Role and Responsibilities of Reporting Entities under PMLA

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..... entity is introduced w.e.f. w.e.f. 15-2-2013 to the PMLA, 2002 Who are the reporting entities under PMLA? - Discussed in detail separately as: Reporting Entity under Prevention of Money Laundering Act, 2002 (PMLA) Role and Responsibilities of Reporting Entities under PMLA * Verification of identity by reporting entity Section 11A of the PMLA, 2002 puts burden on the Reporting Entity to verif .....

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..... 12A of the PMLA, 2002 empowers the Director (designated officer) to call for from any reporting entity any of the records and any additional information as he considers necessary for the purposes of this Act. Reporting entity has to comply with the directions and shall keep the information sought by the Director as confidential. * Enhanced due diligence - Before entering into the specified tra .....

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..... relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed. * PML (MAINTENANCE OF RECORDS) RULES, 2005 Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 Central Government has framed rules for maintenance of records of the nature and value of transactions, the procedure and manner of maintaining and time for furnishing of inf .....

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..... nion that it is necessary to do so, he may direct the concerned reporting entity to get its records, as may be specified, audited by an accountant (chartered accountant) from amongst a panel of accountants, maintained by the Central Government for this purpose. Cost of the Audit shall be born by the Central Government. * Levy of Fine or Taking action against the Reporting Entity If the Direc .....

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..... which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure. Safeguard in favor of Reporting Entity Section 14 of PMLA, 2002 states that, No civil or criminal proceedings against reporting entity, its directors and employees in certain cases Save as otherwise provided in section 13, the reporting entity, its directors and employees shall not be liable to .....

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