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 […]
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
Understanding the Obligations of Reporting Entities under PMLA Read More »
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
How to Respond to a Director’s Request for Information under PMLA: A Step-by-Step Guide Read More »
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
The Importance of Beneficial Ownership Identification for Reporting Entities Read More »
Money laundering has been a prevalent problem for decades, and its origin can be traced back to organized criminal activities in the West. The infamous ‘Watergate Scandal’ gave rise to the term ‘The Mafia,’ to legitimize their income on paper, they indulged in the ownership of laundry houses in the United States. However, the practice
The Origin of Money Laundering: A Brief History Read More »
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,
The Impact of the Finance Act of 2019 on Reporting Entities Read More »
