What changed
RBI issued guidelines under KYC/AML/CFT framework requiring all wire transfers to include accurate originator information. Cross-border transfers must have originator name, address, and account number or unique reference. Domestic transfers of ₹50,000 and above need complete originator details. Banks must watch for customers intentionally splitting transfers below ₹50,000 to evade monitoring.
What it means for you
Urban co-operative banks must update their wire transfer systems to capture and transmit originator information for every transaction. This increases compliance burden but strengthens anti-money laundering and counter-terrorism financing efforts. Banks need to train staff to detect structuring patterns and ensure beneficiary banks receive required data for suspicious transaction reporting.
What you must do
- Update wire transfer systems to capture originator name, address, and account number for all cross-border transfers and domestic transfers of ₹50,000 or more.
- Implement monitoring mechanisms to detect customers intentionally structuring wire transfers below ₹50,000 to avoid reporting.
- Ensure bundled batch files for cross-border transfers include at least the originator's account number or unique reference number.
- Train staff on KYC/AML requirements for wire transfers and establish procedures to provide originator information to beneficiary banks and FIU-IND.
Who it affects
All Primary (Urban) Co-operative Banks, Bank compliance and AML teams, Wire transfer operations staff, Customers initiating wire transfers
What information must accompany a cross-border wire transfer?
All cross-border wire transfers must include the originator's name, address, and account number. 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 ₹50,000 and above must include complete originator information such as name, address, and account number, unless the beneficiary bank can access this data by other means.
What should a bank do if a customer structures wire transfers below ₹50,000?
If the bank suspects intentional structuring to avoid reporting or monitoring, it must insist on complete customer identification before processing the transfer.