Prevention of Money – Laundering (Maintenance of Records) Amendment Rules, 2019

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G.S.R. 108(E).— In exercise of the powers of section 73 of the Prevention of Money-laundering Act, 2002, the Central Government of India further makes rules to amend the Prevention of Money laundering (Maintenance of Records) Rules, 2005. There are 12 amendments made to this act and the same has been renamed.

As per the newly amended rules,

  1. These rules may be called the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2019.
  2. They have come into force on the date of their publication in the Official Gazette i.e. on 13th February 2019. 
  3. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005
  • “Aadhaar number” shall have the meaning assigned to it in the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
  • After the words “driving license” the words “proof of possession of Aadhaar number” shall be inserted in the clause
  • Where a client submits his proof of possession of Aadhaar number as an officially valid document, he may submit it in such form as the ones issued by the Unique Identification Authority of India.

    4. In rule 9 of the Prevention of Money-laundering (Maintenance of Records)           Rules,  2005

  • The words “who is eligible to be enrolled for an Aadhaar number,” shall be omitted and substituted namely with “the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016, or a copy of any other officially valid document in other cases containing details of his identity and address, and one recent photograph”.
  • For the portion starting with the words “the Aadhaar” and ending with “valid document”, the words and number “Permanent Account Number or Form No.60, as the case may be shall be substituted

For Companies

5. Where the client is a company, it needs to submit the following certified copies of the below documents to the reporting entity

  • certificate of incorporation
  • Memorandum and Articles of Association
  • Permanent Account Number of the company
  • a resolution from the Board of Directors and power of attorney granted to its managers, officers or employees, as the case may be, to transact on its behalf
  • one copy of an officially valid document containing details of identity and address, one recent photograph and Permanent Account Numbers or Form No.60 of the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf

For Partnership Firm

6. Where the client is a partnership firm, it needs to submit the following certified copies of the below documents to the reporting entity

  • registration certificate
  • partnership deed
  • Permanent Account Number of the partnership firm
  • one copy of an officially valid document containing details of identity and address, one recent photograph and Permanent Account Number or Form No.60 of the person holding an attorney to transact on its behalf

For Trust

7. Where the client is a trust, it needs to submit the following certified copies of the below documents to the reporting entity

  • registration certificate
  • trust deed
  • Permanent Account Number or Form No.60 of the trust
  • one copy of an officially valid document containing details of identity and address, one recent photograph and Permanent Account Number or Form No.60 of the person holding an attorney to transact on its behalf

For Unincorporated Association or a Body of Individuals

8. Where the client is an unincorporated association or a body of individuals, it needs to submit the following certified copies of the below documents to the reporting entity

  • resolution of the managing body of such association or body of individuals
  • Permanent account number or Form No.60 of the unincorporated association or a body of individuals
  • power of attorney granted to him to transact on its behalf
  • one copy of an officially valid document containing details of his identity and address, one recent photograph and Permanent Account Number or Form No.60 of the person holding an attorney to transact on its behalf
  • such information as may be required by the reporting entity to collectively establish the existence of such association or body of individuals

9. Any reporting entity, which has been issued banking license by the Reserve Bank of India, at receipt of the Aadhaar number from his client may carry out authentication of the client’s Aadhaar number using e-KYC authentication facility provided by the Unique Identification Authority of India upon receipt of the client’s declaration that he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, 2016 in his account.

10. Every reporting entity shall, where its client submits his Aadhaar number, ensure such client to redact or blackout his Aadhaar number through appropriate means where the authentication of Aadhaar number is not required.

11. A client already having an account based relationship with a reporting entity, shall submit his Permanent Account Number or Form No.60, on such date as may be notified by the Central Government, failing which the account shall temporarily cease to be operational till the time the Permanent Account Number or Form No. 60 is submitted by the client.

12. In case of an officially valid document furnished by the client does not contain the updated address, the following documents shall be deemed to be officially valid documents for the limited purpose of proof of address

  • utility bill of any service provider like electricity, telephone, post-paid mobile phone, piped gas, water bill which is not more than two months old
  • Municipal tax receipt or property
  • pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address
  • letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions, and listed companies and leave and license agreements with such employers allotting official accommodation.

Visit InstaFinancials and reach out to us. We provide Financial Insights of all companies in India along with providing financial reports and crucial public documents of any company in India. Visit our blog https://blog.instafinancials.com/to get the latest updates and news on the Indian Corporate.

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Important Links

Please refer link for the detailed notification

Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2019

Money Laundering cases in 2018

  1. Sterling Biotech Promoters Declared Fugitive Economic Offenders
  2. Names of 55K Directors Linked to Delisted ‘Shell Companies’
  3. 55,000 Shell Companies Struck Off in 2nd Phase by MCA

 

 

 

 

 

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