RBI/2009-10/448
RPCD.CO RRB.AML.BC.No. 80/03.05.33(E)/2009-10, Dated: May 06, 2010
The Chairman
All Regional Rural Banks (RRBs)
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
Please refer to our circular RPCD.CO.RRB.AML.BC.NO. 49/03.05.33(E)/2009-10 dated January 28, 2010.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.
2. The salient features of the amendment inter alia require RRBs:
- 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.
3. 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”.
4. RRBs are advised to strictly follow the amended provisions of PMLA Rules and ensure meticulous compliance to these Rules.
5. Please acknowledge the receipt of circular to our Regional Office concerned.
Yours faithfully,
(R.C.Sarangi)
Chief General Manager
It is not clear if the present guidelines regarding Bank Audits include this aspect also for the CA firms to examine. If not, this should be done immediately and all auditors duly sensitised in this respect.
This circular is addressed to RRBs alone. But what about the Banking industry in general? Do similar rules operate in respect of them too?