A Visual Guide to Suspicious Transactions under PMLA, 2002

The Prevention of Money Laundering Act 2002 (PMLA) mandates regulated entities to implement appropriate measures to identify and report suspicious transactions to the Financial Intelligence of India (FIU-IND).

The AML regulations define the phrase ‘suspicious transaction’ as any transaction involving proceeds of crime or a transaction that is unjustifiably complex or has no business rationale or the transition suspected to be related to terrorism financing.

Suppose a transaction is determined to be suspicious. In that case, the Principal Officer of the entity must report it to the Financial Intelligence Unit of India, irrespective of the amount involved or whether the transaction was executed in cash or otherwise.

Once the activity or transaction is identified as suspicious, the same must be promptly reported to FIU-IND by filing a Suspicious Transaction Report (STR).

An insightful visual guide highlights the salient element of Suspicious Transactions under PMLA that every regulated entity must know.

NIYEAHMA Consultants LLP is a global AML consultancy service provider, assisting regulated entities in India around AML compliance with division – AML India. AML India supports the regulated entities in India to comply with provisions of PMLA, starting from developing tailor-made AML compliance framework and imparting AML training on effective implementation of the AML policies and procedures, including timely reporting of the identified suspicious transactions to the FIU-IND.