RBI to review banks'' client verification progress
By The RBI had come out wit | 13 Mar 2004
The RBI had come out with a timetable in December, 2003, for banks to adhere to the KYC procedures for individual and corporate clients.
"We
expect phased implementation of the system to be in place
by December 2004," Usha Thorat, executive director,
RBI, said at a seminar on 'Anti-Money Laundering' jointly
organised by the Indian Banks' Association and KPMG.
Separate scrutiny will be done by special teams of the
RBI to assess the action taken at the branch level. Banks
have to undertake enhanced due diligence while opening
accounts and also monitor operations more closely.
KYC guidelines call for information on the income, wealth and financial/ business transactions of the account holder to be documented at the time of opening of the account to prepare a profile on the customer. They also require monitoring of activities of customer accounts for suspicious transactions on an on-going basis.
"Detailed
rules relating to money laundering monitoring will be
notified
soon," Thorat said. " Banks should designate
an officer to report data on questionable transactions
to the financial intelligence unit.," she added.
