The International Financial Services Centres Authority (IFSCA) vide circular ref no. 939/IFSCA/FATF-C/PMLA/2023-24 has issued guidance note on corresponding changes in the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 (AML/CFT Guidelines) basis the amendments in Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2005 as notified by the Ministry of Finance vide notifications Ref no. S.O. 1074(E) dated March 7, 2023, S.O. 2135(E) dated May 3, 2023 and S.O. 2135(E) dated May 9, 2023.
The brief summary of corresponding changes incorporated in the IFSCA (AML/CFT Guidelines) is detailed as under:
- The definition of term “Non-Profit Organisation” (NPO) and ” Group” have been incorporated in the Guidelines.
- Controlling ownership limit for determination of Beneficial Ownership in case of Company and Trust has been revised from 25% & 15% to 10% & 10%, respectively.
- Reporting entities are required to collect following additional details/documents from a customer (Company/ Partnership Firm/Trust):
Type of Reporting entity
Additional details/documents to be collected
Company
- the names of the relevant persons holding senior management position; and
- Proof of address for the registered office and the principal place of its business, if it is different.
Partnership
- the names of all the partners and
- Address of the registered office, and the principal place of its business, if it is different
Trust
- the names of the beneficiaries, trustees, settlor and authors of the trust and the address of the registered office of the trust; and
- list of trustees and documents as are required for individuals to discharge role as trustee and authorised to transact on behalf of the trust.
- Banking Company, Financial Institutions or Intermediaries shall register the Client/ Customer (being a NPO), on the DARPAN portal of NITI AAYOG ( https://ngodarpan.gov.in/index.php/home ), if not already registered and maintain such registration records for a period of at least 5 years, after the business relationship between a client and a reporting entity has ended or the account has been closed, whichever is later.
- Client shall update to the reporting entity about the changes in earlier submitted KYC /CDD documents, if any within the 30 days of such change, for further updation in the records of the Reporting Entity.
- Reporting Entity shall also verify the identity and authorization of the Client/ Customer who purports to act on behalf of juridical person or individual or trust”
- Further activities carried on by Chartered Accountants, Company secretaries and Cost & Works accountants have also been brought within the ambit of the Guidelines.
Source category: IFSC Insurance Office
Attachments
- /2023/207_Guidance_Note_on_changes_in_IFSCA_AML_Guideliens.pdf
- /2023/207_Summary_of_changes_incorporated_in_the_IFSCA_AML_Guidelines.pdf
Comments are closed