3.
Maintenance of records of transactions
Regional
Rural Banks should introduce a system of maintaining proper record of transactions
prescribed under Rule 3, as mentioned below:
i. all cash transactions of the value of more than rupees ten lakh
or its equivalent in foreign currency;
ii. 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 and
the aggregate value of such transactions exceeds rupees ten lakh;
iii. all cash transactions where forged or counterfeit currency
notes or bank notes have been used as genuine and where any forgery of a valuable
security has taken place;
iv. all suspicious transactions
whether or not made in cash and by way of as mentioned in the Rules.
4. Information to be
preserved
Regional
Rural Banks are required to maintain the following information in respect of transactions
referred to in Rule 3:
i. the nature
of the transactions;
ii. the amount
of the transaction and the currency in which it was denominated;
iii.
the date on which the transaction was conducted; and
iv.
the parties to the transaction.
5.
Maintenance and Preservation of records
Regional
Rural Banks should take appropriate steps to evolve a system for proper maintenance
and preservation of account information in a manner that allows data to be retrieved
easily and quickly whenever required or when requested by the competent authorities.
Further, banks should maintain for at least ten years from the date of cessation
of transaction between the bank and the client, all necessary records of transactions,
both domestic or international, which will permit reconstruction of individual
transactions (including the amounts and types of currency involved if any) so
as to provide, if necessary, evidence for prosecution of persons involved in criminal
activity.
Regional
Rural 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 licenses, PAN, utility bills etc.) obtained while opening the account
and during the course of business relationship, are properly preserved for at
least ten years after the business relationship is ended. The identification records
and transaction data should be made available to the competent authorities upon
request.
6.
Reporting to Financial Intelligence Unit-India
It
is advised that in terms of the PMLA rules, RRBs are required to report information
relating to cash and suspicious transactions to the Director, Financial Intelligence
Unit-India (FIU-IND) at the following address:
Director, FIU-IND,
Financial
Intelligence Unit-India,
6th Floor, Hotel
Samrat,
Chanakyapuri,
New
Delhi-110021
I)
Regional Rural Banks should carefully go through all the reporting formats. There
are altogether five reporting formats viz. i) Manual reporting of cash transactions
ii) Manual reporting of suspicious transactions iii) Consolidated reporting of
cash transactions by Principal Officer of the bank iv) Electronic data structure
for cash transaction reporting and v) Electronic data structure for suspicious
transaction reporting which are enclosed to this circular. The reporting formats
contain detailed guidelines on the compilation and manner/procedure of submission
of the reports to FIU-IND. It would be necessary for RRBs to initiate urgent steps
to ensure electronic filing of cash transaction report (CTR) as early as possible.
The related hardware and technical requirement for preparing reports in an electronic
format, the related data files and data structures thereof are furnished in the
instructions part of the concerned formats. However, RRBs which are not in a position
to immediately file electronic reports may file manual reports to FIU-IND. While
detailed instructions for filing all types of reports are given in the instructions
part of the related formats, RRBs should scrupulously adhere to the following:
a. The
cash transaction report (CTR) for each month should be submitted to FIU-IND
by 15th of the succeeding month. While filing CTR, individual transactions
below rupees fifty thousand may not be included;
b. The
Suspicious Transaction Report (STR) should be furnished within 7 days of arriving
at a conclusion that any transaction, whether cash or non-cash, or a series of
transactions integrally connected are of suspicious nature. The Principal Officer
should record his reasons for treating any transaction or a series of transactions
as suspicious. It should be ensured that there is no undue delay in arriving at
such a conclusion once a suspicious transaction report is received from a branch
or any other office. Such report should be made available to the competent authorities
on request;
c.
The Principal Officer will be responsible for timely submission of CTR and STR
to FIU-IND;
d.
Utmost confidentiality should be maintained in filing of CTR and STR to FIU-IND.
The reports may be transmitted by speed/registered post, fax, email at the notified
address;
e. It should be ensured
that the reports for all the branches are filed in one mode i.e. electronic or
manual;
f. A summary of cash transaction report for the RRB as a whole may be compiled
by the Principal Officer of the bank in physical form as per the format specified.
The summary should be signed by the Principal Officer and submitted both for manual
and electronic reporting.
7.
Regional Rural Banks may not put any restrictions on operations in the accounts
where an STR has been made. However, it should be ensured that there is no
tipping off to the customer at any level.
8.
These instructions are issued under Section 35A of the Banking Regulation
Act, 1949 and Rule 7 of Prevention of Money-laundering (Maintenance of Records
of the Nature and Value of Transactions, the Procedure and Manner of Maintaining
and Time for Furnishing Information and Verification and Maintenance of Records
of the Identity of the Clients of the Banking Companies, Financial Institutions
and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance shall
attract penalties.
9.
A copy of the Prevention
of Money-laundering (Maintenance of Records of the Nature and Value of Transactions,
the Procedure and Manner of Maintaining and Time for Furnishing Information and
Verification and Maintenance of Records of the Identity of the Clients of the
Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 is enclosed
for ready reference.
Yours faithfully,
(G. Srinivasan)
Chief General Manager