Description

User manual for trading members to submit FATF declarations regarding clients from jurisdictions identified by SEBI, with mandatory template upload requirements.

Summary

BSE has released a user manual for trading members to comply with SEBI’s FATF (Financial Action Task Force) declaration requirements. Trading members must identify clients belonging to jurisdictions specified by SEBI and submit declarations through the BEFS portal. The SEBI template must be uploaded compulsorily by all members, regardless of whether they have clients in the specified countries.

Key Points

  • Trading members must identify clients belonging to jurisdictions specified by SEBI from time to time
  • Appropriate due diligence on existing clients is mandatory
  • Proper alert mechanisms must be in place to identify business relationships and transactions with specified jurisdictions
  • SEBI template must be uploaded by ALL members (mandatory requirement)
  • Members with clients in specified countries must upload CSV file with Unique Client Code and Client Name
  • SEBI template must be printed on company letterhead and signed/stamped by MD/Compliance Officer or digitally signed
  • Submission is done through BEFS portal at https://befs.bseindia.com/login.aspx

Regulatory Changes

No new regulatory changes introduced. This is a procedural user manual explaining the existing FATF declaration process that trading members must follow based on SEBI requirements.

Compliance Requirements

For All Trading Members:

  1. Download and complete SEBI template
  2. Convert template to PDF format
  3. Print on company letterhead and obtain signature/stamp from MD/Compliance Officer (or digitally sign)
  4. Upload signed PDF to BEFS portal compulsorily
  5. Select applicable period and save
  6. Click confirmation tab and submit

Additional Requirements for Members with Clients in Specified Jurisdictions:

  1. Prepare CSV file containing:
    • Unique Client Code (UCC)
    • Client Name
  2. Upload CSV file along with SEBI template
  3. Conduct appropriate due diligence on existing clients
  4. Implement alert mechanisms to identify business relationships and transactions with specified jurisdictions

Process Steps:

  • Step 1: Login to BEFS portal and navigate to FATF Declaration - Declaration Form
  • Step 2: Select Period and click Save
  • Step 3: Upload CSV file (if applicable) and SEBI template PDF
  • Step 4: Click Save, then click Confirmation tab and Submit
  • Acknowledgement email will be sent upon successful submission

Important Dates

No specific dates mentioned. Declaration must be submitted for periods as specified by SEBI from time to time.

Impact Assessment

Operational Impact:

  • Trading members must establish ongoing monitoring systems for client jurisdictions
  • Additional administrative burden for documentation and submission
  • Requires coordination between compliance and operations teams

Compliance Impact:

  • Mandatory requirement for all trading members regardless of client composition
  • Non-compliance may result in regulatory action
  • Reinforces AML/CFT obligations under FATF guidelines

System Impact:

  • Members must use BEFS portal for submissions
  • CSV file format required for client data upload
  • Digital signature capability may be needed for template submission

Impact Justification

High importance due to mandatory compliance requirement for all trading members regarding FATF jurisdictions and AML obligations. Medium impact as it affects operational procedures but applies to specific client segments.