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Compliance Guidelines for Money Laundering Prevention in Post Offices

Implementation of KYC and CDD norms under Prevention of Money Laundering Act for small savings schemes in Post Offices to prevent money laundering and terrorism financing. Guidelines for different risk categories, minors, joint holders, attestation requirements, and reporting of suspicious transactions. Penalties for non-compliance.

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Compliance Guidelines for Money Laundering Prevention in Post Offices

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  1. Provisions under Prevention of Money Laundering Act for savings schemes

  2. Objective Implementation of the following norms in the Post Offices: • Know Your Customers (KYC) • Customer Due Diligence (CDD) • Purpose of the act is to prevent money laundering and combating financing terrorism is small savings schemes • So, the above norms are to be applied in PO transactions

  3. Know your customer • Three risk categories defined • Norms for each category spelt out.

  4. Three risk categories : Know your customer

  5. Low Risk : Norms

  6. Low Risk : Norms

  7. Medium Risk : Norms

  8. Medium Risk : Norms

  9. High Risk :

  10. High Risk :

  11. High Risk :

  12. FAQs • Minors - If account/certificate holder is minor, norms are applicable to guardians • Joint Holders- In case of joint holders , norms are applicable to all joint account/certificate holders • Attestation - Documents should be self-attested or in case of illiterate depositors should be attested by Gazetted Officer/Sarpanch/ Branch/Sub/Head/Chief Postmaster or Postman/Gram DakSewak • Delivery Agent • KYC documents already submitted - Customer who have already submitted KYC documents in any purchase, need not to submit these again. Account number/purchase application number through which KYC documents were given earlier to be mentioned. Note : Name and address of the customer should match with earlier KYC Documents. The Supervisor to pass the remarks “KYC documents already submitted vide A/C No./Regn. No.___dated____” • Deposit is made through agent - The agent should also attest all KYC documents. In case of direct investment, self attestation or attestation by Gazetted Officer is required. • Mandatory : “KYC documents Verified and attached” needs to be written by the Supervisor on account opening form or purchase application

  13. Record keeping : Documents

  14. Record keeping : Documents

  15. Record keeping : Preservation

  16. Reporting of transactions

  17. Reporting of transactions

  18. Definition of Suspicious transaction • A transaction including an attempted transaction, whether or not made in cash which, to a person acting in good faith- (i) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the schedule to the Act regardless of the value involved: or (ii) appears to be made in circumstances of unusual or unjustified complexity: or (iii) appears to have no economic rationale or bonafide purpose: or • give rise to a reasonable ground of suspicion that involve financing of the activities relating to terrorism; (v) Transaction includes deposit, w/d, exchange or transfer of funds in whatever currency, whether in cash or in cheque , payment order or other instruments or by electronic or other physical means.

  19. Instructions for existing Accounts/Certificates

  20. Instructions for existing Accounts/Certificates

  21. General instructions

  22. 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.

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