What changed
RBI has mandated that all cross-border wire transfers must include accurate originator information (name and address, and account number if an account exists, or a unique reference number if no account). For domestic wire transfers of Rs. 50,000 and above, complete originator information is required unless available to the beneficiary bank by other means. Banks must also watch for customers intentionally structuring transfers below Rs. 50,000 to avoid reporting, and if non-cooperation occurs, file a Suspicious Transaction Report (STR) to FIU-IND.
What it means for you
Banks must update their wire transfer systems to capture and transmit full originator details for cross-border transfers and domestic transfers above Rs. 50,000. This enhances traceability for law enforcement and FIU-IND to detect money laundering and terrorist financing. Banks need to train staff to identify structuring attempts and insist on complete KYC for such cases.
What you must do
- Ensure all cross-border wire transfers include originator name and address, and account number if an account exists, or a unique reference number if no account.
- For domestic wire transfers of Rs. 50,000 and above, include complete originator information unless full information can be made available to the beneficiary bank by other means.
- Monitor for customers structuring wire transfers below Rs. 50,000 to avoid reporting; insist on complete customer identification before processing. If the customer does not cooperate, file a Suspicious Transaction Report (STR) to FIU-IND.
- Update internal AML/CFT policies and systems to comply with these originator information requirements.
- Train staff on detecting and handling suspicious structuring of wire transfers and on STR filing procedures.
Who it affects
All scheduled commercial banks (excluding RRBs), Bank compliance and AML teams, Bank operations handling wire transfers, Customers initiating wire transfers
What information must accompany a cross-border wire transfer?
All cross-border wire transfers must include the originator's name and address. If an account exists, the account number must be included; if no account exists, a unique reference number as prevalent in the country must be provided.
What is the threshold for domestic wire transfers requiring full originator information?
Domestic wire transfers of Rs. 50,000 and above must include complete originator information (name, address, account number) unless the beneficiary bank can access it by other means.
What should a bank do if a customer splits a large transfer into multiple transfers below Rs. 50,000?
If the bank suspects intentional structuring to avoid reporting, it must insist on complete customer identification before processing the transfer. If the customer does not cooperate, the bank should make efforts to establish identity and file a Suspicious Transaction Report (STR) to FIU-IND.