The Reserve Bank of India directed banks and other financial institutions on Thursday to ensure that cross-border and domestic wire transfers include complete information about the originator and beneficiary. The central bank has updated instructions in the Master Direction on Know Your Customer (KYC) related to wire transfers and aligned them with the relevant Financial Action Task Force (FATF) recommendation.
"All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information...," according to the Master Direction's updated instructions.
Domestic wire transfers should also include originator and beneficiary information, as with cross-border wire transfers, if the originator is an account holder of the ordering regulated entity (RE).
"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 originator and beneficiary information as indicated for cross-border wire transfers," according to the RBI.
The financial institution that initiates the wire transfer and transfers the funds on behalf of the originator is referred to as the 'Ordering RE'.
The RBI also stated that upon receiving such requests with appropriate legal provisions, REs should make all information on wire transfers available to appropriate law enforcement and/or prosecutorial authorities, as well as FIU-IND.
The most recent instructions, however, are not intended to cover any transfer resulting from a transaction involving the purchase of goods or services using a credit card, debit card, or Prepaid Payment Instrument (PPI).
The RBI also stated that any RE acting as an intermediary in a chain of wire transfers should ensure that all originator and beneficiary information associated with a wire transfer is retained with the transfer.