The MoF has, by way of a Notification dated March 7, 2023, amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’). Below is a summary of the key changes:
i. The threshold for determining beneficial ownership for the purpose of client due diligence by reporting entities under the PMLA Rules has been amended as follows:
- in case of a company – 10% percent of shares or capital or profits (previous threshold was 25%),
- in case of a trust – 10% percent or more interest (previous threshold was 15%); and
ii. Banking companies and financial institution or their intermediary, as the case may be, are now required to register the details of their non-profit organization clients, on the DARPAN Portal of NITI Aayog, and maintain such registration records for a period of five years after the business relationship with such client ends or the account has been closed, whichever is later.