The Ministry of Finance (MoF) on September 04, 2023, issued the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2023 to further amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
The following has been amended namely: -
• Rule 2 (f) which states “Definition of Principal Officer” the following proviso shall be inserted:
“Provided that such officer shall be an officer at the management level”
• Rule 9 which states “Client Due Diligence” after sub-rule (3)(b) the following shall be inserted: -
“Explanation - For the purpose of this clause, “Control” shall include the right to control the management or policy decision”
• Furthermore, the following proviso shall be inserted after Rule 9(10):
“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”
This has come into force on September 04, 2023
[Notification No. G.S.R. 652(E)]
