Page 146 - DMGT303_BANKING_AND_INSURANCE

Unit 7: KYC Norms and Anti Money Laundering

Maintenance and Preservation of Record Notes

Banks should ensure that records pertaining to the identification of the customer and his address
e.g. copies of documents like passports, identity cards, driving licences, PAN card, Utility bills
obtained while opening of the account and during the course of business relationship are properly
preserved for at least 10 years after the business relationship is ended.

Reporting

Reporting to Financial Intelligence Unit India through Banks' Principal Officers:
(a) Cash Transaction Report (CTR) for each month by 15th of succeeding month,

(b) The suspicious Transaction Reports to be sent within 7 days of arriving at a conclusion
that such transaction is of suspicious nature.

Notes 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.

Self Assessment

State whether the following statements are true or false:
6. Monitoring and reporting of all transactions and sharing of information are not required
under the law in Anti money lending law.
7. Banks should ensure that records pertaining to the identification of the customer and his
address obtained while opening of the account and during the course of business
relationship are properly preserved for at least 10 years after the business relationship is
ended.

8. Branches would be maintaining a close watch on cash transactions (whether deposits or
withdrawals) of Rs. 25 lakh and above in all deposit and loan accounts and recording the
same separately in the prescribed register.
9. Monitoring of transactions will be conducted taking into consideration the risk profile of
the account.

10. Transactions that involve large amounts of cash inconsistent with the normal and expected
activity of the customer will not be subjected to detailed scrutiny.

7.5 Retail Lending

What is Retail Lending

An attractive Market Segment

Large number/Varied class of customers
Low business volume per customer
Individual and Small Units focused

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