Provisions under Anti Money Laundering Act - PowerPoint PPT Presentation

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Provisions under Anti Money Laundering Act

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  1. Provisions under Anti Money Laundering Act 3(a).1

  2. Objective Implementation of the following norms in the Post Offices: • Know Your Customers (KYC) • Customer Due Diligence (CDD) • For the purpose of implementations of provisions on prevention of Money laundering Act 2002 & CFT, MOF Department of Economic affairs (Budget division) has formulated the Prevention of money laundering & combating of financing Terrorism in small savings schemes. The above norms are to be applied in Post Office transactions. 3(a).2

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

  4. Three risk categories : Know your customer 3(a).4

  5. Low Risk : Norms- Three risk categories : Know your customer

  6. Medium Risk : Norms- Three risk categories : Know your customer

  7. High Risk : Norms- Three risk categories : Know your customer

  8. 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 • 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. • Deposit is made through agent - The agent should attest all KYC documents. In case of direct investment, self attestation or attestation by Gazetted Officer is required. 3(a).8

  9. 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 • 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

  10. Record keeping : Documents

  11. Record keeping : Documents

  12. Record keeping : Preservation

  13. Reporting of transactions 3(a).12

  14. 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. 3(a).13

  15. Instructions for existing Accounts/Certificates (only in case of suspicion)

  16. Instructions for existing Accounts/Certificates (only in case of suspicion)

  17. Instructions for existing Accounts/Certificates (only in case of suspicion)

  18. 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. 3(a).15