9911796707
TMI BlogAnti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Obligations of Securities Market Intermediaries under the Prevention of Money laundering Act, 2002 and Rules framed there underX X X X Extracts X X X X X X X X Extracts X X X X ..... rcular CIR/ISD/AML/3/2010 dated December 31, 2010 on the captioned subject. 2. In view of the amendments to the Prevention of Money-laundering Act, 2002 (PML Act) and amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (PML Rules), it has been decided to make the following consequential modifications and additions to the above referred SEBI Master Circular dated December 31, 2010: 2.1. In clause 5 of Part II, after sub-clause 5.3.1, following sub-clause shall be inserted: 5.3.2 Risk Assessment i. Registered intermediaries shall carry out risk assessment to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk with respect to its clients, countries or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with CDD and record-keeping requirements in line with the obligations under the PML Act. ii. Such reliance shall be subject to the conditions that are specified in Rule 9 (2) of the PML Rules and shall be in accordance with the regulations and circulars/ guidelines issued by SEBI from time to time. Further, it is clarified that the registered intermediary shall be ultimately responsible for CDD and undertaking enhanced due diligence measures, as applicable. 2.3. Record keeping requirements: a. In sub-clause 8.1 of Part II regarding maintenance of records pertaining to transactions of clients: The words "for a period of ten years" shall be substituted with "for a period of five years". b. In sub-clause 8.2 of Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of five years from the date of transaction between the client and intermediary". e. In clause 8 of Part II, after sub-clause 8.4, following sub-clause shall be inserted - 8.5 Records of information reported to the Director, Financial Intelligence Unit - India (FIU-IND): Registered intermediaries shall maintain and preserve the record of information related to transactions, whether attempted or executed, which are reported to the Director, FIU-IND, as required under Rules 7 & 8 of the PML Rules, for a period of five years from the date of the transaction between the client and the intermediary. 2.4. In clause 14 of Part II, after sub-clause 14.1, following sub-clause shall be inserted: 14.2 Appointment of a Designated Directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered intermediaries shall communicate the details of the Designated Director, such as, name, designation and address to the Office of the Director, FIU-IND. 3. Registered intermediaries are directed to review their AML/CFT policies and procedures and make changes to the same accordingly. The other provisions specified in the SEBI Master Circular dated December 31, 2010 remain the same. 4. The Stock Exchanges and Depositories are directed to: a. bring the provisions of this Circular to the notice of the Stock Brokers and Depository Participants, as the case may be, and also disseminate the same on their websites; b. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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