Central Govt amends Prevention of Money-laundering (Maintenance of Records) Rules, 2005 [Read Notification]

The Central Government, vide notification no. G.S.R. 652(E) amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Exercising the authority granted by Section 73 in read with Sections 11A and 12AA of the Prevention of Money-laundering Act, 2002, the Central Government is now issuing the subsequent regulations to modify the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

The rules may be called the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2023. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (principal rules);-

1. 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;”

2. 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.”

3. 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.

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