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Provisions under Prevention of Money Laundering Act for savings schemes

Provisions under Prevention of Money Laundering Act for savings schemes. Objective. Implementation of the following norms in the Post Offices: Know Your Customers (KYC) Customer Due Diligence (CDD)

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Provisions under Prevention of Money Laundering Act for savings schemes

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  1. Provisions under Prevention of Money Laundering Act for savings schemes

  2. Objective Implementation of the following norms in the Post Offices: • Know Your Customers (KYC) • Customer Due Diligence (CDD) • Purpose of the act is to prevent money laundering and combating financing terrorism is small savings schemes • So, the above norms are to be applied in PO transactions

  3. Know your customer • Three risk categories defined • Norms for each category spelt out.

  4. Three risk categories : Know your customer

  5. Low Risk : Norms

  6. Low Risk : Norms

  7. Medium Risk : Norms

  8. Medium Risk : Norms

  9. High Risk :

  10. High Risk :

  11. High Risk :

  12. FAQs • Minors - If account/certificate holder is minor, norms are applicable to guardians • Joint Holders- In case of joint holders , norms are applicable to all joint account/certificate holders • Attestation - Documents should be self-attested or in case of illiterate depositors should be attested by Gazetted Officer/Sarpanch/ Branch/Sub/Head/Chief Postmaster or Postman/Gram DakSewak • Delivery Agent • KYC documents already submitted - Customer who have already submitted KYC documents in any purchase, need not to submit these again. Account number/purchase application number through which KYC documents were given earlier to be mentioned. Note : Name and address of the customer should match with earlier KYC Documents. The Supervisor to pass the remarks “KYC documents already submitted vide A/C No./Regn. No.___dated____” • Deposit is made through agent - The agent should also attest all KYC documents. In case of direct investment, self attestation or attestation by Gazetted Officer is required. • Mandatory : “KYC documents Verified and attached” needs to be written by the Supervisor on account opening form or purchase application

  13. Record keeping : Documents

  14. Record keeping : Documents

  15. Record keeping : Preservation

  16. Reporting of transactions

  17. Reporting of transactions

  18. Definition of Suspicious transaction • A transaction including an attempted transaction, whether or not made in cash which, to a person acting in good faith- (i) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the schedule to the Act regardless of the value involved: or (ii) appears to be made in circumstances of unusual or unjustified complexity: or (iii) appears to have no economic rationale or bonafide purpose: or • give rise to a reasonable ground of suspicion that involve financing of the activities relating to terrorism; (v) Transaction includes deposit, w/d, exchange or transfer of funds in whatever currency, whether in cash or in cheque , payment order or other instruments or by electronic or other physical means.

  19. Instructions for existing Accounts/Certificates

  20. Instructions for existing Accounts/Certificates

  21. General instructions

  22. Penalty • In case of non-implementation of AML/CFT norms, a penalty from Rs.10,000 to Rs. 1,00,000 can be imposed under PML Act and rules in addition to disciplinary action.

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