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

No: ---- Dated: Sep, 18 2019

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 18th September, 2019

G.S.R. 669(E).—In exercise of the powers conferred by section 73 read with section 11A and section 12AA of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, namely:—

1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records) Fourth Amendment Rules, 2019.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred to as the principal rules), in rule 2 in sub-rule (1), after clause (aaf), the following clause shall be inserted, namely:-

‘(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 (18 of 2013);’.

3. In the principal rules, in rule 9:--

(i) 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 and nothing in the sub-rules (3) to (9) of these rules shall be applicable for due-diligence of such beneficial owner.”.

Explanation – For the purposes of this proviso, the expression “equity share” means a share in the equity share capital of a company and equity share capital shall have the same meaning as assigned to it in the Explanation to section 43 of the Companies Act, 2013.”;

(ii) in sub-rule (3), for clause (f), the following clause shall be substituted, namely;-

“(f) where the client or the owner of the controlling interest is an entity listed on a stock exchange in India, or it is an entity resident in jurisdictions notified by the Central Government and listed on stock exchanges in such jurisdictions notified by the Central Government, or it is a subsidiary of such listed entities, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such entities.”

[F. No. M.11014/1/2017-ES Cell-DOR]

A. K. GHARAI, Under Secy.

Note : The principal rules were published in Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide numbers G.S.R. 444(E), dated the 1st July, 2005 and were last amended vide G.S.R. 582(E) dated 19th August, 2019.

Actual Document -