MOF notifies Prevention of Money-laundering (Maintenance of Records) Amendment Rules 2023

The Ministry of Finance has notified Prevention of Money-laundering (Maintenance of Records) Amendment Rules 2023 via issuing Notification.

The Notification Stated, ” In exercise of the powers conferred by section 73 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.”

These rules may be called the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2023. They shall come into force on the date of their publication in the Official Gazette.

In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred to as the principal rules), in rule 2, in sub-rule (1) –

(i) after clause (cb), the following clause shall be inserted, namely:

“(cba) “group” shall have the same meaning assigned to it in clause (e) of sub-section (9) of section 286 of the Income-tax Act,1961 (43 of 1961);

(ii) existing clause (cba) shall be re-numbered as clause (cbb);

(iii) for clause (cf), the following clause shall be substituted, namely:-

“(cf) “Non-profit organization” means any entity or organisation, constituted for religious or charitable purposes referred to in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a Company registered under the section 8 of the Companies Act, 2013 (18 of 2013);”

(iv) after clause (da) the following clause shall be inserted, namely: –

“(db) “Politically Exposed Persons” (PEPs) are individuals who have been entrusted with prominent public functions by a foreign country, including the heads of States or Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials;”

In the principal rules, after rule 3, the following rule shall be inserted, namely: –

“(3A) Implementation of policies by groups. – Groups are required to implement group-wide policies for the purpose of discharging obligations under the provisions of Chapter IV of the Prevention of Money-laundering Act, 2002 (15 of 2003).”.

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