The Pension Fund Regulatory and Development Authority (PFRDA) issued a “Master Circular” on 12th April, 2024 regarding the “Guidelines on Know Your Customer / Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT)” for all Point of Presence (POPs) and NPS Trust.
The circular aims to consolidate existing instructions related to KYC/AML/CFT guidelines and provides comprehensive guidelines for the prevention of money laundering and combating the financing of terrorism in respect of pension schemes regulated and administered by the Authority.
It outlines the requirements and obligations for reporting entities, emphasizing the need for robust KYC/AML/CFT programs, policies, procedures, and controls to prevent and impede money laundering and terrorist financing activities.
The circular also addresses the appointment of Designated Director and Principal Officer, recruitment and training requirements, risk assessment and categorization, sharing KYC information with the Central KYC Records Registry, reliance on third-party KYC, pension accounts of Politically Exposed Persons (PEPs), and reporting obligations, including record-keeping and monitoring of transactions. The circular also provides annexures containing circular numbers, subjects, and dates, along with a list of circulars consolidated in the Master Circular.
Annexure I contains the list of circulars consolidated in the Master Circular on Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT). Annexure II includes the list of circulars rescinded from time to time and archived. These annexures provide a comprehensive overview of the circulars and guidelines subsumed under the Master Circular, as well as those that have been rescinded and archived.
