Policies

The Rules and Regulations framed out under the Anti-Money Laundering standard in order to prevent entry of entry of illegal money into the financial system and to combat Financing of Terrorism is called the Prevention of Money Laundering Act, 2002 (PMLA 2002). It is one of the legal frame-work put in place to combat Money Laundering (ML) and Terrorist Financing (TF) activities and came into force with effect from 1st of July 2005. Pursuant to amendments made to the PMLA and Rules made thereunder, updated guidelines in the context of recommendations made by Financial Action Task force (FATF) on Anti-Money Laundering standards should be taken into consideration as and when required. Global measures taken to combat drug trafficking, terrorism and other organized and serious crimes have all emphasized the need for financial institutions, including securities market intermediaries, to establish internal procedures that effectively serve to prevent and impede Money Laundering (ML) and Terrorist Financing (TF). The PMLA 2002 is in line with these measures and mandates that all intermediaries ensure the fulfilment of the aforementioned obligations.

The PMLA 2002 imposes obligations on all the financial market intermediaries to verify the identity of the client, maintain records and furnish information to FIU-IND.

In view of the above a procedure has been framed out as mentioned herebelow, which is binding on all the employees of the organisation. The procedure outlines the steps that should be implemented in order to discourage and identify any Money Laundering (ML) and Terrorist Financing (TF) activities. The relevance and usefulness of these procedures will be kept under review and it may be necessary to amend the same from time to time.