30-03-2012, 01:34 PM
Anti-Money Laundering Guidelines
Anti-Money_Laundering[1].ppt (Size: 343.5 KB / Downloads: 50)
What is Money Laundering
Section 3 of the Prevention of Money Laundering Act (PMLA), 2002 defines the offence of money laundering as
“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering”.
'Money Laundering' is the process by which illegal funds and assets are converted into legitimate funds and assets.
The AML Transition in India for Banks
August 16, 2002 - The Reserve Bank of India (RBI) released its first circular on “Guidelines on "Know Your Customer" norms and “Cash transactions”
January 17, 2003 – Prevention of Money Laundering Act (PMLA) published in the Gazette of India.
November 24, 2004 - The first set of comprehensive guidelines on 'Know Your Customer' (KYC) Guidelines – Anti Money Laundering Standards issued.
July 1, 2005 – PMLA Rules came into effect.
November 27, 2006 – India becomes an 'observer' at the Financial Action Task Force (FATF)
November 12, 2009 – Amendment to PMLA Rules, 2005
June 25, 2010 – India becomes a member of the FATF
Background of PMLA
The Prevention of Money Laundering Act, 2002 has come into effect from 1st July 2005. Necessary Notifications / Rules under the said Act have been published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, Government of India.
As per the provisions of the Act, every banking company, financial institution and intermediary shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules under the PMLA .
AML MEASURES INCLUDE:
Identification of customer according to KYC norms
Photocopies
Identity Proof documents
Address proof documents
Pan card
Recognition, handling and Disclosure of suspicious Transactions
Appointment of Money Laundering Reporting officer
Staff Training
Maintenance of Records