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From the 1 July 2005, the Prevention of Money Laundering Act extended to all financial institutions, and intermediaries.
Primary regulatory bodies that oversee the Indian financial sector and develop AML/CTF policies:
Established in 2004 as a central national organisation charged with the responsibility of collecting, sorting, analysing, and disseminating information about suspected financial activities to law enforcement authorities and international financial intelligence units.
The central and primary financial regulator responsible for issuing bank licences, developing and enforcing anti-money laundering and counter-terrorist financing laws. RBI adheres to FATF's anti-money laundering and counter-terrorist financing strategy. RBI is responsible for holding the banks and financial institutions accountable for compliance with applicable regulations
SEBI was created on 12 April 1992 to safeguard the interests of securities investors and to facilitate and regulate the securities market. Additionally, it provides anti-money laundering and counter-terrorist financing rules for the financial markets.
This authority is responsible for regulating, promoting, and ensuring the insurance and reinsurance industries' orderly growth.
As a designated service provider, the entity must ensure that it has a rigorous anti-money laundering/counter-terrorism financing policy in place, which includes the following:
Policies, procedures and controls to combat Money Laundering and Terrorist Financing
Focus on verifying the identities of customers, profiling of customers using risk categorisation and periodic customer review.
Monitoring of transactions with intensified monitoring of high-risk accounts
AML/CTF program, which has proper management oversight, systems and controls, segregation of duties, training etc.
Internal audits to evaluates and ensure adherence to AML/KYC policies and procedures
Appointment of a suitable compliance officer to oversee the AML program
A "one-size-fits-all" solution may not be suitable in the financial sector, each registered entity should consider the unique nature of its market, corporate structure, clients and transaction types, and other factors when adopting initiatives and procedures to ensure their effectiveness.
All AML/CTF programs must be risk-based. The risk assessment serves as the foundation for your entire anti-money laundering/counter-terrorism financing program. Your program must demonstrate clearly the connections between defined risks and the processes, practises, and controls that address those risks.
As a designated service provider, a company is required to notify
FIU-IND of certain purchases and suspicious activity. Notable ongoing reporting responsibilities are:
Suspicious Transaction Report (STR): should be provided within seven days of concluding that any transaction, whether cash or non-cash, or a sequence of transactions, linked in any way, is suspicious.
Cash Transaction Report (CTR): Monthly reports should be sent to FIU-IND by the 15th day of the following month. All cash transactions valued at more than INR 1,000,000, or the foreign currency equivalent, should be reported.
Cash Transaction Report (CTR): Monthly reports should be sent to FIU-IND by the 15th day of the following month. All cash transactions valued at more than INR 1,000,000, or the foreign currency equivalent, should be reported.
Non-profit transaction reports (NTR): For all purchases by non-profit organisations involving the receipt often lakh rupees (INR 10,00,000), or the equivalent in foreign currency.
Preservation of records for at least 10 years from the date of cessation of the transaction/business relationship.
Our clients are provided with a secure and simple solution in regard to scanning for politically exposed or high-risk individuals, as well as checking names against sanction, regulatory, law enforcement, and other official lists.
Use our sophisticated scan filters and due diligence workflow to minimise the amount of time you spend sorting through, false matches. Scan results and reporting sections allow you to access customer details, whenever and wherever required, as well as download reports, to customise for further investigation or to provide evidence of your AML program compliance for auditing purposes.
* This page is intended as general information only and should not be relied on as the sole source of information for your AML obligations and AML program. Please visit your local regulatory authority sites for the latest relevant and full information.
