The government has made it mandatory for banks and financial institutions to check the original identification documents of individuals dealing in cash above the Rs 50,000 threshold as part of the stepped up war against black money.
The Department of Revenue under the administrative control of the Finance Ministry has issued a notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules.
The new lead now requires the detailing element to think about the duplicate of the formally substantial distinguishing proof archive created by the customer with the first and record it on the duplicate. The Prevention of Money Laundering Act (PMLA) shapes some portion of the lawful system set up by the administration to battle illegal tax avoidance and age of dark cash.
According to Rule 9, every reporting entity shall at the time of commencement of an accountbased relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship.
Intermediaries like stock brokers, chit fund companies, cooperative banks, housing finance institutions and non-banking finance companies are also classified as reporting entities. The biometric identification number Aadhaar and other official documents are required to be obtained by the reporting entities from anyone opening a bank account as well as for any financial transaction of Rs 50,000 and above.
This is also required for all cash dealings of more than Rs 10 lakh or its equivalent in foreign currency, cash transactions where forged or counterfeit currency notes have been used and all suspicious transactions.
All cross-fringe wire exchanges of more than Rs 5 lakh in remote money and buy and offer of unflinching property esteemed at Rs 50 lakh or all the more likewise fall under this classification, as indicated by the detailing rules.
The warning states in the event that the authoritatively legitimate archive outfitted does not contain refreshed address, a service charge like power, phone, post-paid cell phone, channeled gas or water charge which isn’t over two months old can be considered as a proof of address.
Additionally, property or city charge receipt, annuity or family benefits installment orders issued to resigned representatives by Government offices, or letter of apportioning of settlement from business can be considered for a similar reason.
