January 2011
Know Your Customer (KYC) Norms/Anti-Money Laundering (AML), Standards/Combating the Financing of Terrorism (CFT)/Obligation of Authorised Persons under Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendme
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
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Part C : RBI/FEMA
Given below are the
highlights of certain RBI Circulars.
32. Know Your Customer (KYC)
Norms/Anti-Money Laundering (AML), Standards/Combating the 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 — Cross-Border Inward Remittance under Money Transfer
Service Scheme.
This Circular advices
Authorised Persons (AP) and their sub-agents (for whom they are responsible
under MTSS) to not only take into account the risks arising from the
deficiencies in the AML/CFT regime of certain jurisdictions, as identified in
the Financial Action Task Force (FATF) Statement, issued from time to time,
while dealing with the individuals or businesses from these jurisdictions but in
addition also consider using publicly available information for identifying
countries, which do not or insufficiently apply the FATF Recommendations.
AP are further advised to
examine the background and purpose of transactions with persons (including legal
persons and other financial institutions) from jurisdictions included in FATF
Statements and countries that do not or insufficiently apply the FATF
Recommendations and where the transactions have no apparent economic or visible
lawful purpose, written findings together with all the documents should be
retained and made available to the Reserve Bank/other relevant authorities, on
request.
A.P. (DIR Series) Circular
No. 24,
dated 13-12-2010
A.P. (FL/RL Series) Circular
No. 5,
dated 13-12-2010
