All the Insurers,
The Prevention of Money Laundering Act, 2002 (PMLA) has been brought into force with effect from 1st July 2005. Necessary Notifications / Rules under the said Act have been published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, and Government of India.
2. As per the provisions of the Act, every banking company, financial institution (which includes Insurance company) and intermediary shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules notified under the PMLA.
3. The Guidelines ( please dowload the pdf attachement)enclosed herewith are being issued to the insurers in the context of the recommendations made by the Financial Action Task Force (FATF) on anti-money laundering standards.
4. You are advised to ensure that a proper policy framework as per the Guidelines on anti-money laundering measures is put into place by 1st July 2006. You are also advised to designate an officer as ‘Principal Compliance Officer’ who would be responsible for ensuring compliance of the provisions of the PMLA. Names, designation and addresses (including e-mail addresses) of ‘Principal Compliance Officer’ should be intimated to the Office of the Director-FIU, 6th Floor, Hotel Samrat, Chanakyapuri, and New Delhi 110021 India and to the Authority immediately.
5. This circular is being issued in exercise of powers conferred under Section 34 of the Insurance Act, 1938.
(C. R. Muralidharan)