FINANCEOUTLOOKINDIANOVEMBER, 20238In a recent notification, the Centre announced a change to the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, to tighten record keeping in cases of foreign transactions exceeding Rs 50,000 in order to avoid terror financing. According to the new standards, each overseas transaction worth more than Rs 50,000 will be scrutinized more closely. Every foreign transaction exceeding Rs 50,000 will now require a reporting entity to identify clients. It will validate their identity as well as determine the objective of the firm if it is not properly defined.The revised rule also required reporting institutions that are part of a group to have proper protections in place to protect the confidentiality and use of information received, including precautions
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