Description

User manual for BSE trading members to submit FATF declarations regarding clients belonging to jurisdictions identified by SEBI, with instructions for uploading declarations through BEFS portal.

Summary

BSE has issued a user manual for trading members to submit FATF (Financial Action Task Force) declarations through the BEFS portal following the October 2025 FATF Plenary. Trading members must identify clients belonging to jurisdictions specified by SEBI and submit mandatory declarations. The SEBI template must be uploaded compulsorily by all members, regardless of whether they have clients in the identified countries.

Key Points

  • Trading members must identify clients belonging to jurisdictions identified by SEBI from time to time
  • Mandatory submission of FATF declaration through BEFS portal (https://befs.bseindia.com/login.aspx)
  • SEBI template must be uploaded compulsorily by all members, irrespective of client presence in identified countries
  • Template must be printed on company letterhead and signed/stamped by MD/Compliance Officer or digitally signed
  • If clients from identified countries exist, a CSV file with Unique Client Code and Client Name must be uploaded
  • Members must have appropriate due diligence and alert mechanisms to identify business relationships with these jurisdictions
  • Acknowledgement email sent upon successful submission

Regulatory Changes

This circular updates the process for FATF declarations following the October 2025 Plenary, requiring trading members to use the BEFS portal for mandatory submissions. The process ensures compliance with SEBI’s anti-money laundering (AML) and counter-terrorism financing requirements.

Compliance Requirements

For All Trading Members:

  1. Login to BEFS portal: https://befs.bseindia.com/login.aspx
  2. Navigate to “FATF Declaration – Declaration Form” on left pane
  3. Select period and save
  4. Check for clients belonging to SEBI-specified countries
  5. Download and complete SEBI template
  6. Convert template to PDF format
  7. Print on company letterhead and obtain signature/stamp from MD/Compliance Officer (or digitally sign)
  8. Upload signed PDF to BEFS portal
  9. Click confirmation tab and submit

If Members Have Clients in Identified Countries:

  • Prepare CSV file containing Unique Client Code and Client Name
  • Upload CSV file along with SEBI template

Ongoing Requirements:

  • Carry out appropriate due diligence on existing clients
  • Maintain proper alert mechanisms to identify business relationships and transactions with identified jurisdictions

Important Dates

No specific deadlines mentioned. Members should submit declarations for the period selected in the BEFS portal as per SEBI requirements.

Impact Assessment

Compliance Impact: High - This is a mandatory compliance requirement for all BSE trading members with compulsory template submission.

Operational Impact: Medium - Members need to:

  • Review entire client base for presence of clients from FATF-identified jurisdictions
  • Implement alert mechanisms for ongoing monitoring
  • Complete documentation and upload process through BEFS portal
  • Maintain due diligence procedures

Risk Impact: High - Non-compliance with FATF and AML requirements can result in regulatory penalties and reputational damage. Proper implementation helps members avoid business relationships that could expose them to money laundering or terrorism financing risks.

Impact Justification

Mandatory compliance requirement for all trading members to identify and report clients from FATF-identified jurisdictions, with compulsory SEBI template submission regardless of client presence