RBI tightens anti-money laundering norms for RRBs
The Reserve Bank of India (RBI) on Wednesday made it mandatory for regional rural banks (RRBs) to report all suspicious transactions above Rs 10 lakh.
By PTI |
MUMBAI: The Reserve Bank of India (RBI) on Wednesday made it mandatory for regional rural banks (RRBs) to report all suspicious transactions above Rs 10 lakh to the directorate of financial intelligence as part of exercise to strengthen the anti-money laundering drive. The central bank had earlier on May 23 issued similar guidelines for the commercial banks.
���The banks should report information in respect of all transactions referred to in Rule 3 to the director, Financial Intelligence Unit-India (FIU-IND),��� RBI said in a notification on Wednesday.
The central bank said all documents pertaining to complex, unusual large transactions and all unusual patterns of transactions, having no apparent economic and lawful purpose, should be be examined and the findings should be properly recorded. These records should be preserved for 10 years as per the PMLA, 2002.
RBI has also asked the RRBs 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 RRBs concerned should cull out the transaction details and file the cash transaction report (CTR) and STR in electronic form with the FIU-IND.
The central bank has clarified that individual cash transaction below Rs 50,000 need not be mentioned in the CTRs. RBI through Wednesday���s notification has tightened the rules issued in February 2006 in pursuance of the prevention of Money Laundering Act.
���The banks should report information in respect of all transactions referred to in Rule 3 to the director, Financial Intelligence Unit-India (FIU-IND),��� RBI said in a notification on Wednesday.
The central bank said all documents pertaining to complex, unusual large transactions and all unusual patterns of transactions, having no apparent economic and lawful purpose, should be be examined and the findings should be properly recorded. These records should be preserved for 10 years as per the PMLA, 2002.
RBI has also asked the RRBs 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 RRBs concerned should cull out the transaction details and file the cash transaction report (CTR) and STR in electronic form with the FIU-IND.
The central bank has clarified that individual cash transaction below Rs 50,000 need not be mentioned in the CTRs. RBI through Wednesday���s notification has tightened the rules issued in February 2006 in pursuance of the prevention of Money Laundering Act.
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