On September 4, 2023, the Ministry of Finance issued a notification outlining several amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 vide Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2023. The changes aim to enhance the clarity and stringency of money-laundering prevention efforts.
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 4th September, 2023
G.S.R. 652(E).— In exercise of the powers conferred by section 73 read with section 11A and section 12AA of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, namely: —
1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2023.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred to as the principal rules);-
(i) In the principal rule, in rule 2, after clause (f) the following proviso shall be inserted namely:-“Provided that such officer shall be an officer at the management level;”.
(ii) In the principal rule, in rule 9;-
(A) in sub-rule (3), in clause (b);-
(a) for the word “fifteen” the word “ten” shall be substituted;
(b) after the word “partnership”, the words “or who exercises control through other means” shall be inserted;
(c) after clause (b), the following Explanation shall be inserted, namely:-
“Explanation – For the purpose of this clause, “Control” shall include the right to control the management or policy decision;”.
(B) after sub-rule (10), the following proviso shall be inserted, namely:-
“Provided that in case of a trust, the reporting entity shall ensure that trustees disclose their status at the time of commencement of an account based relationship or when carrying out transactions as specified in clause (b) of sub-rule (1) rule 9.”.
(iii) In the principal rule, in rule 10, in sub-rule (3), in the Explanation, after the word “correspondence”, the words “and result of any analysis undertaken under rule 3 and rule 9” shall be inserted.
[F. No.P-12011/12/2022-ES Cell-DOR]
MANOJ KUMAR SINGH, Director (Headquarter)
Note: The principal rules were published in Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R. 444 (E), dated the 1st July, 2005 and were last amended vide number G.S.R. 1074(E), dated the 07th March, 2023.
