Regulated Entities (REs) should undertake buyer due diligence (CDD) as per the method for his or her prospects. (Representative picture)
The Reserve Bank mentioned it has additionally up to date sure directions in accordance with the FATF suggestions.
The Reserve Bank on Tuesday tightened the client due diligence (CDD) norms by asking banks and controlled entities to undertake a danger-primarily based method for periodic updation of KYC. After a evaluate, the central financial institution has made amendments to the Master Direction (MD) on Know Your Customer (KYC).
Regulated Entities (REs) should undertake buyer due diligence (CDD) as per the method for his or her prospects. The amendments observe the most recent authorities directions associated to the Prevention of Money-Laundering Rules, Unlawful Activities (Prevention) Act (UAPA), and Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act.
The Reserve Bank mentioned it has additionally up to date sure directions in accordance with the FATF suggestions. The newest Master Directions mentioned the chance-primarily based method for periodic updation of KYC has been amended to be learn as: “REs shall adopt a risk-based approach for periodic updation of KYC ensuring that the information or data collected under CDD is kept up-to-date and relevant, particularly where there is high-risk”.
It additional mentioned the directions on opening accounts and monitoring of transactions ought to be strictly adhered to, as a way to minimise the operations of “Money Mules”, that are used to launder the proceeds of fraud schemes (like, phishing and identification theft) by criminals, who acquire unlawful entry to deposit accounts.
“Banks shall undertake diligence measures and meticulous monitoring to identify accounts, which are operated as Money Mules and take appropriate action, including reporting of suspicious transactions to FIU-IND,” in accordance with the amended Master Direction.
It additionally widens the definition of buyer due diligence (CDD). The Reserve Bank mentioned the amended provisions within the Master Direction will come into drive with rapid impact.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)
