RBI mandates complete information for money transfers to curb money laundering

The Reserve Bank of India (RBI) has issued new instructions to all banks and financial institutions in the country to ensure that all wire transfers, whether domestic or international, contain complete information about the originator and beneficiary.

The move is aimed at preventing wire transfers from being used as a channel for money laundering and financing terrorism. The updated instructions are part of the Master Direction on Know Your Customer (KYC) and are aligned with the recommendations of the Financial Action Task Force (FATF).

As per the updated instructions, all cross-border wire transfers must be accompanied by accurate, complete, and meaningful originator and beneficiary information. This information must be available to appropriate law enforcement and prosecutorial authorities, as well as the Financial Intelligence Unit – India (FIU-IND) on receiving such requests with appropriate legal provisions.

The RBI has also mandated that all domestic wire transfers, where the originator is an account holder of the ordering regulated entity, must contain originator and beneficiary information. Domestic wire transfers of ₹50,000 and above, where the originator is not an account holder of the ordering RE, shall also be accompanied by originator and beneficiary information as indicated for cross-border wire transfers.