BSE asks brokers to submit monthly statement on suspicious transactions

Our Bureau Mumbai | Updated on January 24, 2018

The Bombay Stock Exchange (BSE Ltd) has asked its brokers to submit a monthly statement on the number of Suspicious Transaction Reports (STRs) filed by them with Financial Intelligence Unit India (FIU-IND) to the Exchange.

A BSE circular said that the process of submission of the said details shall be intimated to brokers shortly.

FIU IND is the agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions. It is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing the global efforts against money laundering and related crimes.

Suspicious transaction is one which gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence or a transaction which appears to be made in circumstances of unusual or unjustified complexity. Transactions with no economic rationale or bonafide purpose or those that give rise to a reasonable ground of suspicion that it may involve terror financing also fall into this category.

The broad categories of reason for suspecting a transaction arise due to identity of client (false documents, unverifiable documents, non-face to face client, doubts over real beneficiary and accounts opened with names very close to other established business entities); suspicious background such a link with criminals, multiple accounts with no rationale and unexplained transfers, unusual/sudden activity in accounts, complex transactions, besides transaction values that show inconsistency in the payment usual pattern.

Published on July 11, 2015

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