Description

BSE circular relaying SEBI communication on FATF's February 2026 Plenary statements identifying jurisdictions under increased monitoring, including newly added Kuwait and Papua New Guinea.

Summary

BSE has issued a notice relaying a SEBI communication regarding the Financial Action Task Force (FATF) Public Statements released after the February 2026 Plenary. FATF has updated its lists of jurisdictions subject to ‘Call for Action’ and ‘Increased Monitoring’ as part of ongoing efforts to identify and address strategic Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) deficiencies. Members are required to take note and ensure compliance.

Key Points

  • FATF released two public statements following the February 2026 Plenary covering jurisdictions under ‘Call for Action’ and those under ‘Increased Monitoring’
  • Kuwait and Papua New Guinea have been newly identified as jurisdictions subject to increased monitoring
  • The communication originates from SEBI and is being disseminated by BSE to all members
  • Members must take necessary compliance actions in light of these updated FATF designations

Regulatory Changes

FATF has updated its jurisdiction risk classifications following the February 2026 Plenary:

  • Increased Monitoring (newly added): Kuwait, Papua New Guinea
  • Full updated lists are available on FATF’s official website via the links provided by SEBI

Compliance Requirements

  • BSE members must review the FATF public statements on high-risk and monitored jurisdictions
  • Members must take necessary actions and ensure compliance with AML/CFT obligations with respect to transactions or counterparties linked to newly designated jurisdictions (Kuwait and Papua New Guinea)
  • For clarifications, members may contact BSE Member Oversight at 022-69158540, 022-45720640, 022-45720440, or via email at Bse.inspection@bseindia.com

Important Dates

  • Notice Date: 13 March 2026
  • FATF Plenary Reference: February 2026
  • No specific deadline mentioned; compliance is expected immediately upon receipt of notice

Impact Assessment

This circular has a moderate compliance impact on BSE members, particularly those engaged in transactions with counterparties in or connected to Kuwait and Papua New Guinea. Members must enhance due diligence for these jurisdictions in line with FATF’s increased monitoring designation. There is no direct impact on domestic equity trading or listed securities, but non-compliance with AML/CFT obligations can attract regulatory scrutiny and penalties.

Impact Justification

Regulatory compliance advisory for BSE members regarding FATF-designated high-risk and monitored jurisdictions; requires action but does not directly affect trading or listed securities.