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AML provisions for RemittancesDomestic/International

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Objective

Antimoney laundeing is applicable to domestic and international money remittance also

Know Your Customers (KYC)Customer Due Diligence (CDD)

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Risk categories :

Risk Category All domestic remittances under MO,iMO,eMO,VPMO,IPO and FPO which are up

to value

Low Risk (a) of Rs.5000/-

Low Risk (b) above Rs.5000/- and up to Rs.50,000

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Risk Category All international remittances under money transfer services like Western Union, IFS, Money Order Videsh etc. and any domestic remittance value of which

Medium Risk Up to Rs.10 lakh.

High Risk Above Rs.10 lakh.

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Low Risk (a) : Norms

Low Risk (a) Category All domestic remittances under MO,iMO,eMO,VPMO,IPO and FPO which are up to value of

Rs.5000/-

Norms Proof

Photograph

No KYC required.Identity proof

Address proof

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Low Risk (b) : Norms

Low Risk (b) Category all domestic remittances under MO,iMO,eMO,VPMO,IPO and FPO which are up to value above

Rs.5000/- and up to Rs.50,000

Norms Proof

Identity proof Copy of any one of the following ID Proof for the remitter as well as the payee :(i)PAN Card (ii) Electoral Photo Identity card (iii) Ration Card (iv) Passport, Driving License (v) Any Photo Identity card issued by Central/State Government or PSU.

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Medium Risk : Norms

Medium Risk Category All international remittances under money transfer services like Western Union, IFS, Money Order Videsh etc. and any domestic remittance value of which is above Rs.50,000/- and up to

Rs.10 lakh.

Norms ProofIdentity proof Copy of any one of the following ID Proof for the remitter as well as

the payee :(i)PAN Card (ii) Electoral Photo Identity card (iii) Ration Card (iv) Passport, Driving License (v) Any Photo Identity card issued by Central/State Government or PSU.

Address proof Copy of any one of the following address proof for the remitter as well as the payee :Electoral Photo identity card, Bank/POSB PB, Current electricity bill/telephone bill.

Additional requirement

Copy of source of funds and physical verification of address before making transaction.

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High Risk : Norms- Four risk categories :

High Risk Category All international remittances under money transfer services like Western Union, IFS, Money Order Videsh etc. and any domestic remittance value of

which is above Rs.50,000/- and up to Rs.10 lakh

Norms Proof

Identity proof Copy of any one of the following ID Proof for the remitter as well as the payee :PAN Card (ii) Electoral Photo Identity card (iii) Ration Card (iv) Passport, Driving License (v) Any Photo Identity card issued by Central/State Government or PSU.

Address proof

Physical Verification of address:-

Copy of any one of the following address proof for the remitter as well as the payee :Electoral Photo identity card, Bank/POSB PB, Current electricity bill/telephone bill.Address of such remitters should be got verified from State Govt./Gram Panchayat/Postman of that area before acceptance of remittance.

Additional requirement Copy of the document proving source from which fund are received by remitter.

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Record keepingPost Office Money Remittances

HO KYC documents should be attached with office copy of booking and payment voucher.

SO KYC documents should be attached with office copy of booking and payment voucher.

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Reporting of transactions

Category (Cash Transaction) Method of monitoring

All cash remittances exceeding 1000000/- Prepare list & send to Head of Division on 3rd of following month.Head of the Division to Circle by 5th Head of the Circle to Principal officer at Directorate by 8th All cash remittances in series which are less

than 1000000/- at a time but are integrated & total exceeds 1000000/- in a month in the name of same customer.

Category (Suspected Transaction) Method of monitoringCash is accepted & Forged or counterfeit currency notes used or forgery of Security or documents

Prepare list & send to Head of Division on next working day.Head of the Division to Circle by next working day of receipt from PO Head of the Circle to Principal officer at Directorate by next working day of receipt from Head of the Division.

Any attempted remittance of Forged or counterfeit currency notes used or forgery of Security or documents

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Penalty

• In case of non-implementation of AML/CFT norms, a penalty from Rs.10,000 to Rs. 1,00,000 can be imposed under PML Act and rules in addition to disciplinary action.