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| Is every banking company, financial institution and intermediary obliged to furnish information under PMLA, 2002 to FIU-IND? |
Yes. Section 12 of the Prevention of Money Laundering Act, 2002, casts an obligation on every banking company, financial institution and intermediary to furnish information on all transactions referred to in Rule 3 of the Rules notified by Notification No.9/2005 to the Director within the time prescribed in Rule 8 contained in Notification Nos.9/2005 dated 1-7-2005 and 15/2005 dated 13-12-2005.
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| Which notification lays down procedures and manner for furnishing of information? |
Rules 7 and 8 of the Rules notified
by Notification No. 9/2005 dated 1st July 2005 read with Notification No.15/2005 dated 13th
December 2005 and Notification No. 4/2007 dated 24th May 2007 specify the procedure and manner for furnishing information.
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| What type of information is required to be furnished under PMLA 2002? |
Every banking company, financial institution and intermediary is required to furnish information about -
- all cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;
- all series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month;
- all cash transactions where forged
or counterfeit currency notes or bank notes have been
used as genuine or where any forgery of a valuable
security or a document has taken place facilitating the
transactions;
- all suspicious transactions whether or not made in cash
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| What constitutes a s uspicious transaction under PMLA 2002? |
Suspicions transaction means a transaction whether or not made in cash which, to a person acting in good faith -
- gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime; or
- appears to be made in circumstances of unusual or unjustified complexity; or
- appears to have no economic
rationale or bonafide purpose; or
- gives rise to a reasonable
ground of suspicion that it may involve financing
of the activities relating to terrorism
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| Is there any standard format required to be used by banking companies, financial institutions & intermediaries for furnishing information to the Director, FIU-IND? |
Yes. Every banking company, financial institution and intermediary is necessarily required to furnish information to Director, FIU-IND in a standard format prescribed for the purpose by the Reserve Bank of India , Securities and Exchange Board of India or the Insurance Regulatory & Development Authority, as the case may be.
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| Who has the responsibility to furnish information to Director, FIU-IND? |
Every banking company, financial institution and intermediary is required by Rule 7 of the Rules notified by Notification No.9/2005 dated 1/7/2005 to designate an officer as Principal Officer for the purpose of PMLA, 2002, who will have the responsibility to furnish the information referred to in Rule 3 to the Director, FIU-IND on the basis of information available with the banking company, financial institution and intermediary, as the case may be. A copy of such information shall also be retained by the Principal Officer for the purpose of official record.
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| Who is a Principal Officer ? |
Principal Officer is an officer designated by a banking company, financial institution and intermediary for the purpose of Section 12 of PMLA, 2002. Rule 7 of the Rules notified by Notification No. 9/2005 requires e very banking company, financial institution and intermediary to communicate the name, designation and address of the Principal Officer to the Director.
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| Are there any time limits prescribed for furnishing information to Director, FIU-IND? |
| Yes. Rule 8 of the Rules notified by Notification No.9/2005 (as amended by Notification No.15/2005
and 4/2007) prescribes time limit for furnishing information to
the Director, FIU-IND The time limit for furnishing
information about cash transactions and integrally connected
cash transactions to Director, FIU-IND is 15th day of the succeeding month:
All cash transactions where forged or counterfeit currency notes
or bank notes have been used as genuine or where any forgery of
a valuable security or a document has taken place facilitating
the transactions should be furnished to the Director, FIU-IND
not later than seven working days from the date of occurrence of
such transactions.All suspicious transactions have to be
furnished to the Director, FIU-IND not later than seven working
days on being satisfied that the transaction is suspicious
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| Can fine imposed under section 13(2) be recovered in the event of default?. |
Yes. Section 69 of the Prevention of Money Laundering Act, 2002, provides that where any fine imposed on any person is not paid within six months from the day of imposition of fine, the Director, FIU-IND or any person authorized by him may proceed to recover the amount from the said person in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961) for the recovery of arrears.
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