Maintenance of Client Identity Records under PMLA: A Banking Compliance Perspective
Maintaining client identity records is a core compliance obligation for banks and financial institutions under the Prevention of Money Laundering Act (PMLA). This requirement is designed to promote transparency, accountability, and support for law enforcement in the fight against money laundering and financial crimes. What Records Must Be Maintained Banks and financial institutions must maintain…
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Verification of Client Identity under PMLA: A Banking Perspective
In today’s banking environment, verifying client identity under the Prevention of Money Laundering Act (PMLA) is more than a regulatory requirement—it is a cornerstone of financial integrity. By ensuring robust identity verification and record-keeping, banks not only comply with the law but also safeguard themselves against criminal misuse, build customer trust, and strengthen the resilience…
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Furnishing Information to FIU-IND under PMLA: Obligations for Reporting Entities
Under the Prevention of Money Laundering Act (PMLA), reporting entities are required to furnish transaction and client-related information to the Director, Financial Intelligence Unit – India (FIU-IND), through procedures defined in consultation with their regulators. Typically, this process is handled via the institution’s Principal Officer, who acts as the nodal point for compliance. Strict timelines…
Read article Record-Keeping procedure and Reporting under PMLA: Key Obligations for Reporting Entities
The Prevention of Money Laundering Act (PMLA) places significant compliance responsibilities on banks, financial institutions, and other reporting entities. These entities must maintain robust systems for Client Due Diligence (CDD) and record-keeping, while ensuring timely reporting to the Financial Intelligence Unit – India (FIU-IND). Below is a structured overview of the core requirements under PMLA.…
Read article Record Maintenance Requirements under PMLA: What Reporting Entities Must Know
The Prevention of Money Laundering Act (PMLA), 2002 imposes strict obligations on reporting entities such as banks, financial institutions, and intermediaries. These entities must maintain detailed records of transactions and client information to ensure transparency and to assist investigative agencies in detecting and preventing money laundering activities. At the core of these requirements is the…
Record-Keeping Obligations for Reporting Entities under PMLA
The Prevention of Money Laundering Act (PMLA), 2002 places strict obligations on banks, financial institutions, and other reporting entities to maintain transaction records and client information. These requirements are critical for ensuring transparency, detecting suspicious activities, and enabling investigators to trace the origins of funds when necessary. Under PMLA, records must be kept in such…
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