The Reserve Bank of India directed banks and other financial institutions to ensure that cross-border and domestic wire transactions include comprehensive information about the source and beneficiary. The central bank has modified instructions in the Master Direction on Know Your Customer (KYC) linked to wire transfers and aligned them with the relevant Financial Action Task Force (FATF) suggestion.
“All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information,” according to the Master Direction’s amended guidelines.
Domestic wire transfers, if the originator is an account holder of the ordering regulated entity (RE), should also include originator and beneficiary information, as with cross-border wire transfers.
“Domestic wire transfers of Rs 50,000 and above, where the originator is not an account holder of the ordering regulating identity, shall also be accompanied by the originator and beneficiary information as indicated for cross-border wire transfers,” according to the RBI.
The financial institution that starts the wire transfer and sends the funds on behalf of the originator is referred to as the ‘Ordering RE’.
The RBI further stated that upon receiving such requests with sufficient legal requirements, REs shall make all information on wire transactions accessible to applicable law enforcement and/or prosecution agencies, as well as FIU-IND.
The most recent guidelines, however, are not intended to cover any transfer resulting from a transaction involving the purchase of goods or services using a credit card, debit card, or Prepaid Payment Instrument (PPI).
The RBI further stated that any RE acting as an intermediate in a chain of wire transfers shall ensure that all originator and beneficiary information associated with a wire transfer is kept alongside the transfer.