09 Aug, 2021 - 08:21PM
Q.16: We are reaching out to you regarding understanding compliance norms for our prospect clientele which is primarily based out of Uganda which I understand have additional surveillance and reporting requirements under PMLA Act as well as SEBI RIA requirements.
Our specific query was as follows:
- In terms of the fresh money, we wanted to understand the compliance norms and reporting requirements before accepting fresh funds. Our fresh investment recommendation to them were presently on the pause due to lack of clarity on the the above issues.
- Also, any other such rule and regulation that we need to be aware of before onboarding fresh set of clients from these restricted set of countries.
As we need clarity whether we can onboard client from Uganda. All these prospects are NRI with PAN card and other KYC details available.
Request you to address the same.
Response:
Request you to refer & follow the SEBI PMLA Guidelines i.e. 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 Laundering Act, 2002 and Rules framed thereunder.
Section 2 of the Guidelines lays down the following procedures and obligations are to be followed by all registered intermediaries to ensure compliance with AML/ CFT directives primarily covering following areas:
- Written Anti Money Laundering Procedures
- Client Due Diligence (CDD)
- Record Keeping
- Information to be maintained
- Retention of Records
- Monitoring of transactions
- Suspicious Transaction Monitoring and Reporting
- List of Designated Individuals/ Entities
- Procedure for freezing of funds, financial assets or economic resources or related Services
- Reporting to Financial Intelligence Unit-India
- Designation of officers for ensuring compliance with provisions of PMLA
- Employees’ Hiring/Employee’s Training/ Investor Education
Disclaimer:
Information contained in the responses / answers to the queries posted to ARIA, and related notes / discussion / documents / guidelines / interpretations / publication provided in connection to such responses to queries, are intended for use, primarily by the relevant queryist and generally for members of ARIA only, to the extent suitable to their situation / case. If you are not the intended audience of these query-response artefacts, an agent of the intended audience or a person responsible for delivering the information to the named entities, you are notified that any use, distribution, transmission, printing, copying or dissemination of this information in any way or in any manner is strictly prohibited.
Every effort has been made to avoid errors or omissions in these query-response artefacts. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice at membership@aria.org.in (more contact details at https://aria.org.in) which shall be taken care of in the next update and release.
Though, we may provide, to the best extent possible, a reasonably proper response to the query, there may be, alternative answers / approaches / interpretations / improvisation possible.
It is notified that neither ARIA nor the authors, including, members of Sanjay Kadel & Co. Chartered Accountants, or anyone connected herewith will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications.