To tighten anti-money laundering norms, the Reserve Bank of India (RBI) has asked banks and financial institutions to maintain proper record of all receipts of over Rs 10 lakh by non-profit organisations.
The central bank also asked them to forward a report of all such transactions to the Financial Intelligence Unit under the Finance Ministry in a prescribed format every month.
"Maintain proper record of all transactions involving receipts by non-profit organisations of value more than Rs 10 lakh or its equivalent in foreign currency and and to forward a report to FIU-IND of all such transactions every month by the 15th of the succeeding month," the RBI said in a notification.
The apex bank also asked these financial entities to verify identity and address of a customer, who does not have account in them, in case he makes transactions of atleast Rs 50,000.
The banks and financial institutions have to do this even if this sum is transacted in more than one transactions that appear to be connected.
These entities will also have to verify identity and address in case a customer is internationally structuring a transaction below Rs 50,000. In this case, they should also filing a suspicious transaction report (STR) to FIU-IND.
