Banking frauds: Finance Ministry asks 9,000 non-compliant NBFCs to register with Finance Intelligence Unit

New Delhi: The finance ministry on Thursday asked over 9,000 non-compliant NBFCs to register with FIU-IND to fulfil the requirements under Prevention of Money Laundering Act (PMLA).

PMLA imposes obligation on reporting entities (REs) including Non-Banking Financial Companies (NBFCs) to verify identity of clients, maintain records and furnish information to FIU-IND (Financial Intelligence Unit - India).

File image of finance minister Arun Jaitley. PTI.

File image of finance minister Arun Jaitley. PTI.

In a statement, the ministry said as unregistered NBFCs remain outside the reporting ambit of FIU, they pose a risk to the integrity of the country's financial system.

The FIU, in the finance ministry, has published a list of 9,236 'non-compliant NBFCs' which have not fulfilled their obligation under PMLA.

"All NBFCs which have failed to comply with any of the... requirements are now required to register their RE, Principal Officer (PO) and Designated Director with FIU-IND," the ministry said.

The list would be revised monthly. To facilitate the filing of prescribed reports under PMLA, FIU has developed a portal called FINnet Gateway. The procedure for registration of RE and PO is available on the FIU-IND website.

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Updated Date: Mar 22, 2018 18:47:03 IST

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