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Checklist for money laundering act

Niki Shingade (Company Secretary) (83 Points)

09 February 2010

Dear All,

Can any one please provide me with a check list for Prevention of money laundering act

Thanks in advance

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3 Replies

VIKAS AGARWAL (MANAGER) (44 Points)
Replied 18 February 2010

Dear All,

Can any one please provide me with a check list for Prevention of money laundering act

Thanks in advance

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 18 February 2010

I think it may help you......

		CHECKLIST OF TO DO ITEMS

1	Maintenance of Records of Transactions
A	All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign currency.
B	All series of cash transactions integrally connected to each other which have been vaued below Rs 10 Lacs or its equivalent in foreign currency where such series of transactions have taken place within a month.
C	All Cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine and where any frogery of a valuable security has taken place.
D	All suspicious transactions whether or not made in cash.
2	Records to contain the following information

	a)	the nature of the transection
	b)	the amount of the transaction and the currency in which it was denominated
	c)	date of transaction
	d)	parties to transaction

3	Procedure and manner of maintaining the information

	1	In hard and soft copies in accordance with the procedures and manners as may be specified by RBI and SEBI from time to time
	2	To evolve an internal mechanism for maintaining such information in such form and at such intervals as may be specified by RBI and SEBI from time to time

4	Retention of Records

		To be maintained for a period of 10 years from the cessation of transaction

5	Procedure and manner of furnishing information

	1	To communicate the name, designation and address of the principal officer to the Director, who shall furnish the information reffered in point 1 above to the Director
	2	The information to be furnished every monthto the Director by the 7th of the succeeding month
	3	Information inrespect of transactions as referred in C and D of Point 1 above to be submitted not later than 3 working days from the occurance of the transaction





6	Verificaions of the records of the identity of the clients

	At the time executing any transaction verify and maintain the records of identity and current address of the client, nature of business and financial status

	Individual

	1	Certified copy of the proof of residence
	2	Photograph
	3	Such other documents with respect ot nature of business financal status as may be desired

	Company

	1	Certificate of incorporation
	2	MOA and AOA
	3	Resolution from the BOD and POA granted to its Manager, officers or employees totransact on its behalf
	4	an officially valid document in respect of managers, officers or employees holding an attorney to transact on its behalf

	Partnership Firm

	1	Registration certificate
	2	Partnership deed
	3	an officially yield document in respect of the person holding an attorney to transact on its behalf

	Trust

	1	Registration Certificate
	2	Trust Deed
	3	an officially yield document in respect of the person holding an attorney to transact on its behalf

	Unincorporated association or a body of individuals

	1	resolution of the managing body of such association or body of individuals
	2	power of attorney granted to him to transact on its behalf
	3	an officially yield document in respect of the person holding an attorney to transact on its behalf
	4	such information as may be required by the banking company or the financial institution or the intermediary to collectivily establish the legal existance of such an association or body of individuals.

7		Formulate and implement a client identification programme

8		Maintaining record of the identity of the clients for a period of ten years