13 Dec 2016
INDIA: Direct Electronic Transmission of Customs Documentation Designed to Scupper Money Laundering
Physical copies of customs clearance documents will no longer be accepted by banks as proof of import prior to funds being transferred abroad. Instead, shipment documentation will now be electronically transferred directly from the customs department to the relevant bank. This move is designed to bring an end to the current practice of the same documentation frequently being serially submitted to different banks as part of a money laundering operation.
The new requirement has been introduced with immediate effect and forms part of the Indian government’s ongoing commitment to countering corruption throughout the country. For further information, see: INDIA: High Value Notes No Longer Legal Tender in Crackdown on Corruption and Tax Evasion.