Home India Ministry of Finance Section 11A of the Money laundering Act, 2002...
Date: 14-Mar-2024 Category: Extra Ordinary State: Union Government Country: India

Section 11A of the Money laundering Act, 2002

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification permits the reporting entities mentioned in the table to perform authentication under the Aadhaar Act for the purposes of section 11A of the Prevention of Money-laundering Act (PMLA), 2002.
  • This permission is granted because the Central Government is satisfied that these reporting entities comply with the standards of privacy and security under the Aadhaar Act, 2016, and it is necessary and expedient to allow them to perform authentication.

Key Changes

  • Four reporting entities are now permitted to perform authentication under the Aadhaar Act for PMLA purposes.
  • The four entities are: Wealthstreet Financial Services Private Limited, Equal Identity Private Limited, Neo Wealth Management Private Limited, and SAMCO SECURITIES LIMITED.
  • The decision was made after consultation with the Unique Identification Authority of India (UIDAI) and the Securities and Exchange Board of India (SEBI).

Impact Analysis

Reporting Entities

  • Action Items: The reporting entities should integrate Aadhaar authentication into their systems and processes, ensuring compliance with the privacy and security standards outlined in the Aadhaar Act. They should also establish necessary agreements and protocols with UIDAI.

Customers of Reporting Entities

  • Considerations: It is important to ensure that customers are aware of their rights and the purpose for which their Aadhaar information is being used, maintaining transparency and data privacy.

UIDAI and SEBI

  • Action Items: UIDAI and SEBI should continue to monitor and audit the reporting entities to ensure adherence to the Aadhaar Act and PMLA regulations. They should also provide guidance and support to these entities as needed.

Government

  • Action Items: The government should monitor the effectiveness of this measure and make adjustments as needed to ensure that it is achieving its intended goals.

Key Entities Referenced

Unique Identification Authority of India (UIDAI): The statutory authority responsible for issuing Aadhaar numbers and regulating Aadhaar authentication. Securities and Exchange Board of India (SEBI): The regulator for the securities market in India. Central Government: The entity issuing the notification and granting permission for Aadhaar authentication under the PMLA. Wealthstreet Financial Services Private Limited: One of the reporting entities permitted to perform authentication under the Aadhaar Act. Equal Identity Private Limited: One of the reporting entities permitted to perform authentication under the Aadhaar Act. Neo Wealth Management Private Limited: One of the reporting entities permitted to perform authentication under the Aadhaar Act. SAMCO SECURITIES LIMITED: One of the reporting entities permitted to perform authentication under the Aadhaar Act. Prevention of Money-laundering Act, 2002 (PMLA): The primary legislation for combating money laundering in India. Section 11A deals with verification of identity of clients. Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016: The legislation governing the use of Aadhaar for targeted delivery of subsidies, benefits, and services. It also establishes the UIDAI.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-14032024-253004 CG-DxLx-xEG-I1D4H0x3x2x0 24-253004 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1273] नई दिल्ली, बृहस्ट्प जतिार, माच च14, 2024/फाल्ग नु 24, 1945 No. 1273] NEW DELHI, THURSDAY, MARCH 14, 2024/PHALGUNA 24, 1945 जित्त मत्रं ालय (रािस्ट्ि जिभाग) अजधसचू ना नई दिल्ली, 14 माच,च 2024 का.आ. 1339(अ).—केंद्रीय सरकार, धन-िोधन जनिारण अजधजनयम, 2002 (2003 का 15) (जिसे इसमें इसके पश् चात् धन-िोधन अजधजनयम कहा गया ह)ै की धारा 11क की उपधारा (1) के परंतुक द्वारा प्रित् त िज‍त यों का प्रयोग करते हुए, यह समाधान हो िाने पर दक नीच े सारणी में उजल् लजखत ररपोर्चकताच इकाईयां, आधार (जित् तीय और अन् य सहाजयदकयों, प्रसुजिधाओं और सेिाओं का लज‍य त पररिान) अजधजनयम, 2016 (2016 का 18) (जिसे इसम ें इसके पश् चात ् आधार अजधजनयम कहा गया ह)ै के अधीन गोपनीयता और सुरक्षा मानकों का पालन करेंगी और ऐसा करना आिश् यक तथा समीचीन ह,ै तथा आधार अजधजनयम की धारा 11 की उपधारा (1) के अधीन स्ट् थाजपत भारतीय जिजिष्र् पहचान प्राजधकरण और समुजचत जिजनयामक, अथाचत ् भारतीय प्रजतभूजत एि ं जिजनमय बोड,च स े परामिच करन े के पश् चात ् उक्त ररपोर्चकताच इकाईयों को धन-िोधन जनिारण अजधजनयम की धारा 11क के प्रयोिनों के जलए आधार अजधजनजयम के अधीन अजधप्रमाणन करन े के जलए अनज्ञु ात करती है, अथाचत् :- सारणी क्रम संखय ाकं ररपोर्कताच इकाई (1) (2) 1. िेल्थस्ट्रीर् फाइननें जसयल सर्िचस प्राइिेर् जलजमर्ेड 2. इक्वल आईडेंरर्र्ी प्राइिेर् जलजमर्ेड 1915 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 3. जनयों िैल्थ मैनेिमेंर् प्राइिेर् जलजमर्ेड 4. सेमकों जस‍योंरररर्ि जलजमर्ेड [सं. पी-12011/3/2022-ईएस सेल-डीओआर] मनोि कुमार ससंह, जनिेिक (मखु यालय) MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 14th March, 2024 S.O. 1339(E).—In exercise of the powers conferred by sub-section (1) of section 11A of the Prevention of Money-laundering Act, 2002 (15 of 2003) (hereinafter referred to as the Money-laundering Act), the Central Government on being satisfied that the reporting entities mentioned in the Table below comply with the standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) (hereinafter referred to as the Aadhaar Act), and it is necessary and expedient to do so, and after consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar Act and the appropriate regulator namely, the Securities and Exchange Board of India, hereby permits the said reporting entities to perform authentication under the Aadhaar Act for the purposes of section 11A of the Money- laundering Act, namely:- TABLE S. No. Reporting Entities (1) (2) 1 Wealthstreet Financial Services Private Limited 2 Equal Identity Private Limited 3 Neo Wealth Management Private Limited 4 SAMCO SECURITIES LIMITED [F. No. P-12011/3/2022-ES Cell-DOR] MANOJ KUMAR SINGH, Director (Headquarter) Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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