Are you aware that banks have strict reporting obligations to prevent money laundering? Failing to comply can result in severe penalties, impacting both financial institutions and individuals.
Who Should Watch?
- ✅ Bankers & Finance Professionals
- ✅ Compliance Officers & Risk Managers
- ✅ IIBF Certification Aspirants
- ✅ Anyone interested in AML (Anti-Money Laundering) regulations
👉 Watch the full video below for an in-depth breakdown:
Key Reporting Obligations Under PMLA
1. Cash Transaction Report (CTR)
- Transactions above ₹10 lakh (Indian or foreign currency) must be reported.
- Multiple smaller transactions (aggregating to ₹10 lakh in a month) also qualify.
- Reporting Frequency: Monthly (by the 15th of the following month).
- Penalty for Delay: ₹10,000 to ₹1 lakh per violation.
2. Suspicious Transaction Report (STR)
- Transactions suspected to be linked with money laundering or criminal activities.
- Can be attempted or completed transactions.
- Must be reported within 7 days of suspicion.
3. Counterfeit Currency Report (CCR)
- If fake currency notes or forged security documents are detected.
- Report all instances by the 15th of the following month.
4. Non-Profit Organization Transaction Report (NTR)
- Donations above ₹10 lakh to charitable organizations.
- Includes both Indian & foreign currency transactions.
- Reporting Frequency: Monthly.
5. Cross-Border Wire Transfer Report (CBTR)
- Transactions above ₹5 lakh involving foreign remittances.
- Applies to both inward & outward transfers.
- Reporting Frequency: Monthly.
[FREE EPDF] KYC AML | AML Legislation at National Level Explained | Chapter 5
Consequences of Non-Compliance
🚨 Delay in Reporting = Multiple Violations!
If a report due on 15th Feb is submitted on 21st Feb, that’s 6 violations (one per day) = ₹6 lakh penalty!
🚨 Failure to report = Severe legal consequences!
The FIU-IND Director can impose monetary penalties and take further regulatory action against the bank.
Download PDF – Full KYC & AML Compliance Guide
📥 Click here to download a comprehensive PDF covering all key reporting obligations & AML guidelines for banks.
Conclusion
Understanding banking compliance is not just important—it’s mandatory! Banks must report high-value and suspicious transactions on time to avoid heavy penalties. Compliance teams must stay updated with PMLA guidelines and implement automated monitoring systems to detect financial fraud.
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