The government has made changes to the KYC norms by revising the definition of Politically Exposed Persons (PEPs) in a partial modification. The Ministry of Finance has broadened the scope of the definition through a gazette notification to include individuals who are entrusted with public functions by a foreign country, such as heads of state or government, senior politicians, government, judicial or military officers, executives of state-owned corporations and important political party officials.
Furthermore, the Ministry has directed financial institutions like mutual fund and insurance companies to carry out due diligence of investments from non-profit organizations like NGOs. The ministry has stated that in the case of a non-profit organization being a client, every banking company or financial institution or intermediary must register the client’s details on the DARPAN Portal of NITI Aayog, if not already registered, and maintain the registration records for five years after the end of the business relationship or account closure, whichever is later.
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Categories: Mutual Fund
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