Introduction: The Ministry of Finance, Department of Revenue, issues Notification S.O. 1339(E) on 14th March 2024, granting permission to certain reporting entities to conduct Aadhaar authentication. This move is in accordance with the provisions of the Prevention of Money-laundering Act, 2002, and the Aadhaar Act, 2016.
Detailed Analysis:
The notification specifies the reporting entities authorized to perform Aadhaar authentication, including Wealthstreet Financial Services Pvt Ltd, Equal Identity Pvt Ltd, Neo Wealth Management Pvt Ltd, and SAMCO Securities Limited. The decision is made after ensuring compliance with privacy and security standards mandated by the Aadhaar Act and consultation with relevant authorities such as the Unique Identification Authority of India and the Securities and Exchange Board of India.
Aadhaar authentication provides a secure and efficient means of verifying the identity of individuals, which is crucial in the context of financial transactions and anti-money laundering efforts. By permitting reporting entities to utilize Aadhaar authentication, the government aims to enhance the integrity and effectiveness of the regulatory framework governing financial activities.
Conclusion: The Ministry of Finance’s decision to allow reporting entities to perform Aadhaar authentication marks a significant step towards streamlining regulatory processes and bolstering security measures in the financial sector. This move is expected to facilitate smoother compliance with anti-money laundering regulations while ensuring the privacy and security of individuals’ personal information. It reflects the government’s commitment to leveraging technology for enhancing transparency and efficiency in financial transactions.
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MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 14th March, 2024
S.O. 1339(E).—In exercise of the powers conferred by sub-section (1) of section 11A of the Prevention of Money-laundering Act, 2002 (15 of 2003) (hereinafter referred to as the Money-laundering Act), the Central Government on being satisfied that the reporting entities mentioned in the Table below comply with the standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) (hereinafter referred to as the Aadhaar Act), and it is necessary and expedient to do so, and after consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar Act and the appropriate regulator namely, the Securities and Exchange Board of India, hereby permits the said reporting entities to perform authentication under the Aadhaar Act for the purposes of section 11A of the Money-laundering Act, namely:-
TABLE
| S. No.
(1) |
Reporting Entities (2) |
| 1 | Wealthstreet Financial Services Private Limited |
| 2 | Equal Identity Private Limited |
| 3 | Neo Wealth Management Private Limited |
| 4 | SAMCO SECURITIES LIMITED |
[F. No. P-12011/3/2022-ES Cell-DOR]
MANOJ KUMAR SINGH, Director (Headquarter)
