{"id":28471,"date":"2025-01-30T17:15:28","date_gmt":"2025-01-30T11:45:28","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=28471"},"modified":"2026-01-16T00:28:08","modified_gmt":"2026-01-15T18:58:08","slug":"obligations-for-maintenance-of-records-under-pmla-fiu-ind","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/","title":{"rendered":"Obligations for Maintenance of Records under PMLA- FIU-IND"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6f44a077ee\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6f44a077ee\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Obligations_for_Maintenance_of_Records_under_PMLA_%E2%80%93_FIU-IND\" title=\"Obligations for Maintenance of Records under PMLA &#8211; FIU-IND\">Obligations for Maintenance of Records under PMLA &#8211; FIU-IND<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Definition_of_Records_under_Prevention_of_Money_Laundering_Act\" title=\"Definition of Records under Prevention of Money Laundering Act\">Definition of Records under Prevention of Money Laundering Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#What_are_key_requirements_for_maintenance_of_records_after_FIU-IND_registration\" title=\"What are key requirements for maintenance of records after FIU-IND registration?\u00a0\">What are key requirements for maintenance of records after FIU-IND registration?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#What_Constitutes_a_Suspicious_Transaction_under_PMLA\" title=\"What Constitutes a Suspicious Transaction under PMLA?\">What Constitutes a Suspicious Transaction under PMLA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Reporting_a_Transaction_under_Both_CTR_and_STR\" title=\"Reporting a Transaction under Both CTR and STR\">Reporting a Transaction under Both CTR and STR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Summary_of_Travel_Rule_Data_Requirements_Originator_Beneficiary_REs\" title=\"Summary of Travel Rule Data Requirements (Originator &amp; Beneficiary REs)\">Summary of Travel Rule Data Requirements (Originator &amp; Beneficiary REs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Travel_Rule_%E2%80%93_Roles_and_Responsibilities\" title=\"Travel Rule \u2013 Roles and Responsibilities\">Travel Rule \u2013 Roles and Responsibilities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Suspicious_Transaction_Report_STR\" title=\"Suspicious Transaction Report (STR)\">Suspicious Transaction Report (STR)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Obligation_to_Report\" title=\"Obligation to Report\">Obligation to Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Alerts_and_Red_Flag_Indicators_under_Suspicious_Transaction_Report\" title=\"Alerts and Red Flag Indicators under\u00a0Suspicious Transaction Report\">Alerts and Red Flag Indicators under\u00a0Suspicious Transaction Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Format_and_Quality_of_Suspicious_Transaction_Report\" title=\"Format and Quality of\u00a0Suspicious Transaction Report\">Format and Quality of\u00a0Suspicious Transaction Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Due_Diligence_and_Quality_of_Suspicious_Transaction_Report\" title=\"Due Diligence and Quality of Suspicious Transaction Report\">Due Diligence and Quality of Suspicious Transaction Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#No_Threshold_for_Suspicious_Transaction_Report_Filing\" title=\"No Threshold for\u00a0Suspicious Transaction Report\u00a0Filing\">No Threshold for\u00a0Suspicious Transaction Report\u00a0Filing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Prohibition_on_Tipping-off\" title=\"Prohibition on Tipping-off\">Prohibition on Tipping-off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Submission_of_Other_Reports_to_FIU-IND\" title=\"Submission of Other Reports to FIU-IND\">Submission of Other Reports to FIU-IND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#FIU-IND_Registration_Checklist_for_VDA_Service_Providers_VDA_SPs\" title=\"FIU-IND Registration Checklist for VDA Service Providers (VDA SPs)\">FIU-IND Registration Checklist for VDA Service Providers (VDA SPs)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#FIU_IND_Registration_Eligibility_Applicability\" title=\" FIU IND Registration Eligibility &amp; Applicability\"> FIU IND Registration Eligibility &amp; Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Online_Registration_of_FIU-IND_Registration_FINGate_Portal\" title=\"Online Registration of FIU-IND Registration (FINGate Portal)\">Online Registration of FIU-IND Registration (FINGate Portal)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Record_Keeping_Obligations_under_the_PMLA\" title=\"Record Keeping Obligations under the PMLA\">Record Keeping Obligations under the PMLA<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Measures_to_be_Taken_under_the_PMLA\" title=\"Measures to be Taken\u00a0 under the PMLA\">Measures to be Taken\u00a0 under the PMLA<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Documents_Information_to_be_Submitted_for_FIU-IND_Registration\" title=\"Documents &amp; Information to be Submitted for FIU-IND Registration\">Documents &amp; Information to be Submitted for FIU-IND Registration<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#In-Person_Meeting_Readiness\" title=\"In-Person Meeting Readiness\">In-Person Meeting Readiness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Registration_Outcome\" title=\"Registration Outcome\">Registration Outcome<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/obligations-for-maintenance-of-records-under-pmla-fiu-ind\/#Penalty_for_Non-Compliance_Maintenance_of_Records_under_PMLA\" title=\"Penalty for Non-Compliance: Maintenance of Records under PMLA\">Penalty for Non-Compliance: Maintenance of Records under PMLA<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-28478\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting.jpg\" alt=\"FIU-IND-Reporting\" width=\"1200\" height=\"700\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting.jpg 1200w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting-300x175.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting-1024x597.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting-768x448.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/FIU-IND-Reporting-800x467.jpg 800w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Obligations_for_Maintenance_of_Records_under_PMLA_%E2%80%93_FIU-IND\"><\/span><a href=\"https:\/\/carajput.com\/archives\/fiu-ind-obligations-for-maintenance-of-records-under-pmla.pdf\"><span style=\"color: #000080;\"><strong>Obligations for Maintenance of Records under PMLA &#8211; FIU-IND<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under Section 12 of the Prevention of Money Laundering Act, 2002 (PMLA), every reporting entity is required to maintain records of all transactions in a manner that enables the reconstruction of individual transactions. This ensures that the information can be used for analysis and investigation if required. These obligations are outlined in more detail under Rule 3 of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Definition_of_Records_under_Prevention_of_Money_Laundering_Act\"><\/span><span style=\"color: #000080;\"><strong>Definition of Records under Prevention of Money Laundering Act<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to Section 12(1), records include books, documents, and transactions stored in electronic form (e.g., computers or any prescribed format). &amp; these records must be easily accessible for reconstruction and examination in case of an investigation or inquiry.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-28477\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/obligation-under-pmla-l.jpg\" alt=\"obligation-under-pmla-FIU IND \" width=\"1024\" height=\"686\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/obligation-under-pmla-l.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/obligation-under-pmla-l-300x201.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/obligation-under-pmla-l-768x515.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/obligation-under-pmla-l-800x536.jpg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_key_requirements_for_maintenance_of_records_after_FIU-IND_registration\"><\/span><span style=\"color: #000080;\"><strong>What are key requirements for maintenance of records after FIU-IND registration?\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong><span style=\"color: #000080;\">Transaction Records: Reporting entities must maintain records of all transactions, including:<\/span><\/strong>\n<ul>\n<li>Cash transactions exceeding \u20b910 lakh or its equivalent in foreign currency.<\/li>\n<li>Series of cash transactions below \u20b910 lakh but aggregating to more than \u20b910 lakh within a month.<\/li>\n<li>Transactions involving non-profit organizations exceeding \u20b910 lakh.<\/li>\n<li>Transactions involving forged or counterfeit currency or valuable securities.<\/li>\n<li>Suspicious transactions, irrespective of whether they involve cash.<\/li>\n<li>Cross-border wire transfers exceeding \u20b95 lakh or equivalent in foreign currency.<\/li>\n<li>Purchase or sale of immovable property worth \u20b950 lakh or more, registered by the reporting entity.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong>Identity Records:<\/strong> <\/span>Reporting entities must also maintain documentation evidencing the identity of their clients and beneficial owners, as well as records of account files and business correspondence relating to clients.<\/li>\n<li><strong><span style=\"color: #000080;\">Retention Period:<\/span> <\/strong>Transaction records should\u00a0be maintained for five years from the date of the transaction. and Documents evidencing client identity: These should be kept for five years after the end of the business relationship or the closure of the account, whichever is later.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"What_Constitutes_a_Suspicious_Transaction_under_PMLA\"><\/span><span style=\"color: #000080;\"><strong>What Constitutes a Suspicious Transaction under PMLA?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A suspicious transaction under Rule 2 of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 can include any transaction or attempted transaction that raises reasonable suspicion. Suspicious transactions include:<\/p>\n<ul>\n<li>Reasonable grounds for suspicion that the transaction may involve proceeds of a crime.<\/li>\n<li>Transactions made under unusual or unjustified complexity.<\/li>\n<li>The Transactions that appear to lack economic rationale or bona fide purpose.<\/li>\n<li>Transactions that reasonably suspect financing of terrorism, including those linked to terrorist acts or organizations.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-28480\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/Records-FIU-.jpg\" alt=\"Records FIU\" width=\"1068\" height=\"753\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/Records-FIU-.jpg 515w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/01\/Records-FIU--300x211.jpg 300w\" sizes=\"(max-width: 1068px) 100vw, 1068px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reporting_a_Transaction_under_Both_CTR_and_STR\"><\/span><span style=\"color: #000080;\"><strong>Reporting a Transaction under Both CTR and STR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A transaction can be reported under both Cash Transaction Report and Suspicious Transaction Report. For instance, if a cash transaction exceeds the prescribed threshold (e.g., \u20b910 lakh) and has elements that raise suspicion (e.g., irregular or unexplained sources), it should be reported both under Cash Transaction Report and Suspicious Transaction Report.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Summary_of_Travel_Rule_Data_Requirements_Originator_Beneficiary_REs\"><\/span><span style=\"color: #000080;\"><strong data-start=\"257\" data-end=\"332\">Summary of Travel Rule Data Requirements (Originator &amp; Beneficiary REs)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 data-start=\"334\" data-end=\"391\"><span class=\"ez-toc-section\" id=\"Travel_Rule_%E2%80%93_Roles_and_Responsibilities\"><\/span><span style=\"color: #000080;\"><strong data-start=\"338\" data-end=\"391\">Travel Rule \u2013 Roles and Responsibilities<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"TyagGW_tableContainer\">\n<div class=\"group TyagGW_tableWrapper flex flex-col-reverse w-fit\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"393\" data-end=\"2014\">\n<thead data-start=\"393\" data-end=\"487\">\n<tr data-start=\"393\" data-end=\"487\">\n<th data-start=\"393\" data-end=\"406\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"395\" data-end=\"405\">Aspect<\/strong><\/span><\/th>\n<th data-start=\"406\" data-end=\"446\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"408\" data-end=\"445\">Originating Reporting Entity (RE)<\/strong><\/span><\/th>\n<th data-start=\"446\" data-end=\"487\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"448\" data-end=\"485\">Beneficiary Reporting Entity (RE)<\/strong><\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"580\" data-end=\"2014\">\n<tr data-start=\"580\" data-end=\"777\">\n<td data-start=\"580\" data-end=\"623\" data-col-size=\"sm\"><strong data-start=\"582\" data-end=\"622\">Submission of Originator Information<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"623\" data-end=\"703\">Mandatory \u2013 must submit required originator information to the beneficiary RE<\/td>\n<td data-col-size=\"md\" data-start=\"703\" data-end=\"777\">Mandatory \u2013 must obtain originator information from the originating RE<\/td>\n<\/tr>\n<tr data-start=\"778\" data-end=\"980\">\n<td data-start=\"778\" data-end=\"823\" data-col-size=\"sm\"><strong data-start=\"780\" data-end=\"822\">Verification of Originator Information<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"823\" data-end=\"896\">Must verify accuracy as part of its Client Due Diligence (CDD) process<\/td>\n<td data-col-size=\"md\" data-start=\"896\" data-end=\"980\">May rely on verification done by originating RE but must ensure data consistency<\/td>\n<\/tr>\n<tr data-start=\"981\" data-end=\"1177\">\n<td data-start=\"981\" data-end=\"1025\" data-col-size=\"sm\"><strong data-start=\"983\" data-end=\"1024\">Submission of Beneficiary Information<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1025\" data-end=\"1106\">Mandatory \u2013 must submit required beneficiary information to the beneficiary RE<\/td>\n<td data-col-size=\"md\" data-start=\"1106\" data-end=\"1177\">Mandatory \u2013 must obtain beneficiary information from originating RE<\/td>\n<\/tr>\n<tr data-start=\"1178\" data-end=\"1353\">\n<td data-start=\"1178\" data-end=\"1224\" data-col-size=\"sm\"><strong data-start=\"1180\" data-end=\"1223\">Verification of Beneficiary Information<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1224\" data-end=\"1291\">Must monitor transaction to ensure no suspicious activity arises<\/td>\n<td data-col-size=\"md\" data-start=\"1291\" data-end=\"1353\">Must independently verify beneficiary information received<\/td>\n<\/tr>\n<tr data-start=\"1354\" data-end=\"1504\">\n<td data-start=\"1354\" data-end=\"1375\" data-col-size=\"sm\"><strong data-start=\"1356\" data-end=\"1374\">Record Keeping<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1375\" data-end=\"1439\">Must obtain and retain originator and beneficiary information<\/td>\n<td data-col-size=\"md\" data-start=\"1439\" data-end=\"1504\">Must obtain and retain originator and beneficiary information<\/td>\n<\/tr>\n<tr data-start=\"1505\" data-end=\"1702\">\n<td data-start=\"1505\" data-end=\"1531\" data-col-size=\"sm\"><strong data-start=\"1507\" data-end=\"1530\">Sanctions Screening<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1531\" data-end=\"1617\">Must screen beneficiary to ensure the beneficiary is not a sanctioned person\/entity<\/td>\n<td data-col-size=\"md\" data-start=\"1617\" data-end=\"1702\">Must screen originator to ensure the originator is not a sanctioned person\/entity<\/td>\n<\/tr>\n<tr data-start=\"1703\" data-end=\"1873\">\n<td data-start=\"1703\" data-end=\"1732\" data-col-size=\"sm\"><strong data-start=\"1705\" data-end=\"1731\">Transaction Monitoring<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1732\" data-end=\"1802\">Must monitor transactions and report to FIU-IND if suspicion arises<\/td>\n<td data-col-size=\"md\" data-start=\"1802\" data-end=\"1873\">Must monitor transactions and report to FIU-IND if suspicion arises<\/td>\n<\/tr>\n<tr data-start=\"1874\" data-end=\"2014\">\n<td data-start=\"1874\" data-end=\"1913\" data-col-size=\"sm\"><strong data-start=\"1876\" data-end=\"1912\">Suspicious Transaction Reporting<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1913\" data-end=\"1963\">Mandatory reporting where suspicion is detected<\/td>\n<td data-col-size=\"md\" data-start=\"1963\" data-end=\"2014\">Mandatory reporting where suspicion is detected<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p data-start=\"2057\" data-end=\"2125\">Data sharing under the Travel Rule is mandatory, not optional.\u00a0 Originating RE is primarily responsible for collecting and verifying originator information.\u00a0 Beneficiary RE must ensure that information received is complete, consistent, and usable. Both REs must maintain records, conduct sanctions screening, and monitor transactions for suspicious activity.<\/p>\n<h2 data-start=\"284\" data-end=\"330\"><span class=\"ez-toc-section\" id=\"Suspicious_Transaction_Report_STR\"><\/span><span style=\"color: #000080;\"><strong data-start=\"287\" data-end=\"330\">Suspicious Transaction Report (STR)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"332\" data-end=\"366\"><span class=\"ez-toc-section\" id=\"Obligation_to_Report\"><\/span><span style=\"color: #000080;\"><strong data-start=\"336\" data-end=\"366\">Obligation to Report<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"367\" data-end=\"652\">In accordance with Rule 7(2) and Rule 8(2) read with Rule 3(1)(D) of the PMLR, every Reporting Entity (RE) shall promptly report suspicious transactions, including attempted suspicious transactions, identified through transaction monitoring systems, to FIU-IND.<\/p>\n<h3 data-start=\"659\" data-end=\"703\"><span class=\"ez-toc-section\" id=\"Alerts_and_Red_Flag_Indicators_under_Suspicious_Transaction_Report\"><\/span><span style=\"color: #000080;\"><strong data-start=\"663\" data-end=\"703\">Alerts and Red Flag Indicators under\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong data-start=\"287\" data-end=\"330\">Suspicious Transaction Report<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"704\" data-end=\"847\">An alert is the first step in identifying a suspicious transaction and acts as a red flag triggered by potentially suspicious activity.\u00a0REs shall put in place robust systems and processes to generate alerts based on predefined Red Flag Indicators (RFIs). The design and implementation of RFIs, including minimum alerts and parameters, shall be aligned with guidance issued by FIU-IND from time to time under Rule 7(3) of the PMLR.<\/p>\n<h3 data-start=\"1168\" data-end=\"1208\"><span class=\"ez-toc-section\" id=\"Format_and_Quality_of_Suspicious_Transaction_Report\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1172\" data-end=\"1208\">Format and Quality of\u00a0<\/strong><strong data-start=\"287\" data-end=\"330\">Suspicious Transaction Report<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1209\" data-end=\"1413\">The format for reporting suspicious transactions (including attempted transactions), as required under Rule 7(3) and Rule 8(2) of the PMLR, shall be as prescribed by FIU-IND from time to time.\u00a0All STRs submitted to FIU-IND shall contain complete, accurate, and meaningful information, including Client KYC details, Wallet addresses,\u00a0Transaction details, Counterparty information, Grounds for suspicion, and\u00a0Any other relevant information.<\/p>\n<h3 data-start=\"1684\" data-end=\"1731\"><span class=\"ez-toc-section\" id=\"Due_Diligence_and_Quality_of_Suspicious_Transaction_Report\"><\/span><strong data-start=\"1688\" data-end=\"1731\"><span style=\"color: #000080;\">Due Diligence and Quality of <\/span><\/strong><span style=\"color: #000080;\"><strong data-start=\"287\" data-end=\"330\">Suspicious Transaction Report<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1732\" data-end=\"1929\">Identification and reporting of STRs is a serious statutory obligation under the PMLA. REs shall ensure that every STR is filed only after due application of mind and necessary diligence.\u00a0To ensure high-quality STR reporting, REs shall effectively leverage all available data, including KYC and CDD information, Transactional data, Technical and metadata information, IP addresses and device identifiers, and Behavioral patterns and risk indicators.\u00a0REs are expected to make genuine and sustained efforts to file high-quality STRs, which are a critical tool for detecting, deterring, and investigating illicit financial activities.<\/p>\n<h3 data-start=\"2405\" data-end=\"2446\"><span class=\"ez-toc-section\" id=\"No_Threshold_for_Suspicious_Transaction_Report_Filing\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2409\" data-end=\"2446\">No Threshold for\u00a0<\/strong><strong data-start=\"287\" data-end=\"330\">Suspicious Transaction Report<\/strong><strong data-start=\"2409\" data-end=\"2446\">\u00a0Filing<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2447\" data-end=\"2613\">REs shall file an STR irrespective of the transaction amount or any threshold limit, if there are reasonable grounds to believe that the transaction involves Proceeds of crime; or Financing of terrorism.<\/p>\n<h2 data-start=\"2670\" data-end=\"2707\"><span class=\"ez-toc-section\" id=\"Prohibition_on_Tipping-off\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2673\" data-end=\"2707\">Prohibition on Tipping-off<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2709\" data-end=\"2840\">In accordance with Section 12(2) and Section 12A(3) of the PMLA, read with Rule 8(6) of the PMLR, REs, including their Directors, Officers, and Employees (permanent and contractual) shall ensure that The fact of maintaining records; and The furnishing of information to FIU-IND\u00a0is kept strictly confidential.\u00a0The prohibition on tipping-off applies before, during, and after the filing of an STR. REs shall ensure that no information relating to STRs or related actions is disclosed to the client or to any unauthorized person at any level.<\/p>\n<h2 data-start=\"3299\" data-end=\"3348\"><span class=\"ez-toc-section\" id=\"Submission_of_Other_Reports_to_FIU-IND\"><\/span><span style=\"color: #000080;\"><strong data-start=\"3302\" data-end=\"3348\">Submission of Other Reports to FIU-IND<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li data-start=\"3350\" data-end=\"3485\">REs shall submit a Monthly Report to FIU-IND in the form, manner, and within timelines prescribed by FIU-IND from time to time. The Monthly Report shall include, in a consolidated manner Key metrics and activity indicators, Compliance status, Reporting statistics, and Any other information as specified by FIU-IND.\u00a0Regulatory Emphasis on STR filing is substance-based, not amount-based,\u00a0Confidentiality is absolute,\u00a0Quality of reporting matters as much as timeliness<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FIU-IND_Registration_Checklist_for_VDA_Service_Providers_VDA_SPs\"><\/span><span style=\"color: #000080;\"><strong>FIU-IND Registration Checklist for VDA Service Providers (VDA SPs)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"FIU_IND_Registration_Eligibility_Applicability\"><\/span><span style=\"color: #000080;\"><strong> FIU IND Registration Eligibility &amp; Applicability<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Entity engaged in notified VDA activities under Notification S.O. 1072(E) dated 07-03-2023<\/li>\n<li>Activities are business-based, irrespective of physical presence in India<\/li>\n<li>The entity qualifies as a Reporting Entity (RE) under PMLA &amp; PMLR<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Pre-Registration Preparation for FIU-IND Registration<\/strong><\/span><\/p>\n<ul>\n<li>Appointment of Designated Director (DD)<\/li>\n<li>Must Appointment of Principal Officer (PO)<\/li>\n<li>Internal AML\/CFT\/CPF Policy approved by the board\/partners<\/li>\n<li>Risk-Based Approach (RBA) framework documented<\/li>\n<li>KYC, CDD, transaction monitoring, and Sanctions Screening systems in place<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Online_Registration_of_FIU-IND_Registration_FINGate_Portal\"><\/span><span style=\"color: #000080;\"><strong>Online Registration of FIU-IND Registration (FINGate Portal)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Entity registered on FINGate portal :<\/p>\n<ul>\n<li>Status shows \u201cAwaiting Approval.\u201d<\/li>\n<li>Temporary Reference ID generated<\/li>\n<li>Acknowledgement email received<\/li>\n<\/ul>\n<h2 data-start=\"246\" data-end=\"270\"><span class=\"ez-toc-section\" id=\"Record_Keeping_Obligations_under_the_PMLA\"><\/span><span style=\"color: #000080;\"><strong data-start=\"249\" data-end=\"270\">Record Keeping <\/strong><strong data-start=\"276\" data-end=\"310\">Obligations under the PMLA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"311\" data-end=\"496\">In accordance with Sections 12(1)(a) and 12(1)(e) of the PMLA, every Reporting Entity (RE) shall maintain and retain prescribed records relating to clients and transactions.\u00a0The RE shall ensure that All records and documents are securely preserved; and No records are destroyed or altered during the mandatory retention period.<\/p>\n<h3 data-start=\"671\" data-end=\"703\"><span class=\"ez-toc-section\" id=\"Measures_to_be_Taken_under_the_PMLA\"><\/span><span style=\"color: #000080;\"><strong data-start=\"675\" data-end=\"703\">Measures to be Taken\u00a0<\/strong><strong data-start=\"276\" data-end=\"310\"> under the PMLA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"705\" data-end=\"816\"><span style=\"color: #000080;\">The following measures shall be implemented for the <strong data-start=\"757\" data-end=\"815\">maintenance, preservation, and availability of records<\/strong>:<\/span><\/p>\n<p data-start=\"818\" data-end=\"1119\"><span style=\"color: #000080;\">a) <\/span><strong data-start=\"821\" data-end=\"854\"><span style=\"color: #000080;\">Client Identification Records :<\/span> <\/strong>REs shall maintain and preserve records relating to client identification and address details obtained at the time of onboarding and during the business relationship for a minimum period of five years after the account or business relationship is closed.<\/p>\n<p data-start=\"1126\" data-end=\"1300\"><span style=\"color: #000080;\">b) <strong data-start=\"1129\" data-end=\"1152\">Transaction Records : <\/strong><\/span>REs shall maintain and preserve complete records of all transactions for a minimum period of five years from the date of the transaction.<\/p>\n<p data-start=\"1307\" data-end=\"1389\"><span style=\"color: #000080;\">c) <\/span><strong data-start=\"1310\" data-end=\"1362\"><span style=\"color: #000080;\">Records Related to Investigations or Disclosures<\/span> : <\/strong>Where records relate to Ongoing investigations; or Transactions that are the subject of disclosures to FIU-IND,\u00a0such records shall be retained until confirmation is received that the case has been closed. Wherever practicable, REs shall Retain relevant client identification documents; and Report any suspicious transactions in accordance with the PMLA and PMLR.<\/p>\n<p data-start=\"1751\" data-end=\"2212\"><span style=\"color: #000080;\">d) <\/span><strong data-start=\"1754\" data-end=\"1795\"><span style=\"color: #000080;\">Transaction Reconstruction Capability :<\/span> <\/strong>REs shall maintain sufficient information to enable reconstruction of individual transactions, including:<\/p>\n<p style=\"padding-left: 40px;\" data-start=\"1751\" data-end=\"2212\">i. Nature and purpose of the transaction;<br data-start=\"1949\" data-end=\"1952\" \/>ii. Amount and type of Virtual Digital Asset (VDA) and\/or fiat currency involved, if any;<br data-start=\"2045\" data-end=\"2048\" \/>iii. Date of the transaction;<br data-start=\"2077\" data-end=\"2080\" \/>iv. Parties to the transaction (originator and beneficiary); and<br data-start=\"2144\" data-end=\"2147\" \/>v. Any other information required for Travel Rule compliance.<\/p>\n<p data-start=\"2219\" data-end=\"2360\"><span style=\"color: #000080;\">e) <strong data-start=\"2222\" data-end=\"2263\">Record Retention and Retrieval System :<\/strong> <\/span>REs shall implement a robust record management system with clearly defined procedures for Retention, Maintenance, and Preservation\u00a0of all transaction and account records as required under the PMLA, PMLR, and these Guidelines.\u00a0The system shall ensure that records Can be retrieved easily and promptly, and Are made available to competent authorities whenever required.<\/p>\n<p data-start=\"2668\" data-end=\"2794\"><span style=\"color: #000080;\">f) <strong data-start=\"2671\" data-end=\"2706\">Audit Trails and Data Integrity : <\/strong><\/span>REs shall preserve complete audit trails in a tamper-proof manner, including Verification responses, Time stamps, Authentication logs, and System access logs,\u00a0to ensure data integrity, traceability, and regulatory audit readiness.\u00a0Regulatory Focus Areas <span style=\"font-size: 16px;\">Minimum <\/span>five-year retention<span style=\"font-size: 16px;\"> is mandatory, <\/span><span style=\"font-size: 16px;\">Records must support <\/span>transaction reconstruction and Tamper-proof audit trails<span style=\"font-size: 16px;\"> are critical, <\/span><span style=\"font-size: 16px;\">Prompt availability to FIU-IND and law enforcement is essential<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Documents_Information_to_be_Submitted_for_FIU-IND_Registration\"><\/span><span style=\"color: #000080;\"><strong>Documents &amp; Information to be Submitted for FIU-IND Registration<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><span style=\"color: #000080;\"><strong>Business &amp; Ownership<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>Note on nature of services and mapping to notified VDA activities<\/li>\n<li>Corporate structure note with organogram<\/li>\n<li>Significant Beneficial Ownership (SBO) details<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong><span style=\"color: #000080;\">Statutory &amp; Financial Records<\/span><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Incorporation documents (MCA)<\/li>\n<li>Annual Returns, BS &amp; P&amp;L \u2013 last 3 financial years<\/li>\n<li>Registered office \/ principal place of business details<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><span style=\"color: #000080;\"><strong>Tax &amp; GST Compliance<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>GST registration certificates (all States\/UTs)<\/li>\n<li>required GST returns\u2014last 3 financial years<\/li>\n<li>Income-tax Returns<\/li>\n<li>TDS Forms 26Q \/ 26QF \/ 26QE (VDA transactions)<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong><span style=\"color: #000080;\">Contracts &amp; Business Relationships<\/span><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Agreements with exchanges, brokers, custodians, intermediaries, VDA SPs<\/li>\n<li>Brief scope note for each agreement<\/li>\n<li>PACT certificates from FIU-IND registered VDA SPs (where applicable)<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><span style=\"color: #000080;\"><strong>Declarations &amp; Questionnaires<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>Self-declaration \u2013 no criminal \/ law enforcement proceedings<\/li>\n<li>Duly filled FIU-IND AML\/CFT\/CPF Questionnaire<\/li>\n<\/ul>\n<ol start=\"6\">\n<li><span style=\"color: #000080;\"><strong>Cybersecurity &amp; Technology<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>under the Cyber Security Audit Certificate from CERT-In empanelled auditor<\/li>\n<li>Compliance with CERT-In Directions dated 28-04-2022<\/li>\n<li>Audit covers KYC, AML systems, wallets, APIs, cloud, incident response<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"In-Person_Meeting_Readiness\"><\/span><span style=\"color: #000080;\">In-Person Meeting Readiness<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>All documents submitted at least 15 days in advance<\/li>\n<li>DD &amp; PO availability confirmed (mandatory)<\/li>\n<li>Live demo readiness of:<\/li>\n<li>KYC &amp; CDD systems<\/li>\n<li>Transaction Monitoring<\/li>\n<li>Blockchain Analytics<\/li>\n<li>Travel Rule compliance<\/li>\n<li>Sanctions screening tools<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Registration_Outcome\"><\/span><span style=\"color: #000080;\">Registration Outcome<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>FIU-IND due diligence completed<\/li>\n<li>Approval granted by Director, FIU-IND<\/li>\n<li>FIU Reporting Entity ID (FIU RE-ID) issued<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Penalty_for_Non-Compliance_Maintenance_of_Records_under_PMLA\"><\/span><span style=\"color: #000080;\"><strong>Penalty for Non-Compliance: Maintenance of Records under PMLA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Non-registration attracts action under Section 13(2) of PMLA,\u00a0 FIU-IND may deny or cancel registration for non-compliance, Obligations are activity-based, not location-based.\u00a0 Failure to comply with the record-keeping obligations under PMLA may result in penalties. As per Section 13: The Director of FIU-IND may issue:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Written warnings.<\/li>\n<li>Specific instructions for compliance.<\/li>\n<li>Directions to send periodic reports on compliance efforts.<\/li>\n<li>Monetary penalties, ranging from \u20b910,000 to \u20b91 lakh for each failure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>This serves as a strong deterrent against non-compliance and highlights the importance of maintaining records in accordance with the law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Obligations for Maintenance of Records under PMLA &#8211; FIU-IND Under Section 12 of the Prevention of Money Laundering Act, 2002 (PMLA), every reporting entity is required to maintain records of all transactions in a manner that enables the reconstruction of individual transactions. This ensures that the information can be used for analysis and investigation if &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10406],"tags":[10311],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28471"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=28471"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28471\/revisions"}],"predecessor-version":[{"id":30967,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28471\/revisions\/30967"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=28471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=28471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=28471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}