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Section 5: Procedure and manner of maintaining inforrnation

The Prevention of Money-laundering (Maintenance of Records) Rules, 2005Central Rules · 2003

(l) Every reporting entity shall maintain information in respect of transactions with its client referred to in rule 3 in accordance with the procedure and manner as may be specified by its regulator from time to time.

1. Ins. by G.5.R. 576(E), dated 27th August, 2013 (w.e.f. 27-8-2013).

2. Subs. by G.5.R. 76(E), dated 12th February, 2010, for "shall contain" (w.e.f. 12-2-2010).

3. Subs. by G.S.R 576(E), dated 27th August, 2013, for rule 5 (w.e.f. 27-8-2013). Earlier rule 5 was amended by G.5.R. 717(E), dated 13th December, 2005 (w.e.f. 13-12-2005), by G.5.R. 816(E), dated 12th November, 2009 (w.e.f. 12-11-2009)and by G.S.R. 76(E), dated 12th Contd. on next page 82 The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 [Rule 5

(2)Every reporting entity shall evolve an internal mechanism for maintaining such information in such form and manner and at such intervals as may be specified by its regulator from time to time.

(3) It shall be the duty of every reporting entity, its designated director, officersand employees to observe the procedure and the manner of maintaining information as specified by its regulator under sub-rule (1).]

l[***] 2[7. Procedure and manner of furnishing information.-(l) Every reporting entity shall communicate to the Director the name, designation and address of the Designated Director and the Principal Officer.

(2) The Principal Officer shall furnish the information referred to in clauses (A), (B), (BA), (C), (D), (E) and (F) of sub-rule (1) of rule 3 to the Director on the basis of information available with the reporting entity. A copy of such Contd. from previous page February, 2010 (w.e.f. 12-2-2010).Rule 5, before substitution by G.5.R. 576(E), dated 27th August, 2013, stood as under:

"5. Procedure and manner of maintaining information.-(l) Every banking company, financial institution and intermediary, as the case may be, shall maintain information in respect of transactions with its client referred to in rule 3 in accordance with the procedure and manner as may be specified by its Regulator, from time to time.

(2) Every banking company, financial institution and intermediary, shall evolve an internal mechanism for maintaining such information in such form and at such intervals as may be specified by its Regulator, from time to time.

(3) It shall be the duty of every banking company, financial institution and intermediary, as the case may be, to observe the procedure and the manner of maintaining information as specified by its Regulator, under sub-rule (1).". '

1. Rule 6 omitted by G.S.R. 576(E)~ dated 27th August, 2013' (w.e.f. 27-8-2013). Earlier rule 6 was substituted by G.S.R. 816(E), dated 12th November, 2009 (w.e.f. 12-11-2009).

Rule 6, before omission by G.S.R. 576(E),dated 27th August, 2013, stood as under:

"6. Retention of records of transactions.-The records referred to in rule 3 shall be maintained for a period of ten years from the date of transactions between the client and the banking company, financial institution or intermediary, as the case may be.".

2. Subs. by C.5.R. 576(E), dated 27th August, 2013, for rule 7 (w.e.f. 27-8-2013). Earlier rule 7 was amended by C.S.R. 717(E),dated 13th December, 2005 (w.e.f. 13-12-2005),by G.S.R 76(E),dated 12th February, 2010 (w.e.f. 12-2-2010).Rule 7, before omission by C.S.R. 576(E), dated 27th August, 20i3, stood as under:

"7. Procedureand manner offurnishing information.-(1) Every banking company, financial institution and intermediary, as the case may be, shall communicate the name, designation and address of the Principal Officer to the Director.

(2)The Principal Officer shall furnish the information referred to in clauses (A), (B),(BA), (C) and (D) of sub-rule (1) of rule 3 to the Director on the basis of information available with the banking company, financial institution and intermediary, as the case may be. A copy of such information shall be retained by the Principal Officer for the purposes of official record.

(3) Every banking company, financial institution and intermediary may evolve an internal mechanism for furnishing information referred to in clauses (A), (B), (BA), (C) and (D) of sub-rule (1) of rule 3 in such form and at such intervals as may be directed by its Regulator.

(4) It shall be the duty of every banking company, financial institution and intermediary to observe the procedure and the manner of furnishing information as specified by its Regulator, under sub-rule (3).".

The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 82ARule 8] information shall be retained by the Principal Officer for the purposes of official record.

(3)Every reporting entity shall evolve an internal mechanism having regard to any guidelines issued by l[the Director in consultation with, its] regulator, for detecting the transactions referred to in clauses (A), (B), (BA), (C), (D), (E) and (F) of sub-rule (1) of rule 3 and for furnishing information about such transactions in such form as may be directed by l[the Director in consultation with,] its Regulator.

(4) It shall be the duty of every reporting entity, its designated director, officers and employees to observe the procedure and the manner of furnishing information as specified by l[the Director in consultation with,] its Regulator.]

Where this provision sits

ActThe Prevention of Money-laundering (Maintenance of Records) Rules, 2005
Section5
Marginal noteProcedure and manner of maintaining inforrnation
JurisdictionCentral
StatusIn force as published by the source

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