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

Sep 19, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Finance on September 18, 2019, has published the Prevention of Money-laundering (Maintenance of Records) Fourth Amendment Rules, 2019 to further amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

Some of the major amendments in the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, are as under:

Ø  Under Rule 2 which specifies the Definitions, after sub-rule (1) (aaf), the following clause has been inserted, namely:

Clause (aag): “Depository Receipt” means a foreign currency denominated instrument, whether listed on an international exchange or not, issued by a foreign depository in a permissible jurisdiction on the back of eligible securities issued or transferred to that foreign depository and deposited with a domestic custodian and includes 'global depository receipt' as defined in the Companies Act, 2013.

Ø  Under Rule 9 which talks about client due diligence, after sub-rule (1), the following shall be inserted, namely:

Provided that where a client is subscribing or dealing with depository receipts or equity shares, issued or listed in jurisdictions notified by the Central Government, of a company incorporated in India, and it is acting on behalf of a beneficial owner who is a resident of such jurisdiction, the determination, identification and verification of such beneficial owner, shall be as per the norms of such jurisdiction.  

They shall come into force on the date of their publication in the Official Gazette that is September 18, 2019.

[Notification No. G.S.R. 669(E)] 


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