The Ministry of Finance, Department of Revenue has notified Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2023.
The 2023 Amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 has been made in exercise of power vested in the Central Government under Section 73 of the Prevention of Money-Laundering Act, 2002.
Few of the amendments are:
-Clause (cba) has been inserted which defines ‘Group’ to have the same meaning as in Section 286(9)(e) of the Income Tax Act, 1961.
e) “group” includes a parent entity and all the entities in respect of which, for the reason of ownership or control, a consolidated financial statement for financial reporting purposes,—
(i) is required to be prepared under any law for the time being in force or the accounting standards of the country or territory of which the parent entity is resident; or
(ii) would have been required to be prepared had the equity shares of any of the enterprises were listed on a stock exchange in the country or territory of which the parent entity is resident;”
-Definition of “non-profit organisation” has been amended to mean any entity or organisation constituted for religious or charitable purposes as referred to in Section 2(15) of the Income Tax Act, 1961 and is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or company registered under Section 8 of the Companies Act, 2013. Prior to the amendment the ‘non-profit organisation’ was defined as any entity or organisation registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under section 8 of the Companies Act, 2013.
-Rule 9 dealing with cllient-due diligence has been majorly amended.
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