Please
refer to Prudential Regulations M-1 & M-2 for Corporate/
Commercial Banking and instructions issued from time to
time in this respect.
2. The following additions/ amendments are made in aforesaid
Prudential Regulations.
A.
Substitution of Regulation M-1, Know Your Customer
(KYC)
Regulation
M-1, Know Your Customer (KYC) has been substituted with
Regulation M-1, Customer Due Diligence (CDD) as per Annexure-I
attached.
B.
Amendments/ Additions in Regulation M-2 (Anti-Money
Laundering Measures)
Existing
paragraph 1 (d) may be renumbered as (f) and two new paragraphs
namely (d) & (e) should be inserted as follows:
(d)
Beneficiary financial institutions shall adopt effective
risk-based procedures for identifying and handling wire
transfers that are not accompanied by complete originator
information. Wire transfers with incomplete originator
information may be seen with suspicion which may require
reporting to FMU or termination of the transaction.
Banks/ DFIs should remain careful from financial institutions
which do not comply with aforesaid requirements by limiting
or terminating business relationship.
(e)
Banks/ DFIs shall not allow personal accounts to be used
for business purposes. To ensure the compliance of this
requirement, banks/ DFIs should obtain satisfactory information
on the purpose and intended nature of the relationship
and financial status including sources of income etc.
from the customer.
