Ministry of Finance notifies Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023 [Read Notification]

The Ministry of Finance, vide notification no. G.S.R. 745(E), issued on 17th October 2023 has notified the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023.

In the exercise of authority granted by section 73 of the Prevention of Money-laundering Act, 2002, the Central Government has issued the rules to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

These rules are named the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2023, and they come into effect on the date of their publication in the Official Gazette that is 17th October 2023.

The brief of the changes are:

1. In rule 2, in sub-rule (1), in clause (b), the words “using reliable and independent sources of identification” shall be added.
2. Rule 3A is substituted to require reporting entities that are part of a group to implement group-wide programs against money laundering and terror financing, including policies for sharing information, ensuring confidentiality, and preventing tipping-off.
3. In rule 8, changes include the prompt furnishing of suspicious transaction information to the Director and ensuring confidentiality of records and information.
4. Rule 9 modifications pertain to identifying clients, verifying their identity, understanding the customer’s business, determining beneficial ownership, and updating information.

These amendments aim to enhance anti-money laundering and counter-terrorist financing measures and align with international and intergovernmental organisation guidelines.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates