KYC Norms/AML Standards/Combating Financing of Terrorism - Obligation of Payment System Operators

KYC Norms/AML Standards/Combating Financing of Terrorism - Obligation of Payment System Operators

 Reserve Bank of India, Department of  Payments and Settlement Systems, has issued a Notification stating that all the Payment System Operators have been brought under the purview of PML2A, 2002, in  terms of Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009.

The complete Notification i.e RBI/2009-10/269 DPSS.CO.AD.No./1320/02.27.005/2009-10, dt. December 22, 2009, can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5432&Mode=0

Basically the Payment System Operators   will have to submit 2 kinds of Reports. The Notification clearly states that the rules will also apply to all the agents and sub-agents of the Payment System Operators in India and it will be the sole responsibility of Payment System Operators, to ensure that their agents and sub-agents also adhere to these guidelines.

I personally feel that the above notification has been issued at an early stage, when a large number of entities are trying to become Payment System Operators in India.

This Notification will enable the prospective Payment System Operators, to reassess their business plans, and ensure an error-free rollout.