Ministry of Finance vide notification bearing reference number: G.S.R. 745(E) dated October 17, 2023 amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
Highlights of the amendments are as follows:
1. Client Due Diligence (CDD) to be carried out using reliable and independent sources of identification. While undertaking CDD of the customer, reasonable steps to be taken to determine the nature of the customer’s business, its ownership and control.
2. Financial groups to implement group-wide programmes against ML/TF, which shall include:
· policies and procedures for sharing information required for the purposes of CDD and ML/TF risk management. Confidentiality requirement does not inhibit information sharing among entities in the group.
· adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off
3. The timelines to report Suspicious Transactions (STR) within 7 working days of its identification have been omitted. The Principal Officer is required to report STR promptly to Director, FIU-IND and same shall be kept confidential.
4. In cases, where reliance is done on the KYC conducted by the third parties, the records/information of CDD carried out is required to be obtained immediately from such third party or from the Central KYC Records Registry.
5. The officially valid documents of the protector of trust, if any is also required to be collected in case of trusts.
6. Information or data collected under CDD should be kept up to date and relevant, specifically for high risk customers.
Source category: Others
Attachments
- /2023/293_Prevention_of_Money-laundering_(Maintenance_of_Records)_Third_Amendment_Rules,_2023.pdf
- /2023/293_Comparative_analysis_1.pdf
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