REVISED GUIDELINES ON KYC NORMS/AML STANDARDS UNDER MONEY TRANSFER SERVICE SCHEME

Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT)/Obligation of Authorised Persons under the Prevention of Money Laundering Act, (PMLA), 2002, as amended by the Prevention of Money Laundering (Amendment) Act, 2009 – Cross Border Inward Remittance under the Money Transfer Service Scheme

A.P. (DIR SERIES) CIRCULAR NO. 62, DATED 16-5-2011

Attention of all Authorised Persons, who are Indian Agents under Money Transfer Service Scheme (MTSS) is invited to Paragraph 5.12(i) of Annex-I to the A.P.(DIR Series) Circular No.18 [A.P. (FL Series), Circular No. 5], dated November 27, 2009.

2. It has been decided to amend the instructions contained in the said paragraph. The amended instructions are given in the Annex.

3. All the other instructions contained in A.P. (DIR Series) Circular No. 18 [A.P. (FL Series) Circular No. 5], dated November 27, 2009 shall remain unchanged.

4. Authorised Persons (Indian Agents) should bring the contents of this Circular to the notice of their constituents and customers concerned.

5. 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 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.

ANNEX

Paragraph No. [cf. Annex-I (Annex to A.P. (DIR Series) Circular No.18 [A.P. (FL Series) Circular No. 5), dated November 27, 2009].
Existing Instructions
Amended Instructions
5.12 (i) Maintenance of records of transactions
APs (Indian Agents) 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;
(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
(c)  all suspicious transactions whether or not made in cash and by way of as mentioned in the Rules.
APs (Indian Agents) 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;
(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 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.

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