Anti-money laundering act kicks off
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Banks, financial institutions and intermediaries including stock market intermediaries such as brokers would be required to maintain records of all cash transactions, exceeding Rs 10 lakh from Friday. This would be a necessity under the Prevention of Money Laundering Act, ‘02 (PMLA) which comes into force from Friday. The Act makes it clear that even if the value of individual cash transactions is less than Rs 10 lakh each, but are seemingly between related parties and takes place in a month, records would have to be maintained. The information would have to be provided to Financial Intelligence Unit, India (FIU-IND), a multi-disciplinary unit created by the government to establish links between suspicious or unusual financial transactions and underlying criminal activities. This means banks and FIs including chit funds, co-operative banks, housing finance companies and non-banking financial entities would also be required to keep records of every transaction that appears to be suspicious, even if it was not a cash transaction, a finance ministry release said here today. More : economictimes.indiatimes.com |