Prevention of Money Laundering ( Maintenance of Records) Second Amendment Rules, 2023

Last updated: 05 September 2023

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The Ministry of Finance has introduced the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2023. These amendments, effective from their publication date, update the 2005 rules. Key changes include specifying that officers responsible for certain provisions must be at a management level. Additionally, the period for certain actions has been reduced from fifteen to ten days, and the definition of 'control' has been clarified to include influencing management or policy decisions. For trusts, trustees must now disclose their status when establishing account relationships or conducting specified transactions.

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;

“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)

FAQ :

These rules come into force on the date of their publication in the Official Gazette.

The amendments specify that such officers must be at a management level.

Yes, the word 'fifteen' has been substituted with 'ten' in sub-rule (3) of rule 9.

The definition of 'control' now includes the right to control the management or policy decisions.

In the case of a trust, reporting entities must ensure that trustees disclose their status at the commencement of an account-based relationship or when carrying out specified transactions.

The Explanation now includes 'and result of any analysis undertaken under rule 3 and rule 9' after the word 'correspondence'.