Levy of charges on forex prepaid cards/store value cards/travel cards, etc.
Certain instruments like International Debit Cards/Store Value Cards/Charge Cards/Smart Cards or any other instrument that can be used in India to create a financial liability, as ‘currency’. The banking regulator Reserve Bank of India observed that a few Authorised Persons are levying certain fees/charges, which are payable in India on such instruments, in foreign currency.…
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V-CIP process for online KYC of individuals, proprietor and companies
Video-based Customer Identification Process (V-CIP) is an alternate method of customer identification with facial recognition and customer due diligence by an authorised official of the Regulated Entities (REs) like banks and other financial institutions. In the V-CIP process your KYC documents and signature are verified on a real-time basis through seamless, secure, live, informed-consent-based audio-visual…
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Amendment to prevention of money laundering act and impact
In the month of March 2023, the Finance Ministry amended the Prevention of Money Laundering Act (PMLA) and rules in line with the recommendations of the FATFwhich is the global money laundering and terrorist financing watchdog. In India, the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, as…
Read article Amendment to KYC: Measures while dealing with the Wire Transfer
Pursuant to a recent amendment to KYC Master Direction, RBI on Thursday (May 4) advised Regulated Entities (RE) like banks and financial institutions to undertake certain measures while dealing with the Wire Transfer in terms of said amendment. Information requirements for cross-border, as well as domestic wire transfers in terms of the latest guidelines, are…
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Latest KYC amendment related to Customer Due Diligence (CDD)
Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing. KYC involves several steps to: establish customer identity; understand the nature of customers’ activities and qualify that the source of funds is legitimate; and. KYC involves several steps to (i) establish customer identity (ii)understand the nature…
Many changes were made to KYC in the latest MD amendment
Keeping in view the anonymous and instantaneous nature of VDA transfers and the potential of services offered by SPs being misused by state and non-state actors for money laundering, terror financing, and proliferation financing, all SPsmust have a robust mechanism in place for complying with KYC requirements before on-boarding of clients/ wallets as well as…
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