What changed
The RBI mandated that all cross border wire transfers exceeding Rs. 5 lakh (or equivalent in foreign currency) with origin or destination in India must be reported to FIU-IND. The reporting must use the existing Transaction Based Reporting Format (TRF) on the FINnet gateway, replacing any previous ad-hoc methods.
What it means for you
Banks and financial institutions must now systematically track and report high-value cross border wire transfers to combat money laundering. This adds to existing reporting obligations for CTRs, STRs, and NTRs, requiring tighter coordination between compliance and operations teams to meet the monthly deadline.
What you must do
- Ensure your Principal Officer acknowledges receipt of this circular.
- Configure your systems to capture all cross border wire transfers over Rs. 5 lakh with Indian origin or destination.
- Submit the transaction data in the TRF format via the FINnet gateway by the 15th of each succeeding month.
- Train relevant staff on the updated reporting requirements and deadlines.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Principal Officers of reporting entities
What is the threshold for reporting cross border wire transfers?
The threshold is Rs. 5 lakh or its equivalent in foreign currency, where either the origin or destination of the funds is in India.
By when must the report be submitted to FIU-IND?
The report must be furnished to the Director, FIU-IND by the 15th of the month succeeding the transaction month.
Which format should be used for reporting these wire transfers?
The existing Transaction Based Reporting Format (TRF), already used for CTRs, STRs, and NTRs, should be used for cross border wire transfers.