Public comments invited by PFRDA on the Draft guidelines of Know Your Customer/Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT), 2022

The Pension Fund Regulatory and Development Authority has invited comments on draft Guidelines in respect of Know Your Customer/Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT), 2022 (“Draft Guidelines”) by 8th December, 2022.

Key Highlights:

1. The Draft Guidelines proposes implementation of policies, procedures, internal controls and a Client Due Diligence (“CDD”) Programme that effectively serve to prevent and impede Money Laundering and Terrorist Financing by reporting entities;
2. The Draft Guidelines suggest maintenance of records, compliance with the statutory obligations, awareness among all employees regarding the Draft Guidelines and requires reporting entities to be responsible for ensuring a robust KYC/AML/CFT program by way of Guidance Notes, Standard Operating Procedures, etc.;
3. The Draft Guidelines further proposes the submission of a certificate of compliance in the prescribed format within 45 days from the end of each Financial Year;
4. The Draft Guidelines also lists down provision regrading appointment of a Designated Director and a Principal Officer to ensure overall compliance with the obligations laid down by the Prevention of Money Laundering Act and Rules, requirement of having adequate screening mechanism as an integral part of the reporting entities personnel recruitment/hiring process, requirement of conducting periodical inspections and internal audits, etc.
5. Further, the KYC Norms are laid down along with provisions relating to risk assessment and categorization, simplified and enhanced due diligence measures, reporting requirements, monitoring requirements and the process by which reporting entities must share KYC information with the Central KYC Registry (“CKYCR”).

Comments/ Feedback in this regard must be addressed through e-mail at (devesh.mittal@pfrda.org.in) or (ashish.bharati@pfrda.org.in) by 8th December, 2022 in the format given below:

Source: Pension Fund Regulatory and Development Authority