Designated Director and Principle Officer

Designated Director and Principle Officer
a) Designated Director
Banks are required to nominate a Director on their Boards as “Designated Director”, as per the
provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (Rules), to
ensure overall compliance with the obligations under the Act and Rules. The name, designation and
address of the Designated Director is to be communicated to the Director, Financial Intelligence
Unit – India (FIU-IND).
b) Principal Officer
Banks should appoint a senior management officer to be designated as Principal Officer. Banks
should ensure that the Principal Officer is able to act independently and report directly to the senior
management or to the Board of Directors. Principal Officer shall be located at the head/corporate
office of the bank and shall be responsible for monitoring and reporting of all transactions and sharing
of information as required under the law. He will maintain close liaison with enforcement agencies,
banks and any other institution which are involved in the fight against money laundering and
combating financing of terrorism
Further, the role and responsibilities of the Principal Officer should include overseeing and ensuring
overall compliance with regulatory guidelines on KYC/AML/CFT issued from time to time and
obligations under the Prevention of Money Laundering Act, 2002, rules and regulations made
thereunder, as amended form time to time. The Principal Officer will also be responsible for timely
submission of CTR, STR and reporting of counterfeit notes and all transactions involving


receipts by non-profit organisations of value more than Rupees Ten Lakh or its equivalent in foreign
currency to FIU-IND.With a view to enabling the Principal Officer to discharge his responsibilities
effectively, the Principal Officer and other appropriate staff should have timely access to customer
identification data and other CDD information, transaction records and other relevant information