India has widened the ambit of anti-money laundering law by bringing in new reporting entities, and changed the way financial transactions are recorded, giving more powers to authorities as it prepares for a review by Financial Action Task Force (FATF) in November. The changes seek to make the framework more effective & compliant. ET looks at the changes:
MORE TEETH TO AUTHORITIES
Enforcement Directorate given more powers
Agency empowered to carry out search, seizure without notice
Imprisonment up to seven years
Power to impose fine without upper limit
Can seize and attach properties, including virtual currencies …
…TO ADMINISTER EXPANDED PMLA REGIME A: MORE REPORTING ENTITIES More entities brought under the PMLA reporting framework:. These are:
Chartered accountants, company secretaries, cost work accountants
Directors, secretaries of cos, partners of firms
Intermediaries in casinos and crypto or virtual digital assets
Trustees of express trusts, nominee shareholders
People arranging addresses, trustees for businesses
Individuals helping in formation of a company
B. MORE TRANSACTIONS & INCREASED DISCLOSURES
Lowered threshold of beneficial ownership to 10% from 25%
More disclosure of beneficial owners apart from KYC
More disclosure for non-profit organisation
Widened definition of ‘politically exposed persons
C. NUMBER OF ACTIVITIES COVERED BROADENED
Buying and selling any immovable property on behalf of someone
Managing client money, securities, or other assets
Management of bank, savings, or securities accounts
Organisation of contributions for creation, operation, or management of companies
