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November 03, 2023
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International Transactions Above ₹50,000 Will Face Additional Scrutiny

What’s The Purpose?

The Central Government has introduced a revision to the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, with the objective of enhancing record-keeping protocols for international transactions exceeding ₹50,000. This initiative is geared towards bolstering efforts to curb terror financing.

What Changed?

  1. All international transactions exceeding ₹50,000 mandate meticulous examination to ensure compliance with regulatory standards and prevent potential financial irregularities. This stringent measure aims to enhance transparency and safeguard against illicit financial activities.
  2. Verification of beneficial owners becomes imperative, necessitating independent and rigorous scrutiny. This step is crucial for authenticating the legitimacy of transactions and preventing misuse or fraudulent practices within the financial ecosystem.
  3. Reporting entities are obligated to identify clients comprehensively, verifying their identities with precision. Additionally, a deep understanding of clients' business purposes is required to align with regulatory guidelines. This comprehensive approach ensures the legitimacy of transactions and bolsters the overall integrity of the financial system.
  4. To uphold confidentiality, reporting entities are mandated to establish and maintain adequate safeguards. These measures are designed to protect sensitive financial information from unauthorised access and enhance overall data security.