Aadhaar authentication permitted for specified reporting entities to fulfil anti-money laundering compliance requirements.
Permission is granted to specified reporting entities to perform Aadhaar authentication for the purposes of compliance with the Prevention of Money laundering Act, 2002, conditional on adherence to privacy and security standards under the Aadhaar Act and following consultation with the Unique Identification Authority and the appropriate regulator.

Regulator definition clarified: Director, Financial Intelligence Unit, India designated as regulator for reporting activities under PMLA.
The notification renumbers the prior Explanation as Explanation 1 and inserts Explanation 2, which defines the term Regulator for the specified activities to mean the Director, Financial Intelligence Unit, India appointed under the Act for purposes of the Prevention of Money laundering (Maintenance of Records) Rules, 2005.

Definition of Regulator clarified: Director of the Financial Intelligence Unit designated as regulator for specified PMLA activities.
Amendment renumbers the existing Explanation as Explanation 1 and inserts Explanation 2 declaring that, for the activities specified in the notification, the Regulator shall be the Director, Financial Intelligence Unit, India appointed under the Act, thereby identifying the authority responsible for regulatory oversight under the PMLA notification.

Client due diligence strengthened: mandatory reliable independent identification and group-wide AML information-sharing with confidentiality safeguards.
The rules require reporting entities to verify clients and beneficial owners by using reliable and independent sources of identification, obtain purpose and nature-of-relationship information, and implement group-wide AML and terror finance programmes with policies for protected intra-group information sharing and safeguards against tipping-off.

Special Court designation under the Prevention of Money Laundering Act revises territorial trial allocations for offences under the Act.
An amendment under the Prevention of Money Laundering Act substitutes the Bihar entry in the notified Schedule, designating two Special Courts in Patna and specifying their respective territorial districts for trial of offences under the Act, thereby revising the territorial allocation previously published in the Gazette.

Appointment of administrators to manage and dispose of confiscated property under anti-money laundering law, superseding prior notification.
Special Directors of the Regional Offices of the Directorate of Enforcement are appointed as Administrators to receive, manage and dispose of property confiscated under specified provisions of the Prevention of Money laundering Act; the appointment is made under section 10 read with section 51, supersedes the earlier 2012 notification insofar as applicable, and the Administrators shall be governed by the Act and the Prevention of Money laundering (Receipt and Management of Confiscated Properties) Rules, 2005.

Aadhaar authentication permitted for specified reporting entities under PMLA after meeting Aadhaar privacy and security standards.
Permission is granted to specified reporting entities to perform Aadhaar authentication for purposes of the Prevention of Money laundering Act, conditioned on compliance with the privacy and security standards under the Aadhaar Act following consultation with the Unique Identification Authority and the appropriate regulator; the notification lists the authorised reporting entities and limits the authorisation to continued adherence to those standards.

Beneficial ownership and control rules amended: threshold lowered, control definition broadened and trust disclosures required.
The rules amend CDD and record-keeping: the reporting officer must be at management level; rule 9 lowers the ownership/control threshold and adds persons who "exercise control through other means," defining control as the right to direct management or policy; trusts must have trustees disclose status at account commencement or when specified transactions occur; rule 10 records must include correspondence and the results of analysis conducted under rule 3 and rule 9.

Inclusion of Goods and Services Tax Network expands designated entities under the Prevention of Money laundering Act to enable statutory cooperation.
The Central Government, under section 66(1)(ii) of the Prevention of Money laundering Act, 2002, amends notification G.S.R. 381(E) dated 27th June 2006 by inserting Goods and Services Tax Network as a new entry (serial number (26)) through G.S.R. 491(E) dated 7th July 2023, thereby including the Network among the entities specified in that notification.

Money laundering prevention: specified corporate and trust intermediary activities for others now fall within regulated obligations.
Notification treats specified corporate and trust services carried out in the course of business on behalf of or for another person as activities within the Prevention of Money-laundering framework, including formation agent services, arranging persons to act as directors or partners, providing registered or administrative addresses, trustee functions, and nominee shareholder roles, while excluding lease-related activities with tax deduction, employee acts for employers, limited filings by certain practicing professionals, and activities defined as intermediary; the Director of the Financial Intelligence Unit, India is designated as the regulator for these activities.

Aadhaar authentication permitted for designated non-banking reporting entities to enable identity verification under anti-money laundering rules.
The Central Government permits the listed non banking reporting entities to perform Aadhaar authentication for identity verification under section 11A of the Prevention of Money Laundering Act, contingent on compliance with the privacy and security standards of the Aadhaar Act and following consultation with the Unique Identification Authority of India and the Reserve Bank of India.

Reportable professional transactions: client-facing financial activities by practicing accountants and secretaries classified as PMLA activity.
Central Government notifies that financial transactions carried out by specified practicing professionals on behalf of clients-including immovable property transactions, management of client money, securities or accounts, organising contributions for company formation, and creation or management of companies, LLPs or trusts-are activities within the meaning of the relevant PMLA provision. "Relevant person" is defined to include individuals holding certificates of practice as chartered accountants, company secretaries, or cost and works accountants, whether practicing individually or through a firm, with "firm" given the Income tax Act meaning.

Group-wide anti-money laundering policies required; new definitions and expanded record keeping and registration duties introduced covering non-profit organisations and PEPs.
Amendments revise definitions to include group, a narrowed Non-profit organization definition, and an explicit PEPs definition; mandate implementation of group-wide policies under Chapter IV of the PMLA; expand rule 9 to require additional identity and address particulars (including senior management names), reduced numerical thresholds in specified explanations, registration of non-profit clients on the DARPAN Portal with five-year retention, and a 30-day update obligation for client-submitted documents; and broaden the scope of persons purporting to act for juridical persons, individuals, or trusts.

Virtual digital asset activities specified as reportable under PMLA when carried out for or on behalf of another person.
The notification designates five services related to virtual digital assets-exchange with fiat currencies, exchange between virtual digital assets, transfer, safekeeping or administration (including control enabling instruments), and participation in issuer offers-as activities that, when carried out for or on behalf of another person in the course of business, qualify as reportable designated business under the Prevention of Money Laundering Act; it adopts the Income tax Act definition of virtual digital asset and identifies the Director, Financial Intelligence Unit, India as the regulator for maintenance of records purposes.

Designation of Special Courts under PMLA expands Assam court listings to include specified Special Judge and Additional CBI courts.
Amendment to the PMLA notification substitutes the earlier entry for Assam to designate the Court of Special Judge, Assam, Guwahati, and three Additional Central Bureau of Investigation Courts (Court No. 1, Court No. 2 and Court No. 3, Assam, Guwahati) as Special Courts for the State of Assam, confirming their jurisdiction to try offences under the Prevention of Money laundering Act and reflecting consultation with the acting Chief Justice of the Gauhati High Court.

Aadhaar authentication authorised for specified reporting entities to enable identity verification under PMLA compliance.
Authorises the listed reporting entities to perform Aadhaar authentication for the purposes of section 11A of the Prevention of Money-laundering Act, 2002, on the basis that they comply with the privacy and security standards under the Aadhaar Act, following consultation with the Unique Identification Authority of India and the securities regulator.