The finance ministry on Thursday directed over 9,000 non-compliant Non-Banking Financial Companies (NBFCs) to register with Financial Intelligence Unit-India (FIU-IND) to fulfil the reporting requirements under the Prevention of Money Laundering Act (PMLA).
The PMLA imposes obligation on reporting entities (REs), including NBFCs, to verify identity of clients, maintain records and furnish information to FIU-IND.
The ministry, in a statement, 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, a division of the finance ministry, has published a list of 9,236 ‘non-compliant NBFCs’ which have not fulfilled their obligation under PMLA.
“As these unregistered NBFCs remain outside the reporting ambit of FIU-IND, they pose a risk to the integrity of the country’s financial system and therefore, FIU-IND has published the list of such ‘non-compliant NBFCs which have not fulfilled their obligation under PML Act and rules relating to non registration of Principal Officer’…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 FIU-IND would delete the names of NBFCs from the unregistered list once their registration process is completed and the list would be revised monthly, the ministry said.
To facilitate the filing of prescribed reports under PMLA, FIU has developed a portal called FINnet Gateway. The procedure for registration of RE and PO is available on the FIU-IND website.