AML - Anti Money Laundering

It is conversion of money, which is illegally obtained, so as to make it appear to originate from a
legitimate source. The main objective of the Act is:
1. To prevent, combat and control money laundering.
2. To confiscate and seize the property obtained from the laundered money.
3. To deal with any other issue connected with money laundering in India.

There are three independent steps or stages in Money Laundering -- Placement, Layering and
Integration

A) Placement - physical disposal of bulk cash proceeds derived from illegal activity

B) Layering - process of separation of illicit proceeds from their source by creating complex layers of financial transactions it conceals the audit trail.

C) Integration– re-injection of laundered proceeds back to the economy

Punishment:

Whoever commits the offence of money laundering shall be punished with the rigorous
punishment for a term not less than 3 years but which may extend to 7 yrs and shall also
liable to fine, which may extend to Rs.5 lacs.

Revised policy on KYC/AML/PMLA policy Norms for furnishing proof of address have been relaxed to allow submitting only one documentary proof of address ( either current or permanent) while opening a Bank account or while undergoing periodic updation. In case the proof of address where the customer is currently residing , the bank may take a declaration of the local address. No proof is required to be submitted for such address for correspondence/ local address.