The Prevention of Money Laundering (Maintenance of Records) Rules, 2005 have been amended by the Central Government and the amended rules are titled “Prevention of Money Laundering (Maintenance of Records) Amendment Rules, 2023”. The amendments will come into force on the date of their publication in the Official Gazette.
The following amendments have been carried out:
- Insertion of Clause (cba) in Rule 2(1)
The definition of ‘group’ has been added. It shall have the same meaning as Section 286(9)(e) of the Income Tax Act, 1961.
- Substitution of Clause (cf) in Rule 2(1)
The substituted clause is concerning the definition of a ‘Non-profit organization.’
- Insertion of Clause (da) in Rule 2(1)
The definition of ‘Politically Exposed Person’ has been added.
- Insertion of Rule 3A
“Implementation of policies by groups- Groups are required to implement group-wide policies for the purpose of discharging obligations under the provisions of Chapter IV of the Prevention of Money Laundering Act, 2002 (15 of 2003.”
- Insertion of Rules 9A and 9B
9A- Every Banking company/financial institution or intermediary must register the details of client if the client is a non- profit organization. The registration has to be done on the DARPAN Portal of NITI Aayog.
9B- If any document has been submitted by the client, the same shall be submitted to the reporting entity.
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