TMI BlogRole and Responsibilities of Reporting Entities under PMLAX X X X Extracts X X X X X X X X Extracts X X X X ..... ty Section 11A of the PMLA, 2002 puts burden on the Reporting Entity to verify the identity and beneficial owners. Various methods and modes of identification have been prescribed in the section itself. Moreover, various notifications have been issued in this regard. Reporting entity to maintain records. Section 12 of the PMLA, 2002 puts burden on reporting entity to keep and maintain records of the transactions in the prescribed manner. The information to be furnished to the Director with the stipulated time limit and in the prescribed manner. It is the responsibility of the reporting entity to keep the maintained, furnished or verified as confidential. The records shall be kept for 5 years from the date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 information and verification of records of the identity of the clients of the banking companies, financial institutions and intermediaries. These rules are being amended from time to time. Power to Director of PMLA Section 13 of the PMLA, 2002 prescribes powers of Directors under the PMLA as Inquiry with regards to obligations of reporting entity The Director may, either of his own motion or on an application mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a monetary penalty on such reporting entity or its designated director on the Board or any of its employees, 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 any civil or criminal proceedings against them for furnishing information under clause (b) of sub-section (1) of section 12 Section 12 - Reporting entity to maintain records. - FAQ - Frequently ..... X X X X Extracts X X X X X X X X Extracts X X X X
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