Prevention of Money-laundering (Maintenance of Records)

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

S.O. 1074(E).— In exercise of the powers conferred by section 73 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, namely: —

1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2023.
   (2) They shall come into force on the date of their publication in the Official Gazette.
   
2. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred to as the principal rules), in rule 2, in sub-rule (1) –
   (i) after clause (cb), the following clause shall be inserted, namely:
   “(cba) “group” shall have the same meaning assigned to it in clause (e) of sub-section (9) of section
   286 of the Income-tax Act,1961 (43 of 1961);
   
   (ii) existing clause (cba) shall be re-numbered as clause (cbb);
   
   (iii) for clause (cf), the following clause shall be substituted, namely:-
   “(cf) “Non-profit organization” means any entity or organisation, constituted for religious or charitable purposes referred to in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a Company registered under the section 8 of the Companies Act, 2013 (18 of 2013);”
   
   (iv) after clause (da) the following clause shall be inserted, namely: –
   “(db) “Politically Exposed Persons” (PEPs) are individuals who have been entrusted with prominent public functions by a foreign country, including the heads of States or Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials;”.
   
3. In the principal rules, after rule 3, the following rule shall be inserted, namely: –
   
   “(3A) Implementation of policies by groups. – Groups are required to implement group-wide policies for the purpose of discharging obligations under the provisions of Chapter IV of the Prevention of Money-laundering Act, 2002 (15 of 2003).”.
   
4. In the principal rules, in rule 9, –
   
   (i) in sub-rule (3) –
   (i) in clause (a), in the Explanation, in clause (1), for the words “twenty-five”, the word “ten” shall be substituted;
   (ii) in clause (e), for the word “fifteen”, the word “ten” shall be substituted;
   
   (ii) in sub-rule (6),-
   (a) in sub-clause (iv), the word “and” shall be omitted;
   (b) after sub-clause (v), the following clauses shall be inserted, namely:-
   “(vi) the names of the relevant persons holding senior management position; and
   (vii) the registered office and the principal place of its business, if it is different.”;
   
   (iii) in sub-rule (7),-
   (a) in clause (iii), the word “and” shall be omitted;
   (b) in clause (iv), for the words “on its behalf:” the words on its behalf; and” shall be substituted;
   (c) after clause (iv), the following clause shall be inserted, namely:-
   (d) the names of all the partners and address of the registered office, and the principal place of its business, if it is different.”;
   
   (iv) in sub-rule (8),
   (a) In clause (iii), the word “and” shall be omitted;
   (b) after clause (iv), the following clauses shall be inserted, namely:-
   “(v) the names of the beneficiaries, trustees, settlor and authors of the trust and the address of the registered office of the trust; and
   (vi) list of trustees and documents as are required for individuals under sub-rule (4) for those discharging role as trustee and authorised to transact on behalf of the trust.”;
   
   (v) after sub-rule (9), the following sub-rules shall be inserted, namely:-
   “(9A) Every Banking Company or Financial Institution or intermediary, as the case may be, shall register the details of a client, in case of client being a non-profit organisation, on the DARPAN Portal of NITI Aayog, if not already registered, and maintain such registration records for a period of five years after the business relationship between a client and a reporting entity has ended or the account has been closed, whichever is later.
   
   (9B) Where the client has submitted any documents for the purpose of sub-rule (1), it shall submit to the reporting entity any update of such documents, for the purpose of updating the records mentioned under sub-rules (4),(5),(6),(7),(8) or (9), as the case may be, within 30 days of such updation.”
   
   (vi) in sub-rule (10), for the words “is a juridicial person”, the words “purports to act on behalf of juridicial person or individual or trust” shall be substituted.

Note: The principal rules were published in Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R. 444 (E), dated the 1st July, 2005 and were last amended vide number G.S.R. 575(E), dated the 13th July, 2022.

Notification

Read More on PMLA

Read More Updates