RBI/2013-14/497
UBD.BPD (PCB) Cir.No.48 /14.01.062/2013-14 February 18, 2014
The Chief Executive Officer
All Primary (Urban) Co-operative Banks.
Madam / Dear Sir,
Know Your Customer (KYC) Norms /Anti-Money Laundering
(AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks
under Prevention of Money Laundering Act (PMLA), 2002 – Amendment to Section
13(2) – Primary (Urban) Cooperative Banks (UCBs)
Please refer to our Master Circular UBD.BPD.
(PCB).MC.No.16/12.05.001/2013-14 dated July 1, 2013 on Know Your Customer
(KYC) Norms / Anti-Money Laundering (AML) Standards/Combating of Financing of
Terrorism (CFT)/Obligation of banks under PMLA, 2002.
2. With the enactment of Prevention of Money Laundering (Amendment) Act,
2012 and amendment to Section 13 of the Act which provides for “Powers of
Director to impose fine”, the section 13 (2) now reads as under:
“If the Director, in the course of any inquiry, finds that a reporting
entity or its designated director on the Board or any of its employees has failed
to comply with the obligations under this Chapter, then, without prejudice to
any other action that may be taken under any other provisions of this Act, he
may —
(a) issue a warning in writing; or
(b) direct such reporting entity or its
designated director on the Board or any of its employees, to comply with
specific instructions; or -
2 -
(c) direct such reporting entity or its
designated director on the Board or any of its employees, to send reports at
such interval as may be prescribed on the measures it is taking; or
(d) by an order, levy a fine on such
reporting entity or its designated director on the Board or any of its
employees, which shall not be less than ten thousand rupees but may extend to
one lakh rupees for each failure.”
3. In view of the above amendment, UCBs may
nominate a Director on their Boards as “designated Director” to ensure
compliance with the obligations under the Prevention of Money Laundering
(Amendment) Act, 2012.
Yours faithfully,
(A.K. Bera)
Principal Chief General Manager