Updated By: LatestGKGS Desk
PMLA makes original IDs with photocopies mandatory for transactions above INR 50,000
The Prevention of Money Laundering Act (PMLA), Bank to Now match original IDs with photocopies, cash transactions above 50000
The Government has made it the mandatory rule for banks and financial institutions to check the original identification documents of individual dealing in cash above the prescribed threshold of fifty thousand rupees, to tackle the use of forged or fake copies.
The Notification was issued by the Department of Revenue in the Finance Ministry by making an amendment to the prevention of Money-laundering (Maintenance of Records) Rules.
Objective of the mandatory rule for banks and financial institutions
The notification under the mandatory rule required to produce Biometric Identification number Aadhaar and other official documents to the reporting offices for opening a bank account along with for any financial transaction of Rs 50, 000 and above.
It also mentions to produce the same document for all cash dealing of more than Rs 10 lakh or it’s corresponding in foreign currency, cash transactions where forged or counterfeit currency notes have been used and all suspicious transactions.
All foreign transfers of more than Rs 5 lakh in foreign currency and sale and purchase of immovable property valued at Rs 50 lakh or more also fall under this new rules
