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  Business   In Other News  23 Oct 2017  Banks told to verify Ids to weed out fakes

Banks told to verify Ids to weed out fakes

PTI
Published : Oct 23, 2017, 4:52 am IST
Updated : Oct 23, 2017, 4:52 am IST

The PMLA and its rules impose obligation on reporting entities like banks, financial institutions and intermediaries to verify identity of clients.

The new rule now requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”.
 The new rule now requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”.

New Delhi: The government has made it mandatory for banks and financial institutions to check the original identification documents of individuals dealing in cash above the prescribed threshold, to weed out the use of forged or fake copies.

The department of revenue in the finance ministry has issued a gazette notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules.

The new rule now requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”.

The Prevention of Money Laundering Act (PMLA) forms the core of the legal framework put in place by India to combat money laundering and generation of black money.

The PMLA and its rules impose obligation on reporting entities like banks, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information to Financial Intelligence Unit of India.     

Tags: fake copies, maintenance of records
Location: India, Delhi, New Delhi