PMLA

Question 1

What is a reporting entity

Answer 1

1. Bank
2. Financial Institution
3. Intermediary (incld. stock brokers, trustee, underwriter, portfolio manager, stock exchange, intermediary under pension fund)

Question 2

Duties of reporting entity

Answer 2

1,Verification of identity of client & beneficial owner (Aadhar, passport, etc)

2. Maintenance of record of all transaction
3. Confidentiality
4. Furnish director with info
5. Enhanced due dilligence

Question 3

For how long verification details to be preserved

Answer 3

5 years from the date business relationship ended or account was closed whichever is later

Question 4

for how long transaction records to be preserved

Answer 4

5 years from sate of transaction

Question 5

Maintenance of records

Answer 5

1. Nature and value of all transactions
2. Identity proof of client and beneficial owners
   - to reconsturct individual transactions
   - ATTEMPTED and executed transactions

Question 6

enhanced due dilligence reqd. prior to commencement of specified transaction

Answer 6

1. Verify aadhar identity of client
2. Examine ownership , financial position , sources of funds
3. Purpose behind transaction
4. Nature of relationship btwn transacting parties
5. Suspicious transactions - increase future monitoring of relationship and transactions

Question 7

specified transaction

Answer 7

1. cash, exceeding such amount
2. foreign exchange, exceeding such amount
3. high value imports or remittances
4. High risk of ML or terror financing