Prevention of Money laundering (Maintenance of Records) Amendment Rules_ 2023

Ministry of Finance vide a notification Ref no. S.O. 1074(E) dated March 7, 2023 has amended the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2005.

The key highlights of the Notification are as follows:

• The term “Politically Exposed Person” (PEP) and “Non-Profit Organisation” (NPO) has been defined in the Rules.
• The term “Group” has been defined in the Rules and reporting entities are required to implement group wide policies for the purpose of discharging its duties under the Prevention of Money Laundering Act, 2002 (PMLA)
• 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):
• In case of 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.
• In case of Partnership-
• the names of all the partners and
• Address of the registered office, and the principal place of its business, if it is different.
• In case of 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”

Source category: Others

Attachments

• /2023/162_2023-03-07_Prevention_of_Money_laundering_(Maintenance_of_Records).pdf