AML

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AMl  

Product Module Overview

Anti Money Laundering is the term used by banks and other financial institutions to describe the variety of measures they have to combat this illegal activity and to prevent criminals from using individual banks and the financial system in general as the conduit for their Proceeds of Crime. In all major jurisdictions around the world, criminal legislation and regulation make it mandatory for banks and financial institutions to have arrangements to combat Money Laundering, with harsh criminal penalties for non-compliance.

"Know Your Customer (KYC) Standards and Anti-Money Laundering (AML) – Guidance Notes for Banks", basically for giving broad outlines of policy frame work based on international practices to serve as a reference guide to the banks in complying with the provisions of the RBI Circular dated 29th November 2004 on "Know Your Customer (KYC) Guidance - Anti-Money Laundering Standards" and also to meet the obligations of banks under the PMLA. The Guidance Notes helped in ensuring uniformity of approach among the banks in implementing the KYC Standards and AML measures. Since 2005, there has been a number of developments in the Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) internationally and within India that it was considered necessary to review and revise the Guidance Note to incorporate the new developments and to give a more detailed Note that could serve as a reference document to the banks on all KYC / AML / CFT.

Functional Details

Customer identification

Transaction Monitoring

Alerts

Match with UNL List

Match with UAPA List

Match with other criminal list

High value cash deposits in a day

High value cash withdrawals in a day

High value non-cash deposits in a day

High value non-cash withdrawals in a day

High value cash deposits in a month

High value cash withdrawals in a month

High value non-cash deposits in a month

High value non-cash withdrawals in a month

Sudden high value transaction for the client

Sudden increase in value of transaction in a month for the client

Sudden increase in number of transaction in a month for the client

High value transaction in a new account

High activity transaction in a new account

High value transaction in a dormant account

sudden activitty in adorment account

High cash trnsactiion inconsistent with profile

High cash trnsactiion inconsistent with profile

splitting of cash deposite just below INR 10,00,0000 in multiple accounts in a month

splitting of cash deposite just below INR 50,000

frequent cash deposite just below INR 10,000,000

routing of funds through multiple accounts

frequent low cash deposite

frequent low cash withdrawals

many to one fund transfer

one to many fund transfer

routing of funds through multiple locations

customer providing differ details to avoid linkage

multiple customer working together

repeated small cash deposite followed by immediate ATM withdrawals in different locations

repeated small value transfer from unrelated parties followed by immediate ATM withdrawales

repeated small value inward remittance from unrelated parties followed by immediate ATM withdrawales

repeated small value withdrawales in sensitive locations

repeated small value inward remittance from unrelated parties used for specified aactivites

majority of repayments in cash

large value cash withdrawals against international card

repeated small value cash withdrawals against international card

large repetitive card usage at same merchant

repayment of lon in cash

premature closure of large FDR thought PO/DD

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