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Corporate Laws Central Ministry of Finance Prevention of Money-laundering Act, 2002

Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) for Real Estate Agents

17-Feb-2023 | DGA/Tech/Mise/26/2022-TECH-O/o

The Directorate General of Indirect Taxes & Customs has issued Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) - obligations for Real Estate Agents under the Prevention of Money Laundering Act, 2002, effective from 17th April 2023.
The following are the provision under the guidelines: -
i. These guidelines also set out the steps that a Real Estate Agent shall implement to discourage and to identify any money laundering or terrorist financing activities. These guidelines prescribe procedures and obligations to be followed by the reporting entities to ensure compliance with Anti Money Laundering and Countering the Financing of Terrorism (AML and CFT) guidelines.
ii. The purpose of these guidelines is to explain the risk-based approach, outline the core principles involved in applying the same, and indicate best practices in the design and implementation of an effective risk-based approach.
iii. The purpose of these guidelines is also to establish a reporting mechanism with the real estate agents that will help in combating money laundering and terrorist financing.
iv. Every real estate agent is required to have an AML and CFT program in place in order to discharge its statutory responsibility to detect possible attempts of money laundering and financing of terrorism.

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