RBI/2009-10/429
DBOD. AML.BC. No. 95 /14.01.001/2009-10
April 23, 2010
The Chairmen and Chief Executive Officers
(All Scheduled Commercial Banks excluding RRBs)/
All India Financial Institutions/ Local Area Banks
Dear Sir,
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)
Amendment Rules, 2010 - Obligation of banks/All India Financial institutions
Government of India vide its Notification No. 7/2010-E.S.F.No.6/8/2009-E.S dated
February 12, 2010 has amended 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.
A copy of the Notification is
enclosed for ready reference.
- The salient features of the amendment inter alia require banks and All India
Financial Institutions:
- to maintain the records of all transactions including the records of
transactions detailed in rule 3 sub-rule (1).
- the records referred to in rule 3 should contain all necessary information
specified by the Regulator to permit reconstruction of individual transactions
including the information detailed in rule 4.
- Further, in rule 9 in sub-rule (1A) an explanation of 'beneficial owner' has
been inserted in terms of which " 'Beneficial Owner' shall mean the natural
person who ultimately owns or controls a client and or the person on whose
behalf a transaction is being conducted, and includes a person who exercise
ultimate effective control over a juridical person".
- Banks/financial institutions are advised to strictly follow the amended
provisions of PMLA Rules and ensure meticulous compliance to these Rules.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encl: As above