Anti-Money Laundering Law

Expanding the Scope of Reporting Entities: Recent Implications on Money Laundering Act Compliance

The Importance of Customer Due Diligence in Banking and Financial Institutions

Customer due diligence is the process of verifying the identity of customers before conducting business with them. It is a crucial part of the anti-money laundering (AML) and counter-terrorism financing (CTF) framework in the financial sector. Customer due diligence is a key requirement for banks and other financial institutions to identify and manage money laundering […]

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Expanding the Scope of Reporting Entities: Recent Implications on Money Laundering Act Compliance

Expanding the Scope of Reporting Entities: Recent Implications on Money Laundering Act Compliance

The Ministry of Finance has recently come out with the notification dated May 03, 2023, which widened the ambit of the term “Reporting Entity” as defined in section 2(1)(wa) read with sec. 2 (1)(sa) of the Prevention of Money Laundering Act, 2002 (‘PMLA’). Who is a Reporting Entity? As per Section 2(1)(wa) of the Prevention

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Understanding Due Diligence Requirements for Reporting Entities under PMLA

Understanding the Obligations of Reporting Entities under PMLA

Reporting entities such as banking institutions, financial institutions, intermediaries, etc., have various obligations to maintain records, access information, and conduct due diligence to prevent money laundering and terrorist financing activities. This comprehensive guide will provide a clear understanding of due diligence requirements for reporting entities. Obligations of Reporting Entities Section 12, 12A, and 12AA of

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how to respond to a Director's request for information under PMLA. We will provide a step-by-step guide that will help you

How to Respond to a Director’s Request for Information under PMLA: A Step-by-Step Guide

The Prevention of Money Laundering Act, 2002 (PMLA) was enacted to prevent and control money laundering and related activities. The PMLA defines money laundering as a process whereby proceeds of crime are converted into legitimate assets. The PMLA requires that every reporting entity such as banking institutions, financial institutions, intermediaries, etc., maintain records, access to

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The Importance of Beneficial Ownership Identification for Reporting Entities

The Importance of Beneficial Ownership Identification for Reporting Entities

In today’s world, financial transactions are increasing day by day, which has given rise to money laundering and terrorist financing activities. To counter such activities, the government has introduced laws and regulations to prevent and deter money laundering and terrorist financing activities. One such law is the Prevention of Money Laundering Act (PMLA), which requires

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Best Practices for Record-Keeping and Due Diligence by Reporting Entities

Best Practices for Record-Keeping and Due Diligence by Reporting Entities

The fight against money laundering, terrorist financing, and other financial crimes is a top priority for governments, regulators, and financial institutions worldwide. Reporting entities such as banks, financial institutions, intermediaries, etc., play a crucial role in preventing financial crimes. These entities are obligated to maintain records, perform due diligence, and identify beneficial owners. In this

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The Impact of the Finance Act of 2019 on Reporting Entities: A Comprehensive Guide

The Impact of the Finance Act of 2019 on Reporting Entities

The Finance Act of 2019 has brought significant changes in the reporting requirements of financial institutions and intermediaries. The amendments have been made to the Prevention of Money Laundering Act, 2002 (PMLA), which aims to prevent money laundering and terrorist financing. In this article, we will explore the obligations of reporting entities, including banking institutions,

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PMLA Compliance Checklist

PMLA Compliance Checklist: What Reporting Entities Need to Know

The Prevention of Money Laundering Act (PMLA) is a critical piece of legislation that seeks to combat the illicit flow of funds in India. Reporting entities, including banking institutions, financial institutions, intermediaries, etc., have a pivotal role to play in ensuring that PMLA guidelines are followed to the letter. In this post, we will provide

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PMLA Act

Compliance Requirements for Reporting Entities: Section 12AA of PMLA

The Prevention of Money Laundering Act (PMLA) is a significant legislation that seeks to curb the proliferation of black money and illegal financial activities in India. The Act imposes specific obligations on reporting entities such as banks, financial institutions, intermediaries, etc., to ensure that they comply with the law’s provisions and prevent money laundering and

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