Mumbai: The Reserve Bank on Thursday directed banks and other financial institutions to ensure that cross-border as well as domestic wire transfers contain complete originator and beneficiary details. The central bank has updated instructions in the Master Direction on Know Your Customer (KYC) relating to wire transfers and also aligned it with the relevant recommendation of the Financial Action Task Force (FATF).
According to the updated instructions in the Master Direction, “all cross-border wire transfers shall be accompanied by accurate, complete and meaningful originator and beneficiary information.” In addition, domestic wire transfers, where the originator is the account holder of the ordering regulated entity (RE), must be accompanied by originator and beneficiary information, as is the case with cross-border wire transfers.
“Domestic wire transfers of Rs 50,000 and above, where the originator is not the account holder of the ordering RE, should also contain originator and beneficiary information, as indicated for cross-border wire transfers,” RBI said. ” ‘Ordering RE’ refers to the financial institution that initiates the wire transfer and transfers funds on behalf of the originator.
RBI further stated that REs should provide all information on wire transfers to the appropriate law enforcement and/or prosecution authorities as well as FIU-IND on receipt of such requests, in line with relevant legal provisions. However, the latest instructions are not intended to cover any transfer that is made for purchase of goods or services using a credit card, debit card, or prepaid payment instrument (PPI).
RBI further said that REs processing the intermediary element of a chain of wire transfers should ensure that all originator and beneficiary information accompanying the wire transfer is maintained along with the transfer.
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