Citizens' Issues
Centralised KYC registry can happen after UCIC issuance: RBI

Banks have also been advised by the government to issue unique customer identification code to individual customers for facilitating the formation of a centralised KYC registry

 
Mumbai: Setting up of a centralised know your customer (KYC) registry for the entire financial sector will be possible only after implementation of the unique customer identification code (UCIC), reports PTI quoting Reserve Bank of India (RBI) Executive Director G Padmanabhan.
 
"Once the UCIC is implemented across banks and financial institutions (FIs), it would be feasible to move towards a centralised KYC registry, which will eliminate duplication of efforts and refine the KYC/AML (anti-money laundering)/CFT(combating of financial terrorism) verifications across the financial system," he said addressing a banking event.
 
Earlier, the government had formed a working group to suggest ways to introduce unique identifiers for customers across different banks and financial institutions to set up a centralised KYC registry.
 
Banks have also been advised by the government to issue UCIC to individual customers for facilitating the formation of a centralised KYC registry.
 
Markets regulator SEBI is also advocating a one-time KYC requirement across the financial services sector.
 
The RBI official further said the Aadhaar number will complement the efforts in this direction as it has the potential as an authentication tool in financial transactions.
 

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Black money: Swiss bank accounts of 'City Limousine' owner frozen

Two Swiss accounts of Sayed Mohammed Masood and his business firms, holding $1.25 million, have been attached under the Prevention of Money Laundering Act. Masood is the chairman of City Limousine, a ponzi scheme that cheated thousands of investors across the country

 
Mumbai: In the first instance of an Indian agency getting access to Swiss bank accounts in its black money probe, the Enforcement Directorate (ED) has frozen about Rs6 crore of stashed funds of a Mumbai-based businessman in an alleged money laundering case, reports PTI.
 
The agency, which approached Swiss authorities some time back in connection with the probe, received a shot in the arm when the banking and enforcement authorities there agreed that the money stashed in the accounts was prima facie "proceeds of crime" and it was important for India to get access and control of these accounts.
 
The case pertains to an alleged contravention of money laundering laws by Sayed Mohammed Masood, Chairman of 'City Limousine', whom the agency is probing for floating illegal ponzi (fraud investment plans) schemes by promising extraordinary returns which were not honoured.
 
"Two Swiss accounts in the name of Masood and his business firms, holding $1.25 million, have been attached under the Prevention of Money Laundering Act," investigators of the case said.
 
The ED attachment ensures that these properties cannot be used by the accused and he cannot take any benefits from these assets, and such an order can be challenged by the accused at the adjudicating authority of the PMLA.
 
The Mumbai unit of the agency, has said in its request to Swiss authorities, that it is probing "the City group and its Chairman Sayed Mohamed Masood for money laundering".
 
"By floating ponzi schemes offering astronomically high returns, M/s City Limousines (India) Ltd, M/s City Realcom Ltd, its Chairman and other directors of the companies have cheated thousands of investors across the country of funds to the tune of hundreds of crores," it said.
 
The Enforcement Directorate enforces the PMLA in the country and is the lead agency to probe black money cases, apart from the Income Tax department. 
 
The ED further stated that the "investigations have uncovered huge money laundering in India and abroad.
 
"During the course of investigations, ED has issued 14 attachment orders attaching movable and immovable properties in India with a market value of over Rs130 crore in the names of City group of companies, Sayed Mohamed Masood, Mrs Chand Masood Sayed (his wife), Jabeen Masood Sayed (daughter) and Jibran Masood Sayed (son) and other directors," it said.
 
The adjudicating authority has confirmed that all the attachment orders and the agency is in the process of taking over these properties, the agency said.
 
India has been undertaking various measures to get banking and other investments details of those individuals who have illegally stashed funds abroad.
 

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Internet-oriented companies will play major role in banking: Gartner

According to Gartner, digital mega-companies will alter and shape the market by helping it develop, feeding the fires of change by making customers better informed and occasionally catalytic forays into the market with niche financial services offerings

 
Bangalore: Internet-oriented new era companies will play a considerable role in shaping the banking industry of the future, reports PTI quoting Gartner.
 
However, the new companies will play a considerable role in shaping the banking industry of the future.
 
Gartner analysts examined the future of banks during Gartner Symposium/ITxpo in Bangalore.
 
"The evolution of the Internet continues to raise questions about the continued viability of brick and mortar establishments in retailing and financial services," Gartner fellow Vice-President David Furlonger said.
 
Increasingly, Internet-oriented mega-companies are seen as the commercial enterprises of the future, he said adding as far as retail banking is concerned, it would be like "trying to hammer a square peg into a round hole. This just does not fit".
 
Furlonger said digital mega-companies have many things in their favour. "They are masters of data management and analytics. To all intents and purposes they define agility, both from a technology and a business model point of view."
 
He said digital mega-companies will alter and shape the market by helping it develop, feeding the fires of change by making customers better informed and occasionally catalytic forays into the market with niche financial services offerings.
 
"For many existing financial services institutions, mapping out the path to the future is proving extremely difficult and challenging. Traditional models no longer apply to many of their customers or markets.
 
Gartner analysts are examining the key issues affecting Indian IT industry at Gartner Symposium/ITxpo.
 

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