SEBI and NISM launch NISM XXIV- AML and CFT Provisions in Securities Market Certification Examination

## Report on SEBI and NISM Launch of NISM XXIV AML and CFT Provisions in Securities Market Certification Examination **1. Executive Summary:** This report analyzes the Securities and Exchange Board of India (SEBI) and National Institute of Securities Markets (NISM) initiative to launch the "NISM XXIV AML and CFT Provisions in Securities Market Certification Examination." This new policy aims to establish a common minimum knowledge benchmark for securities market intermediaries' employees and associated persons regarding Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) provisions. The key finding is that this certification program is designed to enhance awareness and compliance with AML/CFT regulations within the securities market. **2. Introduction:** The purpose of this report is to provide an informative overview of the new policy introduced by SEBI and NISM concerning the "NISM XXIV AML and CFT Provisions in Securities Market Certification Examination," based solely on the provided policy text. **3. Policy Overview:** * This is a **New Policy**. * **Core Objective(s):** The core objective is to create a common minimum knowledge benchmark for employees and associated persons of securities market intermediaries regarding: * Concepts of AML and CFT and related aspects. * Provisions of the PMLA PML rules, and scheduled offences under the SEBI Act and the Companies Act. * Guidelines pertaining to Anti Money Laundering AML Standards, Combating the Financing of Terrorism CFT and Proliferation Financing PF. **4. Background and Rationale:** As a new policy, this initiative likely addresses a perceived need to strengthen AML/CFT compliance within the securities market. The policy text suggests that SEBI recognizes the importance of awareness and understanding of these regulations among market participants. This new certification examination likely aims to improve overall competency and adherence to AML/CFT standards within the industry. **5. Key Provisions / Changes:** * This is a new policy, so this section details the policy's main components. * **Certification Examination:** The core component is a certification examination developed by SEBI in collaboration with NISM. * **Exam Structure:** The exam is one hour in duration and consists of 50 questions, each worth one mark. * **Certification Award:** Participants who successfully complete the course and exam will be awarded a certificate. * **Course Content:** The course covers: * Concepts of AML and CFT and related aspects. * Provisions of the PMLA PML rules, and scheduled offences under the SEBI Act and the Companies Act. * Guidelines pertaining to Anti Money Laundering AML Standards, Combating the Financing of Terrorism CFT and Proliferation Financing PF. * **Registration:** Details pertaining to the course modules and registration procedure are available on the NISM website. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience and stakeholders are primarily: * Employees and associated persons of securities market intermediaries. * Securities market participants in general. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** SEBI and NISM are jointly responsible for the implementation of this policy. NISM appears to be responsible for administering the certification program. * **Timelines/Procedures:** While the policy text doesn't specify concrete deadlines, it indicates that registration details and course modules are available on the NISM website, suggesting immediate implementation. The circular for the certification examination can be accessed at https:www.nism.ac.incircularnismseriesxxivamlandcftprovisionsinsecurities marketscertificationexaminationnismcertificationamlcftseriesxxiv202501dated february072025 * The examination was announced March 10, 2025 **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes based on the policy's stated provisions are: * Increased knowledge and awareness of AML/CFT regulations among securities market intermediaries' employees and associated persons. * Improved compliance with AML/CFT standards within the securities market. * A standardized minimum level of knowledge on AML/CFT for industry professionals. * Strengthened capital market due to enhanced regulatory compliance. **9. Conclusion:** The launch of the "NISM XXIV AML and CFT Provisions in Securities Market Certification Examination" represents a significant step by SEBI and NISM to enhance AML/CFT compliance within the securities market. By establishing a common minimum knowledge benchmark, this policy is expected to contribute to a more robust and secure financial ecosystem. The requirement for certification encourages industry professionals to stay informed and adhere to the latest regulatory standards.

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