Amendment of section 73.
192. In section 73 of the principal Act, in sub-section (2), after clause (jj), the following clauses shall be inserted, namely:––
“(jja) the manner and the conditions in which authentication of the identity of clients shall be verified by the reporting entities under clause (a) of sub-section (1) of section 12AA;
(jjb) the manner of identifying the ownership and financial position of the client under clause (b) of sub-section (1) of section 12AA;
(jjc) additional steps to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties under clause (c) of sub-section (1) of section 12AA;
(jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.’’.
Notes on Clauses:
Clauses 187 to 192 of the Bill seek to amend certain provisions of the Prevention of Money-Laundering Act, 2002.
It is proposed to amend sub-clause (i) of clause (n) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Securities and Exchange Board of India.
It is further proposed to amend sub-clause (ii) of clause (sa) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Financial Intelligence Unit, India.
It is also proposed to amend section 12A so as to provide the reference of newly inserted section 12AA therein.
It is also proposed to insert a section 12AA of the said Act so as to provide for the provisions for enhance due diligence.
It is also proposed to amend section 15 of the said Act so as to provide the reference of newly inserted section 12AA therein.
It is also proposed to insert Section 72A to allow power to Central Government to constitute Inter Ministerial Co-ordination Committee that is responsible for coordination and cooperation across all relevant/competent authorities on implementation of Financial Action Task Force standards. This is required for effective implementation of Financial Action Task Force standards Recommendations and to draw, coordinate, monitor and review the Anti Money Laundering or Countering Financing of Terrorism policies or activities and their implementation to strengthen Anti Money Laundering or Countering Financing of Terrorism framework in line with Financial Action Task Force standards.
It is also proposed to amend section 73 of the Act so as to provide certain rule making provisions.
