Description
BSE circular notifying private sector entities about Proliferation Financing (PF), Terrorist Financing (TF) and Money Laundering risks and compliance requirements.
Summary
BSE has issued a notification to private sector entities regarding Proliferation Financing (PF), Terrorist Financing (TF) and Money Laundering risks. This circular provides guidance and compliance requirements for entities to identify, assess and mitigate these financial crime risks.
Key Points
- Notification covers three major financial crime risks: Money Laundering, Terrorist Financing, and Proliferation Financing
- Applies to all private sector entities under BSE’s jurisdiction
- Part of enhanced regulatory framework for Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT)
- Emphasizes risk assessment and mitigation strategies
Regulatory Changes
Enhanced compliance framework requiring private sector entities to:
- Implement robust risk assessment procedures for PF, TF and ML risks
- Establish appropriate internal controls and monitoring systems
- Ensure compliance with applicable AML/CFT regulations
Compliance Requirements
- Private sector entities must assess their exposure to PF, TF and Money Laundering risks
- Implement appropriate risk mitigation measures
- Maintain compliance with relevant regulatory guidelines
- Report suspicious transactions as per existing requirements
Important Dates
- Circular Date: August 14, 2025
- Entities should implement compliance measures immediately
Impact Assessment
This notification significantly impacts all private sector entities by:
- Requiring enhanced due diligence and risk assessment capabilities
- Potentially increasing compliance costs for affected entities
- Strengthening India’s overall AML/CFT regulatory framework
- Aligning with international standards for combating financial crimes
Impact Justification
Critical compliance notification addressing money laundering, terrorist financing and proliferation financing risks for all private sector entities