RBI updates Master Direction on KYC; Instructions on Wire Transfer

New Delhi: The Reserve Bank of India (RBI) has recently updated the instructions in the Master Direction on Know Your Customer (KYC) related to wire transfers. This move is aimed at strengthening the framework for anti-money laundering (AML) and combating the financing of terrorism (CFT). 

"Domestic wire transfers of Rs 50,000 and above, where the originator is not an account holder of the ordering RE, shall also be accompanied by the originator and beneficiary information as indicated for cross-border wire transfers," the RBI said.

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The new guidelines require banks to obtain additional information from customers for wire transfers, including the name and address of the beneficiary and the purpose of the transaction. Banks are also required to monitor transactions and report any suspicious activity to the Financial Intelligence Unit (FIU). 

 

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The RBI's update is a welcome move in the fight against financial crimes and sends a strong message to those who attempt to use the financial system for illegal activities.

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