FinMin gives more teeth to PMLA

New Delhi: The Union Finance Ministry has tightened the anti-money laundering rules by bringing in partners holding 10 per cent stake in a firm, as against 15 per cent earlier, under the definition of beneficial owners.

The ministry has amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, which also provides for management-level functionary as Principal Officer responsible for providing information to the financial intelligence unit. The amendment also said that in the 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 specified transactions. The government has in recent months tightened various anti-money laundering provisions ahead of assessment by the global watchdog on terror financing and money laundering Financial Action Task Force (FATF).

The agency is scheduled to conduct an assessment of the implementation of anti-money laundering and counter-terror financing standards in India later this year. In May, the Finance Ministry had notified changes in PMLA provisions which made chartered and cost accountants and company secretaries liable under the anti-money laundering law for carrying out certain specified financial transactions on behalf of their clients.