New Rules for NBFCs
The Finance Ministry has imposed some new Rules for NBFC (Non-Banking Finance Companies)
All unregistered NBFCs are required to contact the CTR Cell, FIU-IND (011-24672138, ctrcell@fiuindia.gov.in) for any registration related queries. FIU-IND would delete the names of NBFCs once their registration process is completed and the list would be revised monthly.
The procedure for registration of RE and PO is available on the FIU-IND<ahref=”http://fiuindia.gov.in”>website.
All NBFCs which have failed to comply with any of the above requirements are now required to register their Reporting Entity (RE), Principal Officer (PO) and Designated Director with FIU-IND.
It may be noted that registration of RE and PO is only through the online mode, i.e. FINnet Gateway portal, while intimation of appointment/change of Designated Director is by way of a letter to FIU-IND).
The said list has been published by FIU-IND so as to enable the bankers to conduct enhanced due diligence of transactions carried-out by such NBFC. As per provisions of the PML Act & Rules, all NBFCs are required to intimate details of their Designated Director to FIU-IND.
As these unregistered NBFC remain outside the reporting ambit of FIU-IND, they pose a risk to the integrity of the country’s financial system &, FIU-IND has published the list of such ‘non-compliant NBFCs which have not fulfilled their obligation under PML Act & Rules.
To facilitate the filing of prescribed reports under PMLA, FIU-IND has developed a platform called FINnet Gateway portal. To file prescribed reports, it is necessary for a Reporting Entity (RE) to register itself & its Principal Officer (PO) through FINnet Gateway portal of FIU-IND.
Prevention of Money Laundering Act, 2002 (PMLA) and the Rules impose the obligation on reporting entities (RE’s) including Non-Banking Financial Companies (NBFC’s) to verify the identity of clients, maintain records and furnish information to FIU-IND.