BANKING AFFAIRS

Detailed explanation-1: -KYC stands for Know Your Customers. Money laundering is one of the major challenges faced by banking companies. Know Your Customers norms are launched by the banks to prevent money laundering in general. KYC verifies the identity and other details of the customer.

Detailed explanation-2: -Security Breaches With a series of high-profile breaches over the past few years, security is one of the leading banking industry challenges, as well as a major concern for bank and credit union customers.

Detailed explanation-3: -Government of India, Ministry of Finance, Department of Revenue, vide its notification dated July 1, 2005 in the Gazette of India, has notified the Rules under the Prevention of Money Laundering Act (PMLA), 2002. In terms of the said Rules, the provisions of PMLA, 2002 came into effect from July 1, 2005.

Detailed explanation-4: –Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.