What changed
The Government of India amended the Prevention of Money-laundering Rules, 2005 via Notification No. 10/2010-E.S/F.No.6/8/2009-E.S. dated June 16, 2010. RBI forwarded this amendment to all Regional Rural Banks for compliance, enclosing a copy of the notification.
What it means for you
RRBs must update their anti-money laundering policies to align with the amended rules, covering maintenance of records of transactions, client identity verification, and timely furnishing of information. Non-compliance could attract regulatory action.
What you must do
- Review the enclosed Government notification and update your AML policy accordingly.
- Ensure your systems capture and retain transaction records as per the amended rules.
- Train staff on revised client verification and record-keeping procedures.
- Submit required information to the Financial Intelligence Unit within prescribed timelines.
Who it affects
All Regional Rural Banks (RRBs), Compliance and AML teams at RRBs, Branch managers handling customer onboarding and transactions
What is the effective date of the amended PMLA rules?
The Government notification is dated June 16, 2010, and the RBI circular is dated July 23, 2010. The source does not specify an effective date beyond the notification date.
Do these rules apply only to RRBs?
The RBI circular specifically addresses RRBs, but the amendment itself applies to all banking companies, financial institutions, and intermediaries as per its title.