Cash Transactions of Rs 2 million and Above are directed by FMU to reporting entities

The Financial Monitoring Unit (FMU) has required the reporting entities to report the cash transactions of Rs. 2 million or greater via the currency transaction reports, including financial and real estate agents, jewelers, lawyers/accountants, trusts, and suppliers of business services.

For reporting entities, including designated non-financial companies and professions (DNFBPs), the FMU has published instructions for filing the Currency Transaction Report, including builders and developers.

The FMU explained that by reporting in the Official Gazette, the Currency Transaction Report or CTR means informing cash transactions in excess specified in the National Executive Committee. The currency reporting level is 2 million Rs or higher. Reporting entities are only obliged to report cash transactions as CTRs meet the notified threshold.

According to FMU, the FMU defines how the reporting entities may submit Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) in compliance with paragraph 7 of the Anti-Money Laundering Act, 2010. In this respect, FMU has successfully implemented an automated reporting system, i.e., goAML, and from 01 January 2020, all reporting entities have electronically submitted CTRs using the goAML application.

Detailed guidelines are issued to reporting institutions to simplify the reporting process and improve the quality of CTR reporting on goAML. All reporting entities must verify that these rules are followed, as FMU stated.

For an information report on quality financial intelligence, the Currency Transaction Reports (CTRs) filed by reporting entities should contain complete, accurate, and current information (REs). These guidelines are intended by directing the REs about the reporting of CTRs, to increase the quality of CTRs reported to FMU. The rules for financial institutions, certain non-financial businesses, and professions are provided under section 7 of the Anti-Money Laundering Act 2010, applicable to reporting entities (REs) (DNFBPs).

CTRs have been divided into two types to simplify CTR reporting:

  • Transaction Currency Report – CTR (To be reported by all Financial Institutions and DNFBPs involving a cash transaction of Rs. 2 million or above)
  • Report-aggregate of currency transaction – CTRL-A (For transactions with several currencies totaling Rs. 2 million or more, should be recorded by Reselling only).

Only cash transactions that meet the Rs.2 million and above level should be submitted as CTR. According to FMU, reporting entities are not to report transactions of account to account, transactions to entities, and transactions of entity to account to CTR in gold.

While a multiple signatories account is reported during a cash transaction, all signature details and the necessary information must be provided, noted FMU.

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