Anti money laundering guidelines by rbi. RBI GUIDELINES UNDER ANTI 2022-11-16
Anti money laundering guidelines by rbi Rating:
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RBI GUIDELINES UNDER ANTI
In cases where services offered by a third party service providers are utilized. However, while preparing customer profile banks should take care to seek only such information from the customer which is relevant to the risk category and is not intrusive. Details of due diligence conducted may be kept on record with the company for verification. These requirements may be moderated according to the risk perception e. The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search — well, at least we think so but you be the judge. The exact date of transition from the old reporting format to the new format will to be communicated separately.
Unusual termination of policies; 13. Such records must be sufficient to permit reconstruction of individual transactions including the amounts and types of currency involved if any so as to provide, if necessary, evidence for prosecution of criminal activity. However, for the purpose of proper due diligence, Insurers may seek the other necessary documents. If the layering process has succeeded, integration schemes place the laundered proceeds back into the economy in such a way that they re-enter the financial system appearing to be normal business funds. It shall be ensured that there is no tipping off to the customer at any level. Some illustrative examples of customers requiring higher due diligence were also given in the paragraph under reference.
Guidelines on Anti Money Laundering & Counter Financing of Terrorism
Beneficiaries should be identified when they are defined. However, the extent of monitoring will depend on the risk sensitivity of the account. Shell banks are not permitted to operate in India. Banks may hold 'pooled' accounts managed by professional intermediaries on behalf of entities like mutual funds, pension funds or other types of funds. In these cases the policy may require that only basic customer identity and location verification requirements be met.
A copy of such information shall be retained by the Principal Officer for the purposes of official record. Inflated or totally fraudulent claims e. . Insurers should retain the records of those contracts, which have been settled by claim or cancelled, for a period of at least five years after that settlement. Banks should pay special attention to any money laundering threats that may arise from new or developing technologies including internet banking that might favour anonymity, and take measures, if needed, to prevent their use in money laundering schemes. The identification records and transaction data should be made available to the competent authorities upon request. This can be achieved by introducing a unique identification code for each customer.
Powers of Director to impose fine. Frequent free look cancellation by customers; 3. An Indicative List of Suspicious Activities Transactions Involving Large Amounts of Cash Company transactions, that are denominated by unusually large amounts of cash, rather than normally associated with the normal commercial operations of the company, e. These documents should be in the name of the proprietary concern. Media reports about a customer; 11. Provided also that where the client submits his proof of possession of Aadhaar number as an officially valid document, he may submit it in such form as are issued by the Unique Identification Authority of India. Where the client is a trust, the banking company and financial institution, as the case may be, shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the identity of the settler of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.
Rules 9 in the Prevention of Money-laundering Maintenance of Records of the Nature and Value of Transactions, the of the Banking Companies, Financial Institutions and Intermediaries Rules, 2005. The recommendations of the Committee have since been accepted by the Government of India and needs to be implemented. Date i April 5, 2006 ii August 5, 2008 iii November 13, 2009 iv April 23 , 2010 v April 23 , 2010 vi April 30, 2010 vii May 26, 2010 ix August 26, 2010 x October 28, 2011 xi October 16 , 2012 1Inserted vide 4Inserted vide April 14, 2015 Dear All Welcome to the refurbished site of the Reserve Bank of India. We will now use Twitter albeit one way to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy. Appointment of Principal Officer 10. Government of India has since examined the issue and has specified the procedure for determination of Beneficial Ownership. Very high account turnover inconsistent with the size of the balance maintained may indicate that funds are being 'washed' through the account.
Facilitating opening of bank accountsfor flood affected persons: Anti Money Laundering Guidelines By Rbi. Considering the potential threat of usage of the financial services by a money launderer, insurers should make reasonable efforts to determine the true identity of customer s. If so, banks may insist on receipt of satisfactory evidence of the identity of the intermediaries and of the persons on whose behalf they are acting, as also obtain details of the nature of the trust or other arrangements in place. When local applicable laws and regulations prohibit implementation of these guidelines, the same should be brought to the notice of Reserve Bank. Refund of proposal deposit by cancelling the proposal on request of the customer; 10.
Banks should examine the control structure of the entity, determine the source of funds and identify the natural persons who have a controlling interest and who comprise the management. With this makeover, we also take a small step into social media. Accounts of non-face-to-face customers With the introduction of telephone and electronic banking, increasingly accounts are being opened by banks for customers without the need for the customer to visit the bank branch. Rules 9 4 Where the client is a partnership firm, it shall for the purposes of sub-rule 1 submit to the banking company, or the financial institution, or the intermediary one certified copy of the following documents:— i registration certificate; ii partnership deed; and iii an officially valid document in respect of the person holding an attorney to transact on its behalf. Client due diligence measures, including requirements for proper identification; 3. The procedure as advised by the Government of India is as under: A. Assignments to unrelated parties without valid consideration; 4.
Where funds held by the intermediaries are not co-mingled at the bank and there are 'sub-accounts', each of them attributable to a beneficial owner, all the beneficial owners must be identified. Banks can use any additional proof such as letter delivered by post for further address verification. Department of Communication Reserve Bank of India. In case of more understanding and clarity on subject matter do consult with insurance advisors. Policy from a place where he does not reside or is not employed; 6. Such disclosures are protected by law, enabling the person with information to be able to disclose the same without any fear.
Every bank should set key indicators for such accounts, taking note of the background of the customer, such as the country of origin, sources of funds, the type of transactions involved and other risk factors. Illustrative examples of low risk customers could be salaried employees whose salary structures are well defined, people belonging to lower economic strata of the society, government departments and government owned companies, regulators and statutory bodies. Client accounts opened by professional intermediaries When the bank has knowledge or reason to believe that the client account opened by a professional intermediary is on behalf of a single client, that client must be identified. The correspondent bank should also ensure that the respondent bank is able to provide the relevant customer identification data immediately on request. The front desk staff needs to be specially trained to handle such situations while dealing with customers. Frequent request for change in addresses; 7.