Regulatory Alerts2024-06-06
SEBI Master Circular on AML/CFT Standards and Obligations of Securities Market Intermediaries under PMLA
The Securities and Exchange Board of India (SEBI) issued this Master Circular to consolidate and supersede previous directives regarding Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) obligations for securities market intermediaries. The document mandates registered intermediaries and stock exchanges to establish robust internal policies, conduct rigorous Client Due Diligence (CDD), and implement risk-based approaches to identify beneficial ownership and monitor suspicious transactions. It further requires the maintenance of specific records, reporting to the Financial Intelligence Unit-India, and compliance with group-wide AML procedures for branches and subsidiaries, particularly in jurisdictions with insufficient FATF standards.