Quick look at the Preventive Provisions: PMLA 2002

By

 




Preventive provisions of the Act can be summarised as under:-

 

(i)                 Process and procedure regarding attachment, adjudication and confiscation (Section 5, Section 6, Section 7, Section 9, Section 10 and Section 11);

(ii)               The Prevention of Money-laundering (Manner of Receiving the Records Authenticated Outside India) Rules 2005, The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (Section 12, Section 12A, Section 12AA, Section 13, Section 14, Section 15);

(iii)             Provisions regarding Survey, Search and Seizure and Retention of Records – (Section 16, Section 17, Section 18, Section 20, Section 21, Section 22);

(iv)             Provisions regarding statutory obligation on part of other authorities to assist the Enforcement Directorate in its preventive/regulatory functions (Section 48, Section 49, Section 52, Section 53, Section 54, Section 63, Section 69, Section 72A); and

(v)               Provisions regarding International Cooperation and Exchange of Information in order to provide the database for monitoring cross border suspicious transactions– (Section 55, Section 56, Section 57, Section 58, Section 58B, Section 59, Section 60, Section 61).






Happy Reading


Those who read this, also read:


1. Obligations by RE under PMLA 2002


2. Offence of Money Laundering  : PMLA 2002

3. Objectives & Applicability: PMLA 2002

4. Reports by RE under PMLA 2002

5. Progress of Criminalisation: AML/CFT - India


Formerly Faculty for Finance & Associate Dean, IBS-Kochi MBA (Banking & Finance – CUSAT);CFA. Accredited Management Teacher from CME of AIMA, Delhi has been in Management Education from 1988. Exposure is in the field of Mutual Funds, Market Research, Project Report preparation & evaluation, Advertising & NGO Activities. This Chief Manager, UTI Asset Management Co Pvt. Ltd(1992-2003), Mumbai. Undergone training in Case Study method of teaching under Mr. Trevor Williams and Mr. Scott M Andrews conducted by the ECCH, UK . Published Books & Book Review, Series of academic articles and maintains a column on MFs under "Fund scan" in Business Manorama since January 2007,Contributes "Portfolio Doctor" column for 'Sampadyam' a wealth mgt publication in Malayalam from manorama group since February 2007, Listed her case studies at asiacase.com.Presented papers in national & international conferences on Mutual Funds. Faculty Member @ ASIET, Kalady from 2010 to June 2019. Dean @ SNGIST, N Paravur, Ernakulam from Sep 2019 -Jan 2021, I continue my efforts to spread the knowledge in area of Finance and contribute to Management Education

Comments

Post a Comment

Popular posts from this blog

National Risk Assessment (NRA): India

By
  India's National Risk Assessment (NRA) is  an ongoing exercise to identify sectors that are vulnerable to money laundering and terrorist financing (ML/TF) .  The NRA is based on recommendations from the Financial Action Task Force (FATF) and helps inform policy-making, resource allocation, and the implementation of effective AML/CFT measures. The NRA also ensures that national strategies address both domestic and international threats. The NRA provides a foundation for informed policy-making, resource allocation, and the implementation of effective AML/CFT measures . It ensures that national strategies are aligned with the specific risk landscape of the country and that they address both domestic and international threats. The subject matter of NRA  was discussed in the Anti-Money Laundering Steering Committee (AMLSC) set up with the approval of Finance Minister, and it was decided to conduct the NRA following the World Bank methodology. The Methodology requi...
Read more

Customer Due Diligence(CDD) : Individuals

By
Image
This post is based on RBI Master Circular dated Feb 25, 2016 updated on Jan 04, 2024  Part I - Customer Due Diligence (CDD) Procedure in case of Individuals For undertaking CDD, REs shall obtain the following from an individual while establishing an account-based relationship or while dealing with the individual who is a beneficial owner, authorised signatory or the power of attorney holder related to any legal entity: (a)     the Aadhaar number where,   (i) He is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or (ii) He decides to submit his Aadhaar number voluntarily to a bank or any RE notified under first proviso to sub-section (1) of section 11A of the PML Act; or (aa) the proof of possession of Aadhaar number where offline verification can be carried out; or (ab) the proof of possession of Aa...
Read more

Periodic Updation of Customer Risk Profile

By
1. Preparation of Customer Profile from KYC Data In the initial years of KYC, RBI has been following a handholding approach as can be seen from their circular dated July 2009 and that of Feb 25, 2016 as updated on Jan 04, 2024. RBI requires REs to conduct risk profiling and risk categorization and periodic updation.  Extracts from RBI MD dated July 01, 2009 under Customer Acceptance Policy a)ii) Parameters of risk perception are clearly defined in terms of the nature of business activity , location of customer  and his clients, mode of payments, volume of turnover, social and financial status etc. to enable categorisation of customers into low, medium and high risk (banks may choose any suitable nomenclature viz. level I, level II and level III). Customers requiring very high level of monitoring, e.g. Politically Exposed Persons (PEPs) may, if considered necessary, be categorised even higher; b). Banks should prepare a profile for each new customer based on risk categorisatio...
Read more