The Ministry of Finance on 4th January 2022 has notified that the provisions of sub-rule (1A) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 shall not apply to the Foreign Portfolio Investor.
Rule 9 deals with verification of the records of the identity of clients in which sub rule (1A) which states the following, shall not be applicable to the foreign portfolio investor.
Every banking company, financial institution and intermediary, as the case may be, shall determine whether a client is acting on behalf of a beneficial owner, identify the beneficial owner and take all reasonable steps to verify his identity.
Explanation .—For the purposes of this sub-rule “beneficial owner” shall mean the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person.
