PREVENTION OF MONEY-LAUNDERING (MAINTENANCE OF RECORDS) RULES, 2005
(1) These rules may be called the 30[Prevention of Money-laundering (Maintenance of Records) Rules], 2005.
(2) They shall come into force on the date of their publication1 in the Official Gazette.
(1) in these rules, unless the context otherwise requires,--
(a) "Act" means the Prevention of Money-laundering Act, 2002 (15 of 2003);
(b) "client" means a person that engages in a financial transaction or activity with a banking company, or financial institution or intermediary and includes a person on whose behalf the person that engages in the transaction or activity, is acting;
28[(bb) "Designated Officer" means any officer or a class of officers authorized by a banking company, either by name or by designation, for the purpose of opening small accounts.]
(c) "Director" means the Director appointed under sub-section (1) of section 49 of the Act for the purposes of sections 12 and 13 of the Act;
10[(c
(1) Every banking company or financial institution or intermediary, as the case may be, 18[shall maintain the record of all transactions including the record of], -
(A) all cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;
(B) 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;
10[(BA) all transactions involving receipts by non-profit organisations of value more than rupees ten lakh, or its equivalent in foreign currency;]
7[(C) all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or wh
The records referred to in rule 3 19[shall contain all necessary information specified by the Regulator to permit reconstruction of individual transaction, including] the following information:-
(a) the nature of the transactions;
(b) the amount of the transaction and the currency in which it was denominated;
(c) the date on which the transaction was conducted; and
(d) the parties to the transaction.
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19. Substituted by 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
(1) Every banking company, financial institution and intermediary, as the case may be shall maintain information in respect of transactions with its client referred to in rule 3 20[***] in accordance with the procedure and manner as may be specified by 12[its Regulator] from time to time.
(2) Every banking company, financial institution and intermediary, shall evolve an internal mechanism for maintaining such information in such form and at such intervals as may be specified by the Reserve Bank of India, or 2[the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority,] as the case may be, from time to time.
(3) It shall be the duty of every banking company, financial institution and intermediary, as the case may be, to observe the procedure and the manner of maintaining information as specified by th
The records referred to in rule 3 shall be maintained for a period of ten years from the date of transactions between the client and the banking company, financial institution or intermediary, as the case may be.]
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13. Substituted by 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 he Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2009 vide Notification No. GSR816(E) Date 12.11.2009 for the following : -
"6. Retention of records
The records referred to in rule 3 shall be maintained for a period of ten year
(1) Every banking company, financial institution and intermediary, as the case may be, shall communicate the name, designation and address of the Principal Officer to the Director.
(2) The Principal Officer shall furnish the information 21[referred to in clauses (A), (B), (BA), (C) and (D) of sub-rule (1) of rule 3] to the Director 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 be retained by the Principal Officer for the purposes of official record,
(3) Every banking company, financial institution and intermediary may evolve an internal mechanism for furnishing information 21[referred to in clauses (A), (B), (BA), (C) and (D) of sub-rule (1) of rule 3] in such form and at such intervals as may be directed by 10[its Regulator]
(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 15[clauses (A), (B) and (BA)] 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
16[(1) Every banking company, financial institution and intermediary, as the case may be, shall,--
(a) at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship, and
(b) in all other cases, verify identity while carrying out:
(i) transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or
(ii) any international money transfer operations.
25[(1A) Every banking company, financial institution and intermediary, as the case may be, shall identify the beneficial owner and
(1) Every banking company or financial institution or intermediary, as the case may be, shall maintain the records of the identity of its clients.
(2) The records of the identity of clients shall be maintained in hard and soft copies in a manner as may be specified by 14[its regulator], from time to time].
(3) The records of the identity of clients shall be maintained for a period of ten years from the date of cessation of the transactions between the client and the banking company or financial institution or intermediary, as the case may be.
24[Explanation. - For the purposes of this rule, -
(i) the expression 'records of the identity of clients' shall include records of the identification data, account files and business correspondence.
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If any question arises relating to the interpretation of these rules, the matter shall be referred to the Central Government and the decision of the Central Government shall be final.
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