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The International Financial Services Centres Authority issues guidance for regulated entities on amendments to the Prevention of Money-laundering Rules. Regulated entities must review the guidance regarding management-level officers, partner identification thresholds, trust disclosures, and record analysis requirements. The amendments take effect from September 4, 2023. All other provisions in the principal guidelines remain unchanged.
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Ask about this AML/CFT circular
[Image omitted. See the official document.]
CIRCULAR
F. No. 939/IFSCA/FATF-C/PMLA/2023-24/02
8th September 2023
To
The Designated Directors/ Principal Officers All Regulated Entities GIFT-IFSC
Sub: Guidance to the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.
Sir/Madam,
A. Reference is drawn to the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 (hereinafter referred as ‘Guidelines’) issued vide notification IFSCA/2022-23/GN/GL001 dated October 28, 2022, by the International Financial Services Centres Authority (hereinafter referred as ‘Authority’), to all Regulated Entities licensed, recognised, registered, or authorised by the Authority.
B. Reference is also drawn to Rule 9(14) of Prevention of Money- Laundering (Maintenance of Records) Rules, 2005 and Section 12 of the International Financial Services Centres Authority Act, 2019.
C. Further vide Gazette notification G.S.R. 625(E) dated 4th September 2023, amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred as ‘Rule’), were notified.
For the purpose of clarity for Regulated Entities the following guidance is being issued with respect to the above stated Gazette Notification G.S.R. 625(E) dated 4th September 2023:
| S. No | Amendment | Guidance |
|---|---|---|
| 1. | In the principal rule, in rule 2, after clause (f) the following proviso shall be inserted namely:- “Provided that such officer shall be an officer at the management level | Refer to Clause 8.2 (a) (c) & (f) of the Guidelines |
| 2. | In the principal rule, in rule 9;- (A) in sub-rule (3), in clause (b);- (a) for the word “fifteen” the word “ten” shall be substituted; (b) after the word “partnership”, the words “or who exercises control through other means” shall be inserted; (c) after clause (b), the following Explanation shall be inserted, namely: - “Explanation - For the purpose of this clause, “Control” shall include the right to control the management or policy decision;” | Applicable and effective from September 04, 2023 |
| 3. | after sub-rule (10), 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 or when carrying out transactions as specified in clause (b) of sub-rule (1) rule 9.” | Applicable and effective from September 04, 2023 |
| 4. | (iii) In the principal rule, in rule 10, in sub-rule (3), in the Explanation, after the word “correspondence”, the words “and result of any analysis undertaken under rule 3 and rule 9” shall be inserted. | Applicable and effective from September 04, 2023 |
D. All other provisions specified in the Guidelines and circulars issued thereunder shall remain unchanged.
E. Copy of the circular is available on the IFSCA website at https://ifsca.gov.in/Legal/Index/TCce8MyOmco= .
Ramachander S.S.R. Eranki, Head, AML & CFT Division, ramachander.essr@ifsca.gov.in
