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Anti Money Laundering & CombatingFinancing of Terrorism ( CFT )

ICICI Securities Ltd.

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What is Money Laundering ?

Activity connected with the proceeds of crime &

projecting it as untainted property

Involves disguising the true origin of illegitimate funds

Converts illegally obtained income into other forms to

appear it as a legitimate income

Mode to insert dirty money in the financial system.

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Activities generating illegal money

Kidnapping

DrugTrafficking

Corruption

Forgery

Smuggling

Extortion

GamblingFraud

Tax Evasion

Criminal/Illegal

Activity

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Consequences of Money Laundering

Finances terrorism Encourages crime

Endangers society at large

Weakening of macro economic factors of country

Affecting the integrity of the financial system

Reduction of government control on economy

Weakening of law & order

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Stages of Money Laundering Placement : Initial stage in which cash proceeds from

criminal activities is placed in financial institutions.

Layering : Process of conducting a complex series offinancial transactions, with the purpose of hiding the

origin of the money from the criminal activities.

Integration : Final stage in the re-injection of thelaundered proceeds back into the economy in such a

way that they re-enter the financial system as normalbusiness funds.

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Objectives of AML / CFT Programme Ensuring that financial institutions are not vulnerable to

infiltration or abuse by organized crime groups

Building capacity to fight terrorism and trace terrorist

money

Meeting binding international obligations and avoiding

the risk of sanctions or other actions by the international

community

Avoid becoming heaven for criminals

Securing a more transparent and stable financial systemthat is attractive to foreign investors

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Obligation of the Customer Provide complete details during KYC process viz.,

address proof, identity proof, PAN, Income details,etc.

Periodically update contact details.

Periodically update financial details. To submit relevant documents as requested from time

to time

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Thank You