class="MsoNormal" style="text-align: justify;">The International Financial Services Centers Authority (IFSCA) on May 23, 2023, issued a Circular regarding the Guidance to the International Financial Services Centers Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.
This has a reference to the IFSCA Money Laundering, Counter-Terrorist Financing, and Know Your Customer) Guidelines, 2022 issued vide notification IFSCA/2022-23/GN/GL001 dated October 28, 2022, and the Gazette notification dated March 07, 2023, related to the amendments to the prevention of Money-laundering (Maintenance of Records) Rules, 2005
The following has been stated namely: -
• It states that Anti Money Laundering, Counter-Terrorist Financing, and Knowing Your Customer) Guidelines, 2022 shall stand modified as per the table attached.
• In The Ministry of Finance notification vide S.O. 2135(E) dated May 03, 2023. the Central Government notified that “the financial transactions carried out by a relevant person on behalf of his client, in the course of his or her profession, in relation to the following activities-
(i) buying and selling of any immovable property;
(ii) managing client money, securities, or other assets;
(iii) management of bank, savings, or securities accounts;
(iv) organization of contributions for the creation, operation, or management of
companies;
(v) creation, operation, or management of companies, limited liability partnerships or trusts, and buying and selling of business entities shall be an activity for the purposes of said sub-section.
• It states that Under clause 10.5 (Additional measures) of the Guidelines, the aforementioned activities have principally been covered and now the same shall be read with the notification dated May 03, 2023
• It further states that all Regulated Entities shall note that the Ministry of Finance has also notification vide S.O. 2135(E) dated May 09, 2023. Where the Central Government has notified the following activities when carried out in the course of business on behalf of or for another person, as the case may be, as an activity for the purposes of sub-clause (vi) of clause (sa) of sub-section (1) of Section 2 of the Act, namely: -
(i) “acting as a formation agent of companies and limited liability partnerships;
(ii) acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a firm, or a similar position in relation to other companies and limited liability partnerships;
(iii) providing a registered office, business address or accommodation, correspondence, or administrative address for a company or a limited liability partnership or a trust;
(iv) acting as (or arranging for another person to act as) a trustee of an express trust or performing the equivalent function for another type of trust; and
(v) acting as (or arranging for another person to act as) a nominee shareholder for another person.
• It is to be noted that All other provisions specified in the Guidelines shall remain unchanged.
• The Copy of the circular is available on the IFSCA website at https://ifsca.gov.in/Legal/Index
[Notification No. F. No. 939/IFSCA/FATF-C/PMLA/2023-24]
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