NEW DELHI: The government on Thursday asked all the non-compliant Non-Banking Financial Companies (NBFCs) to comply with the requirements under the Prevention of Money Laundering Act (PMLA), by registering themselves with Financial Intelligence Unit-India (FIU-IND).
In an official statement issued on Thursday, Commerce and Industry Minister Suresh Prabhu said that PMLA makes it mandatory for NBFCs to verify the identity of clients, maintain records and furnish information to the FIU-IND.
To facilitate the filing of prescribed reports under PMLA, FIU-IND has developed a platform called FINnet Gateway portal. In order to file the prescribed reports, it is necessary for a Reporting Entity to register itself and its Principal Officer through the FINnet Gateway portal.
“The unregistered NBFCs remain outside the reporting ambit of FIU-IND and pose a risk to the integrity of the country’s financial system,” an official statement said. It said the FIU-IND has published the list of such “non-compliant NBFCs”.
“All NBFCs which have failed to comply with any of the requirements are now required to register their Reporting Entity, Principal Officer and Designated Director with FIU-IND,” the statement said.
It added that the list would be revised on a monthly basis and the names of NBFCs would be deleted once their registration process is complete.