Description

NSE mandates trading members to submit FATF compliance actions through ENIT New Compliance module by December 5, 2025, following October 2025 FATF Plenary updates on high-risk jurisdictions.

Summary

NSE has issued a mandatory compliance requirement for all trading members to submit their actions taken in response to the FATF (Financial Action Task Force) Public Statement on jurisdictions under call for action and increased monitoring from the October 2025 Plenary. Members must update their compliance status through the FATF module in “ENIT New Compliance” system by December 5, 2025. This circular (NSE/INSP/71322) is a follow-up to circular NSE/ISC/71297 dated November 14, 2025, providing implementation details and submission procedures.

Key Points

  • All trading members must submit FATF compliance actions through the prescribed format in ENIT New Compliance FATF module
  • Members can select ’not applicable’ option if FATF requirements don’t apply to their operations
  • User manual (Annexure A) provided with detailed step-by-step submission procedures
  • Non-compliance or late submission will attract penal charges and disciplinary actions as per circular NSE/INSP/70746 dated October 10, 2025
  • Regional office contacts provided for clarifications across five offices (Ahmedabad, Chennai, Delhi, Kolkata, Mumbai)
  • Central help desk available at compliance_assistance@nse.co.in

Regulatory Changes

This circular implements the FATF October 2025 Plenary updates on jurisdictions requiring enhanced due diligence and monitoring. Trading members are now required to formally document and report their compliance actions through a dedicated electronic module, enhancing transparency and regulatory oversight of anti-money laundering measures.

Compliance Requirements

Mandatory Actions:

  • Access ENIT New Compliance portal through NSE Member Portal (https://www.connect2nse.com/MemberPortal/home.jsp or https://enit.nseindia.com/MemberPortal/)
  • Navigate to FATF module within the compliance system
  • Update actions taken in response to FATF jurisdictional restrictions in prescribed format
  • If not applicable, explicitly select ’not applicable’ option and submit declaration
  • Follow procedures detailed in Annexure A user manual
  • Ensure timely submission to avoid penalties

Login Requirements:

  • Valid User ID, Member Code, and Password for Member Portal access
  • Proper credentials for Electronic Member Interface

Important Dates

  • Reference Circular Date: November 14, 2025 (NSE/ISC/71297)
  • Current Circular Date: November 17, 2025
  • Submission Deadline: Friday, December 5, 2025

Impact Assessment

Operational Impact: All trading members must allocate resources to review their client onboarding, transaction monitoring, and enhanced due diligence procedures related to FATF-identified high-risk jurisdictions. This requires immediate action to assess exposure and document compliance measures within an 18-day window.

Compliance Risk: Failure to submit by December 5, 2025 will result in penal charges and potential disciplinary action, which could affect member standing and operational permissions. The mandatory nature and tight deadline create compliance urgency.

System Impact: Members must ensure access to ENIT New Compliance system and familiarize themselves with the FATF module interface. Technical support is available through regional offices if system access issues arise.

AML/CFT Framework: This reinforces NSE’s commitment to international anti-money laundering and counter-terrorist financing standards by ensuring all trading members actively monitor and report on transactions involving FATF-flagged jurisdictions, strengthening India’s financial system integrity.

Impact Justification

High importance due to mandatory FATF compliance reporting with specific deadline and potential penal actions. Medium impact as it affects all trading members' operational compliance processes but doesn't directly impact market operations or trading activities.