Each registered intermediary should adopt written procedures to implement the anti-money laundering provisions as envisaged under the Anti Money Laundering Act, 2002. Explain the obligations of intermediaries under preve

Section 12 of the Prevention of Money Laundering Act, 2002 lays down following obligations on an intermediary: Every banking company, financial institution and intermediary shall – (A) maintain a record of all transactions, and where such series of transactions take place within a month; (B) furnish information of transactions referred to in clause (a) to the Director within such time as may be prescribed; (C) verify and maintain the records of the identity of all its clients, in such a manner as may be prescribed. However, where the principal officer of an Intermediary or financial institution or intermediary, as the case may has reason to believe that a single transaction or series of transactions integrally connected to each other have been valued below the prescribed limit so as to defeat the provisions of this section, such officer shall furnish information in respect of such transactions to the Director within the prescribed time. The records shall be maintained for a period of ten years from the date of cessation of the transactions between the clients of the banking company or financial institution or intermediary, as the case may be. Every intermediary is required to furnish details of the following cash transactions: (A) All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency. (B) All series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month. Every intermediary is required to furnish details of suspicious transactions whether or not made in cash. Suspicious transaction means a transaction whether or not made in cash which, to a person acting in good faith (a) gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime; or (b) appears to be made in circumstances of unusual or unjustified complexity; or (c) appears to have no economic rationale or bona fide purpose.