SEBI Issues Guidelines on Anti-Money Laundering Standards and Combating the Financing of Terrorism and Obligations of Securities Market Intermediaries

The Securities and Exchange Board of India (SEBI) in its circular dated 15^th october 2019, has issued a master circular which lays down 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

This guidelines shall be applicable to every banking company, financial institution and intermediary registered under section 12 of  the Securities and Exchange Board of India Act, 1992. And they shall adhere to client account opening procedure and maintain records of such transaction as prescribed by the  Prevention  of  Money  Laundering  Act,  2002 and this Circular.

Pursuant to amendments  made  to  the  Prevention  of  Money  Laundering  Act,  2002  and  Rules, SEBI has UPDATES guidelines in the context of recommendations made by Financial Action Task force (FATF)on anti-money laundering standards

The Master Circular lay down guidelines related to the following:

1. The First part of the guidelines contain an Overview on the background and essential principles that concern combating Money Laundering (ML) and Terrorist Financing (TF)
2. The second part provides a detailed account of the procedures and obligations to be followed by all registered intermediaries to ensure compliance with AML and CFT directives

The key circulars/ directives issued with regard to KYC, CDD, AML and CFT have been mentioned in Schedule I. These directives lay down the minimum disclosure requirements for intermediaries.

This Master Circular shall supersede the earlier Master Circular dated July 04, 2018

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