Anti Money Laundering

Measures
Process of Money Laundering
Structuring –Placement of funds in fictitious names
Layering- Process of transferring the funds through
complex transactions
Integration- Process of mingling of illegal property
with legitimate property
 Anti Money Laundering Measures
• USA- USA Patriot Act- (Uniting and strengthening
America by providing Appropriate Tools required
to intercept and obstruct Terrorism Act), to
detect, investigate and prosecute Money
Laundering.
• September 2004- G-7 countries formed Financial
Action Task Force to combat money laundering.
Right now there are 35 countries who are
members of FATF. India has observer status.
 Anti Money Laundering Measures
• PMLA – Prevention of Money Laundering Act-
2002- Came into effect from July 2005- GOI
has formed rules under the Act.
• FIU-India- Set up by GOI on Nov 2004, and
independent body dealing with matters
relating to Money Laundering in Banking
Sector
 Anti Money Laundering Measures
(Issued as per Sec 35A of BR Act)
• PMLA Measures- Cash Transactions Report (CTR)- Rs.10 lacs
and above-to be reported to FIU New Delhi wihtin the next
month
• Suspicious Transactions Report (STR) to be submitted to FIU
New Delhi – witin 7 days.
• Closed accounts record to be preserved for 10 years from the
date of cessasion of the account.
• Issue of DD for Rs.50,000/ and above should be only by debit
to customer’s account