Anti Money Laundering and Anti terrorism financing Policy
SEBI Master Circular on Anti Money Laundering (AML and Combating Financing of Terrorism (CFT)- Obligations of Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules Framed there-under and all subsequent changes included by SEBI from time to time
PMLA came into effect from 1st July 2005. Necessary Notifications/ Rules under
the said Act were published in the Gazette of India on 1st July 2005 by the
Department of Revenue, Ministry of Finance, Government
of India. The PMLA has been further amended vide notification dated March 6,
2009, and inter alia provides that violating the prohibitions on manipulative
and deceptive devices, insider trading and substantial acquisition of
securities or control as prescribed in Section 12 read with Section 24 of the
Securities and Exchange Board of India Act, 1992 (SEBI Act) will now be treated
as a scheduled offence under schedule B of the PMLA.
As per the provisions of the PMLA, every banking company, financial institution (which includes chit fund company, a co-operative bank, a housing finance institution and a non-banking financial company) and an intermediary (which includes a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary, shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules under the PMLA. Such transactions include:
▪ All cash transactions of the value of more than Rs 10 lakh or it's equivalent in foreign currency (7500 USD)
▪ All series of cash transactions integrally connected to each other which have been valued below Rs 10 lakh or it's equivalent in foreign currency where such series of transactions take place within one calendar month.
▪ All suspicious transactions whether or not made in cash and including, inter-alia, credits or debits into from any non-monetary account
POLICIES AND PROCEDURES TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING
These Directives have taken into account the requirements of the PMLA This policy is drafted on the basis of nature of our business, organizational structure, type of client and transaction, etc. to satisfy itself that the measures taken by it are adequate and appropriate and follow the spirit of the suggested measures and the requirements as laid down in the PMLA.
Obligation to establish policies and procedures
Global measures taken to combat drug trafficking,
terrorism and other organized and serious crimes have all emphasized the need
for financial institutions, including securities market intermediaries, to
establish internal procedures that effectively serve to prevent and impede
money laundering and terrorist financing. The PMLA is in line with these
measures and mandates that all intermediaries ensure the fulfilment of the
To be in compliance with these obligations, the senior management of a registered intermediary is fully committed to establishing appropriate policies and procedures for the prevention of ML and TF and ensuring their effectiveness and compliance with all relevant legal and regulatory requirements. The Company shall:
Policies and procedures to combat ML cover:
is generally recognized that certain clients may be of a higher or lower risk
category depending on the circumstances such as the client’s background, type
of business relationship or transaction etc. As such,
we shall apply each of the clients due diligence measures on a risk
sensitive basis. The basic principle enshrined in this approach is that the
registered intermediaries shall adopt an enhanced client due diligence process
for higher risk categories of clients. Conversely, a simplified client due
diligence process may be adopted for lower risk categories of clients. In line
with the risk-based approach, the type and amount of identification information
and documents that may be necessary for the purpose depending upon the risk
category of a particular client.
We shall ensure compliance with the record keeping requirements contained in the SEBI Act, 1992, Rules and Regulations made there-under, PMLA as well as other relevant legislation, Rules, Regulations, Exchange Bye-laws and Circulars.
We shall maintain such records as are sufficient to permit reconstruction of individual transactions (including the amounts and types of currencies involved, if any) so as to provide, if necessary, evidence for prosecution of criminal behaviour.
Any suspected drug related or other laundered money or terrorist property, the competent investigating authorities would need to trace through the audit trail for reconstructing a financial profile of the suspect account. To enable this reconstruction, The Company shall retain the information for the accounts of their clients in order to maintain a satisfactory audit trail:
INFORMATION TO BE MAINTAINED
We are required to maintain and preserve the following information in respect of transactions referred to in Rule 3 of PML Rules:
REPORTING TO FINANCIAL INTELLIGENCE UNIT-INDIA
Financial Intelligence Unit-India,
The requirements and formats are divided into two parts- Manual Formats and Electronic Formats. Details of these formats are given in the documents (Cash Transaction Report- and Suspicious Transactions Report or as may be prescribed time to time). The detailed instructions for filing all types of reports are given in the instructions part of the related formats, intermediaries shall adhere to the following:
The policy shall be reviewed from time to time as and when required by the Management but at least once in a year and also implement the change after any change in the Act through amendment in the Act, Provision or any circular issued in this manner