Prevention of Money Laundering Act and Financial Institutions

    Prevention of Money Laundering Act and Financial Institutions – Under the Act, banking companies and Financial Institutions are required to maintain a record of all transactions (nature and value) and furnish information of such transaction to the designated authority with in the prescribed time frame. They need to verify and maintain records about the identity of all of its clients as prescribed by CG rules. The banks will not liable to civil proceedings against furnishing such information.