Implementation & appointment of nodal officer for implementation of Sec 12A of WMD & UAPA

IRDAI vide ref. no. IRDAI/IID/CIR/MISC/86/4/2023 dated April 19, 2023 has issued a Circular on the procedure for implementation and appointment of nodal officer for implementation of Section 12 A of Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act), and Change of nodal officer for implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967 (UAPA).

Key highlights as mentioned under the Circular are as follows:

I. Procedure for implementation of Section 12 A of Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act):

1. Section 12A of WMD Act inter-alia prohibits financing of weapons of mass destruction and their delivery systems and also lays down the powers of Central Government to freeze, seize or attach funds or other financial assets or economic resources;

2. Central Government has assigned Director, FIU-India, Department of Revenue, Ministry of Finance, as the authority to exercise powers under Section 12A of the Act and shall be referred as the Central Nodal Officer (CNO) for the purpose of this order.

3. The CNO shall undertake the following activities:

• forward the updated list of all Nodal Officers (i.e. State /UT wise & MHA division) to all Reporting Entities (RE);
• maintain the list of designated individuals and entities (designated list) on the portal of FIU- India
• make available designated list for all Nodal officers, the State Nodal Officers, and to the Registrars

4. The concerned Financial Regulators shall make available the updated designated list and RE shall maintain the same;

5. The RE including Insurance Companies shall:

i. Verify, if the particulars of the entities/individual, party to the financial transactions, match with the particulars of designated list

ii. Run a check, on the given parameters, at the time of establishing a relation with a customer and on a periodic basis to verify whether individuals and entities in the designated list are holding any funds, financial assets or economic resources or related services, in the form of bank accounts, stocks, Insurance policies etc.

iii. In case there is a positive match or if there are reasons to believe beyond doubt that funds or asset held by a customer would fall under the purview of Section 12 of WMD Act, RE shall not carry out such transaction and immediately inform CNO, to State Nodal Officer, where the account/transaction is held, and to their respective Regulator with complete details, without delay, followed by filing of a Suspicious Transaction Report to FIU-IND;

6. Procedure for freezing and unfreezing of funds, financial assets or economic resources or related services of individuals/entities inadvertently affected by the freezing mechanism upon verification has also been laid down

II. Appointment of Nodal Officer :

“Ms Nimisha Srivastava, General Manager, Insurance Inclusion and Development Department” is appointed as nodal officer for implementation of the provisions of Section 12 A of WMD Act and Section 51A of UAPA in the insurance sector.

Actionable for the Industry:

1. To maintain updated designated list at all times;

2. To run a check and/or verify against the updated designated list at the time of establishing a relation with a customer and on a periodic basis for any positive match;

3. In case of a positive match, inform CNO, to State Nodal Officer and IRDAI followed by filing of a Suspicious Transaction Report to FIU-IND.

Source category: IRDAI

Attachments

• /2023/189_Circular_on_WMD_UAPA_nodal_officer.pdf