1. Anti-Money Laundering Guidelines

2. What is Money Laundering???
Section 3 of the Prevention of Money Laundering Act (PMLA), 2002 defines the offence of money laundering as
“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering”.
'Money Laundering' is the process by which illegal funds and assets are converted into legitimate funds and assets.

3. Regulatory Agencies Reserve Bank of India (RBI).
Insurance Regulatory and Development Authority (IRDA).
Security Exchange Board of India (SEBI).

4. The AML Transition in India for Banks
August 16, The Reserve Bank of India (RBI) released its first circular on “Guidelines on "Know Your Customer" norms and “Cash transactions”
January 17, – Prevention of Money Laundering Act (PMLA) published in the Gazette of India.
November 24, The first set of comprehensive guidelines on 'Know Your Customer' (KYC) Guidelines – Anti Money Laundering Standards issued.
July 1, 2005 – PMLA Rules came into effect.
November 27, 2006 – India becomes an 'observer' at the Financial Action Task Force (FATF)
November 12, 2009 – Amendment to PMLA Rules, 2005
June 25, 2010 – India becomes a member of the FATF

5. Purposes of AML Guidelines
To prevent the Banking system from criminal activities.
To not allow sophisticated methods of transfers to hide transfer of huge money.
To track those who misuse banks, financial institutions or intermediaries for illegal activities.
To prevent Drug trafficking, Terrorism and other organized and serious crimes.

6. Background of PMLA
The Prevention of Money Laundering Act, 2002 has come into effect from 1st July Necessary Notifications / Rules under the said Act have been published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, Government of India.
As per the provisions of the Act, every banking company, financial institution and intermediary shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules under the PMLA .

7. Scheduled Offences included in PMLA 2009
Kidnapping
Drug
Trafficking
Extortion
Bribery
& Corruption
Smuggling
(arms, people,
goods)‏
Criminal
Activities
Gambling,
Robbery,
Cheating
Prostitution
Part A of Schedule to PMLA covers more serious offences such as Offences under Unlawful Activities Act, Offences under Narcotic Drugs and Psychotropic substances Act etc. No minimum monetary limit is required is required to be charged for Schedule Part A Offence under PMLA. Other offences under Indian Penal Code, Wild Life Protection Act etc are listed under Schedule Part B. However Rs 30 Lakhs is the minimum threshold limit set for charging any person for Schedule Part B Offence under PMLA. PMLA Amendment Act 2009 has added Part C to the schedule which covers offences of Cross border implication without any threshold limit.
Counterfeiting
& Forgery
Terrorist Act

8. AML MEASURES INCLUDE:
Identification of customer according to KYC norms
Photocopies
Identity Proof documents
Address proof documents
Pan card
Recognition, handling and Disclosure of suspicious Transactions
Appointment of Money Laundering Reporting officer
Staff Training
Maintenance of Records

9. GUIDELINES General Customer Identification Procedure (cIp)
Customer Identification Requirements- Indicative Guidelines
Trust/nominee Accounts
Account s of companies and firms
Client accounts opened by professional intermediaries
Accounts of non-face-to-face customers

10. CLOSER OF ACCOUNTS
RISK MANAGEMENT
PRINCIPAL OFFICER
CUSTOMER EDUCATION/EMPIOYEE’S TRAINING.
INTRODUCTION OF NEW TECHNOLOGIES

11. THANK YOU