New Delhi: To check black money, the finance ministry on Thursday asked over 9,000 non-compliant NBFCs to register with FIU-IND to fulfil the requirements under the Prevention of Money Laundering Act (PMLA).
The Act imposes obligation on reporting entities’ including NBFCs to verify the identity of clients, maintain records and furnish information to FIU-IND.
The finance 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.
The list has also been published by FIU-IND so as to enable the bankers to conduct enhanced due diligence of the transactions carried out by such NBFCs.
“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.
