What is enhanced due diligence (EDD)?
Enhanced due diligence (EDD) is a set of additional measures that financial institutions have to implement to check and monitor high-risk customers and unusual transactions for potential money laundering and terrorist financing (ML/TF) activities. Enhanced due diligence (EDD) is an in-depth KYC process that can help to identify high-risk customers including politically exposed persons (PEPs).…
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AML: Obligations under International Agreements
Money laundering is the process wherein criminals attempt to conceal their booty and make an attempt to cover them as a legitimate source of income. The bill on money laundering described it as an offence (i) when a crime has been committed. (ii)There are proceeds or gains from the crime. (iii) There is a transaction…
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What is Customer Due Diligence (CDD) under AML risk management in Banks?
In the realm of risk management and compliance, Customer Due Diligence (CDD) is a pivotal player. The Customer Due Diligence meaning, often abbreviated as CDD, is a process that financial institutions, businesses, and other organisations use to gather information about their customers and clients to identify and mitigate risks such as money laundering, financing terrorism,…
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Anti-Money Laundering (AML) regulations in India and Organisational Set-up
Anti-Money Laundering (AML) regulations in India are governed by the PMLA (Prevention of Money Laundering Act, 2002), which requires financial institutions and other entities to implement robust measures to detect and prevent money laundering activities. The PMLA lays down the broad framework for AML compliance requirements applicable to banking companies, financial institutions, and other intermediaries.…
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TYPES OF SERVICES OFFERED BY BANK S TO CUSTOMERS AND INVESTORS
Banks in India offer a wide range of banking services to their customers, such as savings and Current Accounts, loans (personal, business, and mortgages), debit cards, ATMs, credit cards, export credits, corporate and retail lending, investment services, Treasury operations, and electronic banking options like UPI, ECS, mobile banking, NEFT, and RTGS, SWIFT & ISO 20022 messages,…
Salient features of Different Deposit Products and Services available in banks
A deposit generally refers to money held in a customer’s bank account. Banks offer different types of deposit accounts to their customers with diverse features. Let us understand the types of accounts available to Bank customers Savings account Savings Bank (SB) accounts are opened mainly for saving purposes. Customers cannot open an SB account for…
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