Dear friends, Lets understand who are benefecial owners in an account . The menace of Money laundering is showing dangerous proportion and its magnitude in India was to the tune of 95 billion dollars in the year 2012-13. In recent past, incidents of laundering huge amount of money by remitting foreign currency for purported Import of goods under Liberalized Remittance Schemes of the RBI through newly opened accounts have come to the notice at several Banks. Deficiencies in observance of FEMA Guidelines, proper follow up of remittance and desired due diligence in respect of the accounts used for remittance has resulted to this undesirable situation. As most of the accounts used in these cases of Money laundering are accounts opened in the name of Proprietorship, Partnership or Private Ltd. Companies, the enhanced due diligence (EDD) on beneficial owners of account was a requisite . As these accounts are perceived as “High Risk” accounts, FATF, FIU-IND and RBI have desired tha...
New risk areas in banking and mitigation measures to ensure safe banking