TMI BlogInsertion of new section 12AA.X X X X Extracts X X X X X X X X Extracts X X X X ..... rces of funds of the client, in such manner as may be prescribed; (c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties. (2) Where the client fails to fulfil the conditions laid down under sub-section (1), the reporting entity shall not allow the specified transaction to be carried out. (3) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the enhanced due diligence measures under sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity. Explanation .- For the purposes of this section, specified transaction means- (a) any withdrawal or deposit in cash, exceeding such amount; (b) any transaction in foreign exchange, exceeding such amount; (c) any transaction in any high value imports or remittances; (d) such other transaction or class of transactions, in the interest or where there is a high risk of money-laundering or terrorist financing, as may be prescribed. . (27) Thus, the amended provision will be: 189. After section 12A of the prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed. (4) The information obtained while applying the enhanced due diligence measures under sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity. Explanation .- For the purposes of this section, specified transaction means- (a) any withdrawal or deposit in cash, exceeding such amount; (b) any transaction in foreign exchange, exceeding such amount; (c) any transaction in any hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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