What changed
The threshold for reporting cross border wire transfers was set at Rs 5 lakh or equivalent in foreign currency, where either the origin or destination is India. The existing Transaction Based Reporting Format (TRF) used for CTRs, STRs, and NTRs must now be used for these wire transfers. Reports must be submitted electronically via the FINnet module by the 15th of the following month.
What it means for you
Banks and authorised persons must now systematically track and report all cross border wire transfers exceeding Rs 5 lakh. This increases compliance burden but strengthens anti-money laundering efforts. Non-compliance could attract penalties under FEMA and PMLA.
What you must do
- Update internal systems to capture cross border wire transfers of over Rs 5 lakh for reporting.
- Train staff on using the TRF format for these transactions on the FINnet gateway.
- Ensure monthly reports are submitted to FIU-IND by the 15th of the succeeding month.
- Verify the sample format available on the FIU-IND website for correct data submission.
Who it affects
All Authorised Persons (banks, financial institutions, intermediaries), Compliance and AML teams, FIU-IND reporting units
What is the threshold for reporting cross border wire transfers?
All cross border wire transfers of more than Rs 5 lakh or its equivalent in foreign currency, where the origin or destination is India, must be reported.
Which format should be used for reporting these wire transfers?
The existing Transaction Based Reporting Format (TRF) used for Cash Transaction Reports, Suspicious Transaction Reports, and Non-Profit Organization Transaction Reports should be used.
What is the deadline for submitting these reports?
Reports must be furnished to the Director, FIU-IND by the 15th of the succeeding month.