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New Delhi, the 24th
May, 2007
G.S.R. 389(E).- In exercise of the powers conferred by
sub-section (1) read with clause (h), clause (i), clause (j) and
clause (k) of sub-section (2) of Section 73 of the Prevention of
Money-laundering Act, 2002 (15 of 2003), the Central Government,
in consultation with the Reserve Bank of India, hereby makes the
following rules further to amend the Prevention of
Money-laundering (Maintenance of Records of the Nature and Value
of Transactions, the Procedure and Manner of Maintaining and Time
for Furnishing Information and Verification and Maintenance of
Records of the Identity of the Clients of the Banking Companies,
Financial Institutions and Intermediaries) Rules, 2005, namely :-
1. (1) These rules may be called the Prevention
of Money-laundering (Maintenance of Records of the Nature and Value
of Transactions, the Procedure and Manner of Maintaining and Time
for Furnishing Information and Verification and Maintenance of
Records of the Identity of the Clients of the Banking Companies,
Financial Institutions and Intermediaries) Amendment Rules, 2007.
(2) They shall come into force on the date
of their publication in the Official Gazette.
2. In the Prevention of Money-laundering (Maintenance
of Records of the Nature and Value of Transactions, the Procedure
and Manner of Maintaining and Time for Furnishing Information and
Verification and Maintenance of Records of the Identity of the
Clients of the Banking Companies, Financial Institutions and
Intermediaries) Rules, 2005, -
(i) in rule 2, in sub-rule (1), in clause
(g), for sub-clause (c), the following sub-clauses shall
be substituted, namely:-
“(c) appears to have no economic rationale or bona
fide purpose; or
(d) gives rise to a reasonable ground of
suspicion that it may involve financing of the activities
relating to terrorism;”;
(ii) in rule 3, in sub-rule (1), for
clause (C), the following clause shall be substituted, namely, -
“(C) 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;”;
(iii) for rule 8, the following rule shall be
substituted, namely :-
“8. Furnishing of information to the Director.
–(1) The Principal Officer of a banking company, a financial
institution and an intermediary, as the case may be, shall
furnish the information in respect of transactions referred
to in clauses (A) and (B) of sub-rule (1) of rule 3 every
month to the Director by the 15th day of the succeeding
month.
(2) The Principal Officer of a banking company, a
financial institution and an intermediary, as the case may
be, shall furnish the information promptly in writing or by
fax or by electronic mail to the Director in respect of
transactions referred to in clause (C) of sub-rule (1) of
rule 3 not later than seven working days from the date of
occurrence of such transaction.
(3) The Principal Officer of a banking company, a
financial institution and an intermediary, as the case may
be, shall furnish the information promptly in writing or by
fax or by electronic mail to the Director in respect of
transactions referred to in clause (D) of sub-rule (1) of
rule 3 not later than seven working days on being satisfied
that the transaction is suspicious.”;
(iv) in rule 9,-
(a) in sub-rules (3), (4) and (5), for the words
“three certified copies”, the words “one certified copy”
shall be substituted;
(b) in sub-rule (6), for the words “three copies”,
the words “one certified copy” shall be substituted.
Notification No. 4/2007-E.S./F.No.
6/13/2005-E.S.]
MUKUL SINGHAL, Jt. Secy.
Note : The principal rules were published in Part-II, Section
3, sub-section (i) of the Gazette of India, Extraordinary vide
notification Number G.S.R.444(E), dated the 1st July, 2005 and
subsequently amended vide notification number G.S.R.717(E), dated
the 13th December, 2005. |
