What changed
The Government of India amended the Prevention of Money-laundering Rules, 2005, through a notification dated November 12, 2009. RBI has now communicated these amendments to all NBFCs and RNBCs, advising strict adherence. The circular does not detail specific rule changes but emphasizes the need for full compliance.
What it means for you
NBFCs and RNBCs should study the amendments and spread them across their organization. They must strictly follow the amended provisions of the PMLA Rules. The circular does not specify consequences for non-compliance.
What you must do
- Obtain and study the Government notification (No.13/2009) to understand the specific amendments.
- Ensure the amendments are clearly noted and spread across your organisation.
- Strictly follow the amended provisions of the PMLA Rules.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
What is the effective date for these amended PMLA Rules?
The Government notification was issued on November 12, 2009, and RBI's circular was dated April 23, 2010. The source does not specify an effective date for compliance.
Do these rules apply to all NBFCs regardless of size?
Yes, the circular addresses 'All Non Banking Financial Companies / Residuary Non Banking Companies,' so all such entities must comply.
What happens if an NBFC fails to comply?
The circular does not specify penalties or consequences for non-compliance.