The Securities and Exchange Board of India (SEBI) on February 20, 2024, issued a circular regarding the Centralization of certifications under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration Agencies (KRAs).
The following has been stated:
• Based on feedback received from stakeholders in the securities market, and for ease of doing business and compliance reporting, it is decided that the intermediaries, who are RFI, shall upload the FATCA and CRS certifications obtained from the clients onto the system of KRAs with effect from July 01, 2024.
• The existing certifications obtained from clients before July 01, 2024, shall be uploaded by the intermediaries onto the systems of KRAs within 90 days of implementation of this circular.
• The onus of obtaining and reporting the FATCA and CRS certification and related compliances shall lie with the respective intermediaries.
• The intermediary shall confirm the reasonableness of such certification based on the information obtained in respect of account opening, including any documentation obtained under Prevention of Money Laundering (Maintenance of Records) Rules, 2005 and shall update the self-certification, as and when there is a change reported by the client.
• The KRAs shall develop their systems/mechanisms, in coordination with each other and shall follow uniform internal guidelines/standards, in consultation with SEBI.
[Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12]
