Pages


Provisions under
Anti Money Laundering Act

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, 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.


Know your customer


Three risk categories defined


Norms for each category spelt out.


Three risk categories: Know your customer






Risk Category

Account opend and certificate

purchased

Low Risk

below Rs.50,000

Medium Risk

between Rs.50,000 to Rs.10lakh

High Risk

above Rs.10 lakh






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



Low Risk Accounts opened/Certificate purchased with initial   deposit below 50000/
Norms
Proof
Photograph
2 Recent Photographs
(3 in case of EDBO)
Identity proof
Any one of the following :
Electoral Photo identity card,
Ration card, Passport, Driving License,
POSB identity card, Govt. Identity card,
 (PPO, BPL, Job card).
Note: PAN not mandatory.
Address proof
Any one of the following :
Electoral Photo identity card, Bank/
POSB PB, Current electricity bill/
telephone bill, certificate from any
public authority including area postman GDS or BPM.





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



Medium Risk Accounts opened/Certificate
purchased with initial deposit between Rs.50,000 to
Rs.10 lakh
Norms
Proof
Photograph
2 Recent Photographs
(3 in case of EDBO)
Identity proof
Any one of the following :
Mandatory : PAN or Declaration
 in Form 60/61
Electoral Photo identity card, Ration
 card, Passport, Driving License, POSB
identity card, Govt. Identity card,
(PPO, BPL, Job card).
Address proof
Any one of the following :
Electoral Photo identity card, Bank/
POSB PB, Current electricity bill/
telephone bill.





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



High Risk Accounts opened/Certificate purchased
with initial deposit
above Rs.10 lakh
Norms
Proof
Photograph
2 Recent Photographs
(3 in case of EDBO)
Identity proof
Any one of the following :
Mandatory : PAN or Declaration
in Form 60/61
Electoral Photo identity card,
 Ration card, Passport, Driving License,
 POSB identity card, Govt. Identity card, (PPO, BPL, Job card).
Address proof
Any one of the following :
Electoral Photo identity card, Bank/
POSB PB, Current electricity bill/
telephone bill.
Additional requirement
Copy of source of funds and
physical verification of address
 before opening of account.





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.


               

       Record Keeping: Know your customer

       Record keeping and preservation of documents assumes very high significance in this exercise.

      How the documents collected for accounts and certificates of various risk categories should be handled

       Preservation of records

       Record keeping : Documents

HO
KYC documents (including those received from EDBOs or SOs )should be attached with Account Opening Forms and kept in guard files.
KYC documents
(including received from
EDBOs) should be
attached with Purchase
 Application Forms and
 kept in guard files.
SO
For SB/TD/PPF KYC documents should be attached with Account Opening Form and sent to HO and for RD/MIS/SCSS kept in guard files.
KYC documents should be
 attached with Purchase
 Application Forms and
kept in guard files.
BO
KYC Documents should be attached with account opening form and sent to Account Office.
KYC Documents should be attached with Purchase Application
form and sent to
Account Office.

        

Record keeping : Documents


HO
One photo should be pasted in Passbook and other attached with Account Opening form.
APM to
Attest
Photo
graph
from ID
proof.
SO
One photo should be pasted in the Passbook and one in the SS Book
SPM to
Attest
Photo
graph from
 ID proof.
BO
One photo should be pasted in the Passbook and one in the SS Book
BPM to
Attest
Photograph
 from
ID proof.

        

Record keeping : Preservation


Record relating of all transactions to be preserved by SBCO
10 yrs
All Purchase Applications alongwith KYC documents
10 yrs after discharge.
At the time of closure of account, account opening form alongwith KYC
 documents should be attached with closure voucher and transferred
 to SBCO



Reporting of transactions


Category (Cash Transaction)
Method of monitoring
All cash transactions exceeding 10,00,000/-
Prepare list & send to :
Head of Division on 3rd  of  following month.
Head of the Division to
 Circle by 5th 
Head of the Circle to
Principal officer at
Directorate by 8th 
All cash transactions in series which are less than 10,00,000/- at a time but are integrated & total exceeds 10,00,000/- in a month
Category (Suspected Transaction)
Method of monitoring
Cash is accepted & Forged or counterfeit currency notes used or forgery of Security or documents
Prepare list & send to :
Head of Division on
next working day.
Head of the Division to
 Circle by next working
 day of receipt from PO
Head of the Circle to
Principal officer at
 Directorate by  next
working day  of receipt
from Head of the
 Division.
Any attempted transaction of Forged or counterfeit currency notes used or forgery of Security or documents
Suspected transaction

        

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;

iv) 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.



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

Types of measures to be taken
Procedure
KYC
In case of difference in Sign.,
transfer of account and revival
of silent accounts, all KYC
documents are to be collected
Record keeping
Same as prescribed for new accounts/certificates.
Reporting
Same as prescribed for new accounts/certificates
Suspected transaction
Report be sent immediately as
 prescribed for new customer

        

 Remittances
Domestic/International

       Objective

 Implementation of the following norms in the Post Offices :

ü  Know Your Customers (KYC)

ü  Customer Due Diligence (CDD)

       For the purpose of implementations of provisions on prevention of Money laundering Act, MOF Department of Economic affairs (Budget division) has formulated the Prevention of money laundering & combating of financing Terrorism in money remittance. The above norms are to be applied in Post Office transactions.

       Four risk categories : Know your customer



Risk Category
All domestic
 remittances under MO,iMO,
eMO,VPMO,IPO and FPO
which are up to value
Low Risk
of Rs.5000/-
Medium Risk
above Rs.5000/- and up to
 Rs.50,000
Risk Category
All international
remittances under money
transfer services like Western
 Union, IFS, Money Order
Videsh etc. and any domestic
 remittance value of which
High Risk
is  above Rs.50,000/- and
up to Rs.10 lakh.
Very High Risk
above Rs.10 lakh.





Low Risk : Norms- Four risk categories : Know your customer


Low Risk Category All domestic remittances under MO,iMO,eMO,VPMO,IPO and FPO which
are up to value of Rs.5000/-
Norms
Proof
Photograph
No KYC required.
Identity proof
Address proof





Medium Risk : Norms- Four risk categories : Know your customer


Medium Risk Category all domestic remittances under MO,iMO,eMO,VPMO,IPO and FPO which are up to
 value above Rs.5000/- and up to Rs.50,000
Norms
Proof
Identity proof
Copy of the following ID Proof for
the remitter as well as the payee :
PAN Card (ii) Electoral Photo Identity card (iii) Ration Card (iv) Passport, Driving License (v) Any
Photo Identity card issued by Central/
State Government or PSU.



 High Risk : Norms- Four risk categories : Know your customer


High Risk Category All international remittances
under money transfer services like Western Union,
 IFS, Money Order Videsh etc. and any domestic
remittance value of which is  above Rs.50,000/-
and up to Rs.10 lakh.
Norms
Proof
Identity proof
Copy of the following ID Proof for the remitter as well as the payee :
PAN Card (ii) Electoral Photo Identity card
 (iii) Ration Card (iv) Passport, Driving License
(v) Any Photo Identity card issued by Central/
State Government or PSU.
Address proof
Copy of the following address proof for the
remitter as well as the payee :
Electoral Photo identity card, Bank/POSB
PB, Current electricity bill/telephone bill.
Additional requirement
Copy of source of funds and physical
 verification of address before opening
of account.







Very High Risk : Norms- Four risk categories : Know your customer




Very High Risk Category All international remittances
under money transfer services like Western Union,
IFS, Money Order Videsh etc. and any domestic
 remittance value of which is  above Rs.50,000/-
and up to Rs.10 lakh
Norms
Proof
Identity proof
Copy of the following ID Proof for the
remitter as well as the payee :
PAN Card (ii) Electoral Photo Identity card
(iii) Ration Card (iv) Passport, Driving License
 (v) Any Photo Identity card issued by Central
/State Government or PSU.
Address proof
Physical Verification of address:-
Copy of the following address proof for
the remitter as well as the payee :
Electoral Photo identity card, Bank/POSB
PB, Current electricity bill/telephone bill.
Address of such remitters should be got
verified from State Govt./Gram Panchayat/
Postman of that area before acceptance of
remittance
Additional requirement
Copy of the document proving source from
 which fund are received by remitter.





 


Record keeping


HO
KYC documents should be attached with
office copy of booking and payment
voucher.
SO
KYC documents should be attached with
 office copy of booking and payment
voucher.

 


Reporting of transactions


Category (Cash Transaction)
Method of monitoring
All cash remittances exceeding 1000000/-
Prepare list & send to Head
of Division on 3rd  of  following month.
Head of the Division to Circle
by 5th 
Head of the Circle to Principal
officer at Directorate by 8th 
All cash remittances in series which are less than 1000000/- at a time but are integrated & total exceeds 1000000/- in a month  in the name of same customer.
Category (Suspected Transaction)
Method of monitoring
Cash is accepted & Forged or counterfeit currency notes used or forgery of Security or documents
Prepare list & send to Head
 of Division on next working
day. Head of the Division
 to Circle
 by next working day of
 receipt from PO
Head of the Circle to
Principal officer at Directorate by  next working day  of receipt from Head of
 the Division.
Any attempted remittance of Forged or counterfeit currency notes used or forgery of Security or documents

        

Penalty


        In case of non-implementation of AML/CFT norms, a penalty   from Rs.10000 to Rs. 100000 can be imposed under PML Act and rules in addition to disciplinary action.

No comments:

Post a Comment