The Securities and Exchange Board of India (SEBI) vide a circular dated October 13, 2023, has amended the Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) obligations for Securities Market Intermediaries under the Prevention of Money Laundering Act (PMLA) and relevant rules.

Key takeaways:

1. Determining Beneficial Ownership:

– For companies, a natural person acting alone or together/through juridical person(s) who has controlling ownership or control through other means would be the beneficial owner.
– In partnership firms, a natural person acting alone or together/through juridical person(s) who has ownership to 10% of capital or profit or control would be the beneficial owner.
– For unincorporated associations or bodies of individuals, a natural person acting alone or together/through juridical person(s) who has ownership over 15% of property or capital or profits would be the beneficial owner.
– If no natural person is identified, the natural person holding the position of senior managing official would be the beneficial owner.
– For trusts, it is mandatory to identify the authors, trustees, and beneficiaries with over 10% interest, ensuring disclosure by trustees during the account relationship or specific transactions.

2. Obligations of Principal Officer:

The Principal Officer is responsible for ensuring registered intermediaries report suspicious transactions to the financial intelligence unit (FIU).

https://www.sebi.gov.in/legal/circulars/oct-2023/amendment-to-the-guidelines-on-anti-money-laundering-aml-standards-and-combating-the-financing-of-terrorism-cft-obligations-of-securities-market-intermediaries-under-the-prevention-of-money-laund-_77975.html