What changed
The Government of India amended the Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005, via Notification No. 7/2010-E.S.F dated February 12, 2010. RBI has now communicated these amendments to all NBFCs and RNBCs, requiring them to study, disseminate, and strictly follow the updated provisions.
What it means for you
NBFCs and RNBCs must update their internal policies and procedures to align with the amended PMLA Rules, particularly around client identity verification and record-keeping. Non-compliance could invite regulatory action, so lenders should treat this as a priority compliance mandate.
What you must do
- Obtain and study the enclosed Government Notification to understand the specific amendments.
- Disseminate the amended rules across your organization, ensuring all relevant staff are trained.
- Update your internal KYC and transaction monitoring systems to comply with the new requirements.
- Conduct a compliance audit to verify adherence to the amended PMLA Rules.
- Maintain meticulous records as per the updated rules and be ready for RBI inspections.
Who it affects
All Non-Banking Financial Companies (NBFCs), All Residuary Non-Banking Companies (RNBCs)
What is the effective date of these amended PMLA Rules?
The Government Notification amending the rules was issued on February 12, 2010. RBI's circular was issued on May 26, 2010, advising compliance with the amended provisions.