9911796707
TMI BlogAmendment to the Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money-laundering Act, 2002 and Rules framed there underX X X X Extracts X X X X X X X X Extracts X X X X ..... ligations of Securities Market Intermediaries under the Prevention of Money-laundering Act, 2002 and Rules framed there under 1. Please refer to the Master Circular reference number SEBI/HO/MIRSD/MIRSD-SEC-5/P/CIR/2023/022 dated February 03, 2023 and amendments thereto dated June 16, 2023 on the captioned subject issued by the Securities and Exchange Board of India (SEBI). 2. The Government of India has notified Prevention of Money-laundering (Maintenance of Records) (Second Amendment) Rules, 2023 , which is published in the Official Gazette on September 4, 2023 (Notification G.S.R. 652(E)). The said amendments came into force on the date of its publication i.e. with effect from September 4, 2023. 3. In view of the afore-referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... propriate to risk management; and c. adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off. 3.3. In Paragraph 11, after sub-paragraph (ii), the following proviso shall be inserted, namely:- Provided that in case of a Trust, the reporting entity shall ensure that trustees disclose their status at the time of commencement of an account based relationship. 3.4. In Paragraph 11, sub-paragraph (iii) shall be substituted with the following, namely:- Identifying beneficial ownership and control, i.e. determine which individual(s) ultimately own(s) or control(s) the client and/or the person on whose behalf a transaction is being conducted. The beneficial owner shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy of individuals; d) where no natural person is identified under (a) or (b) or (c) above, the beneficial owner is the relevant natural person who holds the position of senior managing official; e) Where the client is a trust , the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with ten per cent or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership; and f) where the client or the owner of the controlling interest is an entity listed on a stock exchange in India, or it is an entity resident in jurisdictions notified by the Central Government and listed on st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout following the CDD procedure. 3.7. In paragraph 12, in sub-paragraph (iii), clause (e) shall be substituted with the following, namely:- Politically Exposed Persons (PEPs). PEP shall have the same meaning as given in clause (db) of sub-rule (1) of rule 2 of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. The additional norms applicable to PEP as contained in the subsequent paragraph 14 of the master circular shall also be applied to the accounts of the family members or close relatives / associates of PEPs; 3.8. In paragraph 12, in sub-paragraph (iii), clause (f), the following paragraph shall be inserted at the end, namely:- The intermediary shall specifically apply EDD measures, proportionate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of potentially suspicious transactions and shall have access to and be able to report to senior management at the next reporting level or the Board of Directors. Names, designation and addresses (including email addresses) of Principal Officer including any changes therein shall also be intimated to the Office of the Director-FIU-IND. In terms of Rule 2 (f) of the PML Rules, the definition of a Principal Officer reads as under: Principal Officer means an officer designated by a registered intermediary; Provided that such officer shall be an officer at the management level. 4. This circular is being issued with the approval of the Competent Authority 5. This Circular is available at www.sebi.gov.in under the link Legal C ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
