RBI updates KYC norms: Strengthen Anti-Money Laundering and Terror Financing measures

  • Blog, Legal Updates

Brief Overview:

 The RBI vide its notification dated 17th October 2023 amended Master Directions on KYC dated 25th February 2016 (“Amended Master Directions”) to strengthen anti-money laundering and counter-financing of terrorism measures; and to ensure that regulated entities are complying with the latest laws and regulations.

Technical Details:

The key highlights of the Amended Master Directions are provided below:
 
1)  Updated instructions considering amendments to the Prevention of Money Laundering Rules (“PML Rules”):
 
(a)  Lowered percentage of controlling ownership for determination of beneficial owner to 10%.
 
(b)  Aligned definitions of ‘Politically Exposed Persons’ and ‘Non-profit Organization’ with the PML Rules.
 
(c)  Proposed new concept of “Group”.
 
2)  Amended as per Financial Action Task Force’s recommendations: Mitigated risks posed by virtual assets and virtual asset service providers;
 
3)  Specified requirements for ‘Regulated Entities’ to comply with the Foreign Contribution (Regulation) Act, 2010;
 
4)  Clarified customer due diligence requirements for low-risk and high-risk customers;
 

5)  Enhanced due diligence requirements for customers from high-risk jurisdictions.

For further details, please see:

●  Amendment to the Master Direction (MD) on KYC

CIRCULARMDONKYC5406E44FAC85476798B09989D51F7498.PDF (rbi.org.in)

For any queries/clarifications, please feel free to ping us and we will be happy to chat:

● Mr. Ankit Sinha (ankit.sinha@jclex.com)
● Mr. Saurabh Sharma (saurabh.sharma@jclex.com)
● Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)

Similar Articles

Union Budget 2024 - Impact Analysis

Union Budget 2024 – Impact Analysis

Legal Updates

Unwinding the blueprint of transition finance

Article

SEBI’s update to the NCD regime

SEBI’s update to the NCD regime

Legal Updates

RBI issues Master Directions on Fraud Risk Management in NBFCs

RBI Issues Master Directions on Fraud Risk Management in NBFCs.

Legal Updates

RBI and IFSCA allow remittances for all permissible purposes under LRS to IFSCs!

RBI and IFSCA allow remittances for all permissible purposes under LRS to IFSCs!

Legal Updates

Form A2 now required for all cross-border remittances!

Form A2 now required for all cross-border remittances!

Legal Updates

Debt securities with smaller face value: T&Cs apply!

Legal Updates

MahaRERA: Designated bank accounts to be opened by developers for monies received from home buyers

Legal Updates

OTC Derivatives on Gold & Silver- Permitted for IBUs!

Legal Updates

SECURITY DEPOSIT MAY QUALIFY AS FINANCIAL DEBT – THE SUPREME COURT DECODES

Article

Union Budget 2024 - Impact Analysis

Union Budget 2024 – Impact Analysis

Legal Updates

Unwinding the blueprint of transition finance

Article

SEBI’s update to the NCD regime

SEBI’s update to the NCD regime

Legal Updates

RBI issues Master Directions on Fraud Risk Management in NBFCs

RBI Issues Master Directions on Fraud Risk Management in NBFCs.

Legal Updates

Subscribe to our Newsletter

Juris Corp: Navigating Law through Teamwork and Innovation.

© 2024 | Juris Corp

X-twitter

HOME

ABOUT US

PRACTICE GROUPS

KEY PEOPLE

KNOWLEDGE BANK

CAREERS

CONTACT US

Explore

HOME
ABOUT US
KEY PEOPLE
FINANCIAL SERVICES
DISPUTE RESOLUTION & INSOLVENCY
REGULATORY
CORPORATE COMMERCIAL
KNOWLEDGE BANK
CAREERS
CONTACT US

DISCLAIMER

The Bar Council of India prohibits advocates from soliciting work or advertising. By clicking ‘AGREE’ below, the user acknowledges that no solicitation has been made, and this website serves as a resource for general information about Juris Corp at the user’s own risk. The information provided here neither constitutes legal advice nor creates a lawyer-client relationship. The links provided are not endorsements by Juris Corp, and Juris Corp is not responsible for any linked content. Users are advised to seek independent legal advice for any legal issues.
I Understand and Agree
I Disagree