What changed
RBI issued this circular in 2007 to align co-operative banks with KYC/AML/CFT standards for wire transfers. It specifies minimum originator information requirements for cross-border and domestic wire transfers, including a threshold of ₹50,000 for domestic transactions. The circular also warns against intentional structuring of transfers below the threshold.
What it means for you
Banks must now systematically capture and transmit originator details for all wire transfers, especially cross-border ones. Domestic transfers of ₹50,000 or more require full originator information, and any attempt to split transfers to stay below this limit must be met with enhanced due diligence. This strengthens the ability of law enforcement and FIU-IND to trace funds and detect suspicious activity.
What you must do
- Update wire transfer systems to automatically capture and transmit originator name, address, and account number for all cross-border transfers.
- Implement monitoring for domestic wire transfers of ₹50,000 and above to ensure complete originator information is included.
- Train staff to identify and flag customers who structure wire transfers below ₹50,000 to avoid reporting, and insist on full KYC before processing such transfers.
- Ensure batch file transfers from a single originator include at least the originator's account number or unique reference number.
Who it affects
All State and District Central Co-operative Banks, Compliance and AML teams, Operations and wire transfer processing staff, Customer relationship managers handling high-value or frequent transfers
What information is required for cross-border wire transfers?
All cross-border wire transfers must include the originator's name, address, and account number. If no account exists, a unique reference number must be provided.
What is the threshold for domestic wire transfer reporting?
Domestic wire transfers of ₹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 we do if a customer splits a large transfer into multiple smaller ones?
If you suspect intentional structuring to stay below ₹50,000, you must insist on complete customer identification before processing the transfers.