Government of India vide the Prevention of Money Laundering (Amendment) Act, 2009 (21 of 2009) has amended the PMLA and the amendment has come into force with effect from June 1, 2009. The amendment, inter alia, has brought authorized persons within the definition of "Financial Institutions" under Section 2(l) of the Act. Accordingly, in terms of Section 12 of the Act and the rules made there under, authorized persons are required to furnish information to Financial Intelligence Unit-India (FIU-IND) in the prescribed format. Government of India vide its Notification No.13/2009/F.No.6/8/2009-ES dated November 12, 2009, has also amended Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. A copy of the amendment Notification is annexed.
Accordingly, all authorized persons are advised to furnish Suspicious Transaction Report (STR) to FIU-IND in respect of their money changing activities within 7 days of arriving at a conclusion that a transaction, including attempted transaction, whether or not made in cash, or a series of transaction integrally connected are of suspicious nature. The formats of STR, both manual and electronic, have been made available by FIU-IND in their website http://fiuindia.gov.in.
The STR formats prescribed would also be applicable to all franchisees of authorised persons and it will be the sole responsibility of the franchisers to ensure that their franchisees also adhere to the said reporting requirements.
The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999), Prevention of Money-Laundering Act, (PMLA), 2002 (as amended form time to time), and Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005, as amended from time to time. Non-compliance with the guidelines would attract penal provisions of the Acts concerned.
Click the title for the text of the Notification.
Posts
