The Ministry of Finance (MoF) on October 17, 2023, published the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023 to further amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
This shall come into force on October 17, 2023
The following has been stated namely: -
• in rule 2 which states “definitions”, in sub-rule (1), in clause (b), after the word “Act”, the words “using reliable and independent sources of identification” shall be inserted.
• For rule 3A which states “Implementation of policies by groups” the following rule shall be substituted, namely: -
“3A. Implementation of policies by groups. – (1) Every reporting entity, which is part of a group, shall implement group-wide programs against money laundering and terror financing, including group-wide policies for sharing information required for the purposes of client due diligence and money laundering and terror finance risk management and such programs shall include adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off.
(2) 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.
• in rule 8 which states “Furnishing of information to the Director”
(i) for sub-rule (2), the following sub-rule shall be substituted, namely: -
“(2) The principal officer of a reporting entity shall, on being satisfied that the transaction is suspicious, furnish the information promptly in writing by fax or by electronic mail to the Director in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3.”.
(ii) after sub-rule (5), the following sub-rule shall be inserted, namely: -
"(6) Every reporting entity, its Directors, officers, and all employees shall ensure that the fact of maintenance of records referred to in rule 3 and furnishing of information to the Director is kept confidential.
[Notification No. G.S.R. 745(E)]
