Facts for Prelims (FFP)
Source: Live Mint
Context: The Securities Exchange Board of India (SEBI) has issued a set of amendments to strengthen anti-money laundering(AML) standards and combat finance terrorism (CFT).
- These guidelines are based on rules established under the Prevention of Money Laundering Act of 2002.
The key amendments include:
- Additional Measures: Financial groups must implement group-wide programs to deal with money laundering. Additional measures should be taken if the host country does not meet AML/CFT requirements consistent with the home country’s standards.
- Disclosing Status: In the case of a trust, the reporting entity must ensure that trustees disclose their status at the commencement of an account-based relationship.
- Identifying Beneficial Ownership
These amendments aim to enhance the effectiveness of AML/CFT measures and strengthen the process of identifying beneficial ownership.
