Page 145 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 2. The Branches will be applying the revised KYC/AML norms diligently to the existing
customers falling under high and medium risk categories.
3. This policy shall also apply to the branches, subsidiaries and majority owned joint ventures
located abroad, to the extent local laws permit. Based on this policy, each foreign office is
required to put in place an Anti-Money Laundering Policy (duly approved) which shall
also contain the KYC guidelines and suspicious activity reporting (SAR) Procedures as
may be required by the rules and regulations of the host country.

4. Since our Bank is dealing with a number of correspondent banks, an appropriate due
diligence procedure will be laid down keeping in view KYC standards existing in the
country where the bank is located and the track record of the bank in the fight against
money laundering and terrorist financing.

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Caution Concurrent/Internal Auditors shall specifically check and verify the application
of KYC/AML procedures at the branches and comment on the lapses observed will be put
up before the Audit Committee of the Board at quarterly intervals.

7.4 Principal Officer (Money Laundering Reporting Officer)

In light of the seriousness of the issue, individual banks are to designate a senior officer as
Principal Officer who shall be responsible for implementation and compliance of the policy. His
illustrative duties will be as follows:
(i) Monitoring and reporting of all transactions and sharing of information as required under
the law.
(ii) Maintaining close liaison with law enforcement agencies, banks and any other institution
which are involved in the fight against money laundering and combating.
(iii) Ensuring submission of periodical reports to the Top Management/Board/Audit
Committee of Board or any other authority, as may be required from time to time.

Record Keeping

In terms of the rules contained in the notification dated 01.07.2005 relating to Prevention of
Money Laundering Act issued by the Government of India, the following records shall be
maintained/retained for a period of 10 years from the date of cessation of the transaction
between the client and the branch:
Record (nature and value) of
(a) All cash transactions of the value of more than rupees ten lakh or its equivalent in foreign
currency;
(b) All series of cash transactions integrally connected to each other which have been valued
below rupees ten lakh 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 of bank notes have been
used as genuine and where any forgery of a valuable security has taken place;
(d) All suspicious transactions whether or not made in cash and by way as mentioned in the
rules.

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