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February 2010

Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) / Obligation of Authorized Persons under Prevention of Money-Laundering Act, (PMLA) 2002, as amended by Prevention of Money Laundering Act,

By Pinky Shah
Sonalee Godbole
Gaurang Gandhi
Tarun Ghia
Nimesh Dedhia
Vijay Kewalramani
Chartered Accountants
Reading Time 2 mins
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Part C:
FEMA

Given below are the highlights of certain RBI
circulars, press notes and notifications

 

28 A. P. (DIR Series) Circular No. 15, dated
November 19, 2009

A. P. (FL/RL Series) Circular No. 2

Notification No. 13/2009/F. No. 6/8/2009 – ES,
dated November 12, 2009

 

Know Your Customer (KYC) norms / Anti-Money
Laundering (AML) standards / Combating of Financing of Terrorism (CFT) /
Obligation of Authorized Persons under Prevention of Money-Laundering Act, (PMLA)
2002, as amended by Prevention of Money Laundering Act, 2009 – Money changing
activities – Suspicious Transaction Reporting Format

 

This circular states that the Prevention of Money
Laundering (Amendment) Act, 2009 has brought
authorised persons within the definition of “Financial Institutions” under
Section 2(1) of the Prevention of Money-Laundering Act, 2002. As a result,
authorised persons are required to furnish information to the Financial
Intelligence Unit – India (FIU-IND) in the prescribed format. The procedure and
manner of maintaining records, etc., as notified by the Government of India, are
annexed to this circular.

Authorised persons / franchisees of authorised
persons are required to furnish Suspicious Transaction Report (STR) to FIU-IND
in respect of money changing activities within 7 days of arriving at a
conclusion that a transaction / attempted transaction, whether made in cash or
otherwise, or a series of transactions integrally connected are of a suspicious
nature. The formats of STR can be downloaded from the website of FIU-IND –
http://fiuindia.gov.in.

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