AML provisions for Remittances Domestic/International 1

Objective A ntimoney laundeing is applicable to domestic and international money remittance also Know Your Customers (KYC) Customer Due Diligence (CDD) 2

Risk categories : Risk CategoryAll 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 3

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 RiskAbove Rs.10 lakh. 4

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/- NormsProof Photograph No KYC required. Identity proof Address proof 5

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 NormsProof 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. 6

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. NormsProof 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. Address proof Copy of any one of the following address proof for the r emitter 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. 7

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 NormsProof Identity proofCopy 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 requirementCopy of the document proving source from which fund are received by remitter. 8

Record keeping Post OfficeMoney 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. 9

Reporting of transactions Category (Cash Transaction)Method of monitoring All cash remittances exceeding /-Prepare list & send to Head of Division on 3 rd of following month. Head of the Division to Circle by 5 th Head of the Circle to Principal officer at Directorate by 8 th All cash remittances in series which are less than /- at a time but are integrated & total exceeds /- in a month in the name of same customer. Category (Suspected Transaction)Method of monitoring Cash 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 10

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. 11