NBFCs asked to comply with anti-money laundering rules

It said that PMLA makes it mandatory for NBFCs to verify the identity of clients, maintain records and furnish information to Financial Intelligence Unit-India.

NEW DELHI: The government on Thursday asked the non-compliant Non-Banking Financial Companies (NBFCs) to comply with the requirements under the Prevention of Money Laundering Act (PMLA).

It said that PMLA makes it mandatory for NBFCs to verify the identity of clients, maintain records and furnish information to Financial Intelligence Unit-India (FIU-IND), for which they need to register themselves and their Principal Officers with the unit through its online 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 added that 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 (RE), Principal Officer (PO) 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.

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