TaxTMI 
TaxTMI 
Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT)/ Obligation of Authorised Persons under Prevention of Money-Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009- Money changing activities-Suspicious Transaction Reporting Format
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....tion of Money-Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009- Money changing activities-Suspicious Transaction Reporting Format Attention of Authorized persons is invited to the Anti-Money Laundering Guidelines for Authorised Money Changers (AMCs) governing money changing transactions, issued vide A.P. (DIR Series) Circular No. 18 [A.P. (FL Series) Circular No. 01] dated December 02, 2005. 2. Government of India vide the Prevention of Money Laundering (Amendment) Act, 2009 (21 of 2009) has amended the PMLA and the amendment has come into force with effect from June 1, 2009. The amendment, inter alia, has brought authorized persons within the definition of "Financial Institutions"....
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....ns contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999), Prevention of Money-Laundering Act, (PMLA), 2002 (as amended form time to time), and 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. Yours faithfully, (Salim Gangadharan) Chief General Manager-in-C....
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....ds 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 (hereinafter referred to as the principal rules),- In rule 2, in sub-rule(1), - (a) after clause (c), the following clause shall be inserted, namely:- '(ca) "non profit organisation" means any entity or organisation that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a company registered under section 25 of the Companies Act, 1956 (1 of 1956);'; (b) after clause (f),&nbs....
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....e Board of India, or the Insurance Regulatory Development Authority, as the case may be,", where ever they occur, the words, "its Regulator,", shall be substituted. 5. In the principal rules, for rule 6, the following rule shall be substituted, namely:- "6. Retention of records of transactions- The records referred to in rule 3 shall be maintained for a period of ten years from the date of transactions between the client and the banking company, financial institution or intermediary, as the case may be.". 6. In the principal rules, in rule 7, for the words "the Reserve Bank of India or the Securities and Exchange Board of India, or the Insurance Regulatory Development Authority, as the case....
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....institution and intermediary, as the case may be, shall identify the beneficial owner and take all reasonable steps to verify his identity. (1 B) Every banking company, financial institution and intermediary, as the case may be, shall exercise ongoing due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the customer, his business and risk profile. (1 C) No banking company, financial institution or intermediary, as the case may be, shall keep any anonymous account or account in fictitious names. (2) Where the client is an individual, he shall for the purpose of sub-rule (1), submit to the banking company, fin....