Ministry of Finance has notified the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023 with a view to further amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
Key Highlights:
- Every reporting entity, which is part of a group, shall implement group-wide programmes against money laundering and terror financing, including group-wide policies for sharing information required for the purposes of client due diligence and money laundering and terror finance risk management. Such programmes shall include adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off.
- The time limit for furnishing of information by the principal officer of a reporting entity, in writing or by fax or by electronic mail, to the Director in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3, which he believes to be suspicious has been done away with.
- Every reporting entity, its Directors, officers, and all employees must ensure that the fact of maintenance of records of transactions and the furnishing of such information to the Director is kept confidential.
- Every reporting entity must, at the time of commencement of an account-based relationship or while carrying out occasional transaction of an amount equal to or exceeding Rs. 50,000, whether conducted as a single transaction or several transactions that appear to be connected, or any international money transfer operations, –
-
- Identify its clients, verify their identity using reliable and independent sources of identification, obtain information on the purpose and intended nature of the business relationship, where applicable.
- Take reasonable steps to understand the nature of the customer’s business, and its ownership and control;
- Determine whether a client is acting on behalf of a beneficial owner, and identify the beneficial owner and take all steps to verify the identity of the beneficial owner, using reliable and independent sources of identification.
A Copy of the Notification has been linked below for your ease of reference.
Source: Ministry of Finance
