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

Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023

17-Oct-2023 | G.S.R. 745(E)

Ministry of Finance has issued a Notification amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, with the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023, effective from October 17, 2023.


The key highlights of the amendment are:-

1. In Rule 3A '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 and such programmes shall include adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off

2. In Rule 8(2) The principal officer of a reporting entity shall, on being satisfied that the transaction is suspicious, furnish the information promptly in writing by fax or by electronic mail to the Director. Previously it was required to be furnished not later than seven working days on being satisfied that the transaction is suspicious.

3. Insertion of sub-rule 8 (6) Every reporting entity, its Directors, officers, and all employees shall ensure that the fact of maintenance of records referred to in rule 3 and furnishing of information to the Director is kept confidential

4. In Rule 9 (1) Every reporting entity shall, at the time of commencement of an account-based relationship or while carrying out occasional transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or any international money transfer operations, ?
a) 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 etc.

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