Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Change in period of maintenance and preservation of records
SECTION 12 of Prevention of Money Laundering Act, 2002 was amended vide Prevention of Money Laundering (Amendment) Act, 2012. In terms of the earlier amended provisions, Authorised Persons were 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 in 2012, Authorised Persons are now required to maintain and preserve records for a period of at least five years. The same is clarified now by RBI. This applies for Money Changing Activities. Similarly for Money Transfer Service Scheme, Authorised Persons who are Indian Agents under MTSS are now required to maintain and preserve records for a period of at least five years.
RBI Circular No 149 and 150, Dated: June 25, 2014