees Ten Lakh or its
equivalent in foreign currency; |
a) all cash transactions of the value of more than Rupees Ten Lakh or its
equivalent in foreign currency; |
|
b) all series of cash transactions integrally connected to each other which have
been valued below Rupees Ten Lakh or its equivalent in foreign currency where
such series of transactions have taken place within a month; and
|
b) all series of cash transactions integrally connected to each other which have
been valued below Rupees Ten Lakh or its equivalent in foreign currency where
such series of transactions have taken place within a month and the aggregate
value of such transactions exceeds Rupees Ten Lakh; |
|
c) all suspicious transactions whether or not made in cash and by way of as
mentioned in the Rules. |
c) all transactions involving receipts by non-profit organisations of value more
than Rupees ten lakh or its equivalent in foreign currency [Ref: Government of
India Notification dated November 12, 2009- Rule 3,sub-rule (1) clause (BA) of
PML Rules]; |
|
|
d) all cash transactions where forged or counterfeit currency notes or bank
notes have been used as genuine and where any forgery of a valuable security or
a document has taken place facilitating the transaction; and |
|
|
e) All suspicious transactions whether or not made in cash and by way of as
mentioned in the Rules. |
|
|
|