Centre amends rules under anti-money law, tight grips over NGOs funding
Centre has amended rules under the anti-money law, making it mandatory for banks and financial institutions to record financial transactions of politically exposed persons (PEPs).
The financial institutions or reporting agencies will be required to collect information about the financial transactions of non-profit organizations or NGOs under the provisions of the Prevention of Money Laundering Act (PMLA)
The amended money laundering rules define PEPs as “individuals who have been entrusted with prominent public functions by a foreign country, including the heads of states or governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials”.
The financial institutions will also have to register details of their NGO clients on the Darpan portal of the Niti Aayog and maintain the record for five years after the business relationship between a client and a reporting entity has ended or the account has been closed, whichever is later, a gazette notification said.
This amendment to the banking regulations has made it mandatory for banks & financial institutions to preserve records of financial transactions completed by politically exposed persons (PEPs) and non-governmental organizations (NGOs). These documents must then be shared with the Enforcement Directorate when requested.
[With Inputs from IANS]
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