RBI for watch on transactions above Rs 10 lakh
0 views
Skip to first unread message
N.Sukumar
May 23, 2008, 1:28:42 AM5/23/08
to Kences1
Tightening the anti-money laundering norms, the Reserve Bank of India
on Thursday made it mandatory for banks to report all suspicious
transactions, including all those over Rs 10 lakh, to the directorate
of financial intelligence.
“The banks should report information in respect of all transactions
referred under Rule 3 to the Director, Financial Intelligence Unit-
India (FIU-IND),” RBI said in a notification.
More India business stories | Stock tips on your mobile
In addition to suspicious transactions, the Rule 3 includes all cash
transactions of more than Rs 10 lakh; series of connected transactions
with aggregate value of Rs 10 lakh; and cash transactions where forged
currency notes are used. The RBI has asked the banks not to alert the
customer about the transactions being reported to the FIU-IND.
The notification said, “Banks should report all such attempted
transactions in STRs (Suspicious Transaction Reports), even if not
completed by the customers, irrespective of the amount.”
The RBI said banks should include transactions in the STRs if they
have reasonable ground that these involve proceeds of crime, though
the amount may be below threshold limit prescribed by the Prevention
of Money Laundering Act. Turn to p12
RBI has also asked the banks to put in place appropriate software “to
throw alerts when the transactions are inconsistent with risk
categorisation and updated profile of customers”.
The appropriate software, it added, is essential for the effective
identification and reporting of suspicious transactions. In case, all
branches of a bank are not computerised, RBI said the principal
officer of the bank concerned should cull out the transaction details
and file the Cash Transaction Report (CTR) and STR in electronic form
with the FIU-IND.
It said that bank branches should report transactions every month to
the principal officer, who, in turn, should ensure submission of CTRs
to the Financial Intelligence Unit within the prescribed time limit.
More India business stories | Stock tips on your mobile
The central bank has clarified that individual cash transaction below
Rs 50,000 need not be mentioned in the CTRs. While advising the banks
to preserve records of such transactions for at least 10 years, the
notifications said such documents should be made available to the
auditors connected with scrutiny of transaction, the Reserve Bank and
other relevant authorities.
Through the notification, the RBI has tightened the rules issued in
February 2006 in pursuance of the Prevention of Money Laundering Act.
N.Sukumar
Research Analyst
on Thursday made it mandatory for banks to report all suspicious
transactions, including all those over Rs 10 lakh, to the directorate
of financial intelligence.
“The banks should report information in respect of all transactions
referred under Rule 3 to the Director, Financial Intelligence Unit-
India (FIU-IND),” RBI said in a notification.
More India business stories | Stock tips on your mobile
In addition to suspicious transactions, the Rule 3 includes all cash
transactions of more than Rs 10 lakh; series of connected transactions
with aggregate value of Rs 10 lakh; and cash transactions where forged
currency notes are used. The RBI has asked the banks not to alert the
customer about the transactions being reported to the FIU-IND.
The notification said, “Banks should report all such attempted
transactions in STRs (Suspicious Transaction Reports), even if not
completed by the customers, irrespective of the amount.”
The RBI said banks should include transactions in the STRs if they
have reasonable ground that these involve proceeds of crime, though
the amount may be below threshold limit prescribed by the Prevention
of Money Laundering Act. Turn to p12
RBI has also asked the banks to put in place appropriate software “to
throw alerts when the transactions are inconsistent with risk
categorisation and updated profile of customers”.
The appropriate software, it added, is essential for the effective
identification and reporting of suspicious transactions. In case, all
branches of a bank are not computerised, RBI said the principal
officer of the bank concerned should cull out the transaction details
and file the Cash Transaction Report (CTR) and STR in electronic form
with the FIU-IND.
It said that bank branches should report transactions every month to
the principal officer, who, in turn, should ensure submission of CTRs
to the Financial Intelligence Unit within the prescribed time limit.
More India business stories | Stock tips on your mobile
The central bank has clarified that individual cash transaction below
Rs 50,000 need not be mentioned in the CTRs. While advising the banks
to preserve records of such transactions for at least 10 years, the
notifications said such documents should be made available to the
auditors connected with scrutiny of transaction, the Reserve Bank and
other relevant authorities.
Through the notification, the RBI has tightened the rules issued in
February 2006 in pursuance of the Prevention of Money Laundering Act.
N.Sukumar
Research Analyst
Reply all
Reply to author
Forward
0 new messages