Money Transfer Agents to Keep Records for only Five Years

[RBI Circular No. 150 dated 25th June 2014]

Sub: Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/ Combating the Financing of Terrorism (CFT)/ Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 – Money Transfer Service Scheme - Change in period of maintenance and preservation of records

Please refer to clause (a) of para 3.2 and clause (iii) – ‘Maintenance and Preservation of Record’ of para 5.12 of our A.P. (DIR Series) Circular No.18 [A.P. (FL/RL Series) Circular No.05] dated November 27, 2009 on the captioned subject, as amended from time to time.

2.  In terms of the above mentioned provisions, Authorised Persons who are Indian Agents under MTSS are required to maintain and preserve records mentioned therein for a period of at least ten years. In view of the amendment to Section 12 of Prevention of Money Laundering Act, 2002 through Prevention of Money Laundering (Amendment) Act, 2012, Authorised Persons who are Indian Agents under MTSS are now required to maintain and preserve records for a period of at least five years.

3.  The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended from time to time and are without prejudice to permission /approvals, if any, required under any other law.