Key Definitions in Anti-Money Laundering Rules: Aadhaar, Client Due Diligence, Suspicious Transactions, and Compliance Roles

The Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, outlines definitions crucial for the implementation of anti-money laundering measures. Key terms include "Act," referring to the Prevention of Money-Laundering Act, 2002; "Aadhaar number," as defined by the Aadhaar Act, 2016; and "client due diligence," which involves verifying client identity using reliable sources. "Designated Director" and "Designated Officer" are roles ensuring compliance within reporting entities. The rules also define "suspicious transactions" and specify what constitutes an "officially valid document" for identity verification. These provisions aim to enhance the transparency and accountability of financial transactions.