Financial Intelligence Unit

What is FIU Registration?

Section 12 of PMLA, 2002 and rules there under require every reporting entity to check and verify and maintain the records of the identity of all its clients including beneficial owners.

For verification and maintenance of records of the identity of clients are prescribed under Rules 9 and 10 of PMLA Rules.

Who are Reporting Entity?

FIU-IND has identified following entity to be registered under FIU-IND and providing report of transaction to following entity are as follow:

• Banking Company
• Financial Institution
• Intermediary
• Chit Fund Company
• Co-operative Bank
• Housing Finance Institution
• Non-Banking Financial Company

Verification of identity

On transaction of an amount equal to or exceeding Rs. 50,000/- whether conducted as a single transaction or several transactions that appear to be connected or any international money transfer operations

Documents for Identity of Client

• Individual

One certified copy of an officially valid document containing details of identity and address

One recent photograph and
Such other documents including in respect of nature of business and financial status of the client as may be required by the reporting entity

• Company

Certificate of Incorporation (COI)/MOA & AOA of Company
Resolution from BOD and POA granted to its managers, officers or employees to transact on its behalf and
Officially valid document in respect of managers, officers or employees holding an attorney to transact on its behalf.

• Partnership Firm

Registration Certificate
Partnership Deed
An officially valid document in respect of the person holding an attorney to transact on its behalf

• Trust

Registration Certificate
Trust Deed
An officially valid document in respect of the person holding an attorney to transact on its behalf

• UIB/BOI

Resolution of Managing body of such association or body of individuals
POA granted to him to transact on its behalf
An officially valid document in respect of the person holding an attorney to transact on its behalf
Such information as may be required by reporting entity to collectively establish the legal existence of such association or Body of Individual (BOI)

*Note: Officially valid Document means passport, driving license, PAN, Voter Identity Card as per Section 2(d) of PMLA Rules, 2005.

Suspicious Transaction means a transaction whether or not made in cash which, to a person acting in good faith-

1. Give rise to a reasonable ground of suspicion that it may involve the proceeds of crime; or
2. Appears to be made in circumstances of unusual or unjustified complexity; or
3. Appears to have no economic rationale or bonafide purpose

(As per Definition is given u/s 2(g) of PMLA Rules, 2005)

The records of the identity of clients and its beneficial owners shall be maintained for a period of 5 years after the business relationship between a client and reporting entity has ended or the account has been closed, whichever is later. [Section 12(4) of PMLA Act, 2002]

Maintenance of Records of Transaction

Transaction to be a record of are:-

• All cash transaction of the value more than Rs. 10 lakhs or its equivalent in foreign currency
• All series of cash transaction integrally connected to each other which have been valued below Rs. 10 lakhs or its equivalent in foreign currency where such series of transaction have taken place within months
• All transaction involving receipts by a non-profit organization of value more than Rs. 10 lakhs or its equivalent in foreign currency
• All cash transaction where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of valuable security or a document has taken place facilitating the transaction
• Suspicious transaction whether in cash or not
• All cross-border wire transfer of the value of more than Rs. 5 lakhs or its equivalent in foreign currency where either the origin or destination of fund is in India
• All purchase and sale by any person of immovable property valued at Rs. 50 lakhs or more that is registered by the reporting entity.

And of course, this transaction to be furnished by every reporting entity to FIU-IND on prescribed format and as per regulation there under.

Records should contain following information

Nature of transaction
Amount of transaction and currency in which it was denominated
Date on which transaction was conducted and
Parties to the transaction
Over and above of regular maintenance of records of transaction.

Such records to be maintained for a period of 10 years from the date of cessation of transaction as per Rule 6 of PMLA, 2005.

Reports to be submitted

There are 5 types of reporting format i.e. Cash Transaction Report (CTR), Suspicious Transaction Report (STR), Counterfeit Currency Report (CCR), Cross-Border Wire Transfer Report (CBWTR) and Report on sale/purchase of immovable property (IPR).

The method of filing is electronic over secure gateway.

*For NBFC: CTR for each month should be submitted to FIU-IND by 15th of the succeeding month. While filing CTR, individual transaction below Rs. 50K may not be included. Principal Officer (PO) will be responsible for timely submission of CTR and STR to FIU-IND. All branches to be consolidated and file at one report electronically. The NBFCs are required to report information relating to cash (CTR) and suspicious transaction (STR) to Director, Financial Intelligence Unit India, 6th Floor, Hotel Samrat, Chanakyapuri. New Delhi-110021. [Based on Notification No. RBI-2005-06/352 DNBS(PD). CC 68/03.10.042/2005-06 dated 5th April 2006]

How to get reporting format?

The format of reporting transaction is available in the “Downloads” section of the FIU-IND website. The same need to first generate and validate in another stage then XML file be uploaded after duly log in to the site.

Registration of Reporting Entity

It is most to know the registration is of two-person i.e. first entity itself and second is registration of principal officer. To register both the following things are required to do:-

Go to http://finnet.gov.in/ and Click on new user on the login page.
Click on register new reporting entity. Fill the basic details of reporting entity such as reporting entity name, category and details of user and submit the form.
After that, the message displayed saying the details of reporting entity have been submitted to FIU-IND which provides a reporting entity registration request number. Click on registration request number to take print out and send a copy or hard copy to FIU. Scan copy should be emailed to ctrcell@fiuindia.gov.in. Paper/hard copy may be posted to Director, FIU-India, 6th Floor, Hotel

Mandatory documents:

1. Scope of the Quality Management System (QMS) (clause 4.3)
2. Quality policy (clause 5.2)
3. Quality objectives (clause 6.2)
4. Criteria for evaluation and selection of suppliers (clause 8.4.1)

Please note that records marked with * as mentioned below, are only mandatory in cases when the relevant clause is not excluded from the scope of the QMS:

Mandatory records:

1. Monitoring and measuring equipment calibration records* (clause 7.1.5.1)
2. Records of training, skills, experience and qualifications (clause 7.2)
3. Product/service requirements review records (clause 8.2.3.2)
4. Record about design and development outputs review* (clause 8.3.2)
5. Records about design and development inputs* (clause 8.3.3)
6. Records of design and development controls* (clause 8.3.4)
7. Records of design and development outputs *(clause 8.3.5)
8. Design and development changes records* (clause 8.3.6)
9. Characteristics of product to be produced and service to be provided (clause 8.5.1)
10. Records about customer property (clause 8.5.3)
11. Production/service provision change control records (clause 8.5.6)
12. Record of conformity of product/service with acceptance criteria (clause 8.6)
13. Record of nonconforming outputs (clause 8.7.2)
14. Monitoring and measurement results (clause 9.1.1)
15. Internal audit program (clause 9.2)
16. Results of internal audits (clause 9.2)
17. Results of the management review (clause 9.3)
18. Results of corrective actions (clause 10.1)

Non-mandatory documents:

There are many non-mandatory documents that may be used for ISO 9001 implementation as the list is exhaustive. However, there is a general consensus among ISO consultants at Mumbai & various quality interpreters across the globe, that following non-mandatory documents are most commonly used:

1. Procedure for determining context of the organization and interested parties (clauses 4.1 and 4.2)
2. Procedure for addressing risks and opportunities (clause 6.1)
3. Procedure for competence, training and awareness (clauses 7.1.2, 7.2 and 7.3)
4. Procedure for equipment maintenance and measuring equipment (clause 7.1.5)
5. Procedure for document and record control (clause 7.5)
6. Sales procedure (clause 8.2)
7. Procedure for design and development (clause 8.3)
8. Procedure for production and service provision (clause 8.5)
9. Warehousing procedure (clause 8.5.4)
10. Procedure for management of non conformity and corrective actions (clauses 8.7 and 10.2)
11. Procedure for monitoring customer satisfaction (clause 9.1.2)
12. Procedure for internal audit (clause 9.2)
13. Procedure for management review (clause 9.3)

, New Delhi-110021. Envelope containing registration request should be superscripted as “New Registration Request.

On approval, The FIUREID (unique identity number of an organization registered with FIU-IND) will be communicated to the email ID provided.
The process to register the Principal Officer is as like registration of Reporting Entity but it will be enabled only after Entity registration on the FIU-IND portal.
Both registration process is just to fill up the basic credentials of Reporting The Entity and Principal Officer, no need to upload any documents.

Checklist for Registration

For Entity:

• Registration Number granted by Regulator
• Name of User, Contact Number (11 digits) & Email Id

For Principal Officer:

• Aadhar Card of Principal Officer
• Telephone Number of Officer is mandatory
• Mobile No. & Email Id (Preferably organization email-id)

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