On May 25, IND NSD updated on registration of reporting entities.
IND NSD updated on registration of reporting entities in FINnet 2.0 of IND FIU.
Follows email from SEBI dated May 23, 2022 that stated that IND FIU has now initiated the fresh registration of the REs in FINnet 2.0 system from Jan. 19, 2022.
Registration
All REs registered in FINnet 1.0 must re-register themselves in FINnet 2.0 module.
Section 2 of PMLA defines depository participants as reporting entities to IND FIU.
As part of the re-registration exercise REs are required not only to register principal officer but the details of designated director also need to be provided.
Any new RE who wishes to register with IND FIU needs to get registered on FINnet 1.0 and 2.0 as report filing is still to be done on FINnet 1.0 until 2.0 is fully functional.
Participants must take note and complete registration in FINnet 2.0 system ASAP.
May 2022 Other Regulators
On May 27, 2022, IND BSE, NSE, CDSL asked participants to comply with registration.
Sep. 2022 Registration Reminder
On Sep. 9, 2022, IND CDSL reminded reporting entities to register on FINnet 2.0.
Once FINnet 2.0 becomes operational, REs will not be able to file STR in FINnet 1.0.
Also, depository participants (DPs) advised to get registered on FINnet 2.0 before Sep. 30, 2022, otherwise it will be treated as non-compliance of the RE’s under PMLA.
Any DP facing any issues while registering on FINnet 2.0, contact IND FIU helpdesk.
Sep. 2022 Other Regulators
On Sep. 12, 2022, IND BSEIND NSE issued releases re IND FIU communication dated Sep. 8, 2022, re-registration of reporting entities (REs) in FINnet 2.0 system.
IND FIU mandated re-registration in FINnet 2.0 for reporting suspicious transactions under r. 7(3) of Prevention of money laundering (maintenance of records) rules, 2005.
Registration of stockbrokers (trading members) progress in FINnet 2.0 not satisfactory.
The new reporting platform under FINnet 2.0 is expected to be live very soon.
REs including stockbrokers registered in the FINnet 1.0 system are required to re-register themselves in FINnet 2.0 system by Sep. 30, 2022; mandatory requirement.
Confirmation required that members are aware of supplementary guidelines by IND FIU to principal officers of REs and taken relevant steps to implement guidelines.
Trading members advised to provide IND BSE confirmation of receipt of IND FIU communication and status of implementation of supplementary guidelines.
Nov. 2022 Registration Reminder
On Nov. 7, 2022, IND BSE noted FIU concerns regarding the poor progress of the registration of stock-brokers into FINnet 2.0 system ahead of the system going live.
IND BSE reminded stakeholders that once the reporting platform under FINnet 2.0 becomes operational, REs will not be able to use the reporting platform of FINnet 1.0.
All registered stock-brokers are advised to provide the status of their registration via email provided to IND BSE with the subject line: registration in FINnet 2.0 system.
Nov. 2022 Registration Deadline
On Nov. 9, 2022, IND CDSL adviseddepository participants (DPs) to register on FINnet 2.0 before Nov. 15, 2022 without fail, otherwise it will be treated as non-compliance with reporting entity’s obligations under Prevention of money laundering act (PMLA).
Once the reporting platform under FINnet 2.0 becomes operational, reporting entities will not be able to file suspicious transaction reports (STR) on the FINnet 1.0 platform.
Nov. 2022 Compliance Warning
On Nov. 10, 2022, IND NSE issued a compliance warning on the registration of reporting entities (REs) in FINnet 2.0, and re IND FIU's supplementary guidelines.
IND NSE noted that IND FIU has raised serious concerns regarding the poor progress of the registration of stockbrokers (trading members) in the FINnet 2.0 system.
Informed that reporting platform under FINnet 2.0 is expected to be live very soon.
Once reporting platform under FINnet 2.0 is operational, REs will not be able to file any STRs in reporting platform of FINnet 1.0; said that all registered stockbrokers (trading members) must get themselves registered in FINnet 2.0 by Nov. 15, 2022.
Failure to do so will be treated as non-compliance with RE's obligations under PMLA.
In Dec. 2022, IND NSD issued reminder about supplemental guidelines, see #156806.
Jun. 2024 IND NSE Registration Reminder
On Jun. 20, 2024, IND NSE issued circular re registration of lines of business (LOBs).
According to IDN SEBI's master circular dated Jun. 06, 2024, securities market intermediaries are required to report cash and suspicious transactions to IND FIU.
All intermediaries registered with IND SEBI or other regulators must register on FINNET 2.0; intermediaries need to update all their lines of business on FINNET 2.0.
Follows IND SEBI Jun. 2024 issued master circular on AML/CFT guidelines, #214966.
Oct. 2024 IND CDSL RE Type category
On Oct. 16, 2024, IND CDSL said IND FIU communicated previously that RE Type field is crucial during FINnet 2.0 enrolment process; some REs have registered incorrectly.
IND FIU may consider making one-time corrections; DPs are thus advised to review their RE Type in FINgate_2.0 portal and confirm if corrections are needed.
Correction requests must be made to IND FIU using format included by Oct. 31, 2024.
Regulators
IND BSE; IND CDSL; IND FIU; IND NSD; IND NSE
Entity Types
B/D; Corp; Depo; Exch
Reference
Com CDSL/PMLA/DP/POLCY/2024/616, 10/16/2024; Com NSE/COMP/ 62541, 6/20/2024; Com NSE/COMP/54354, 11/10/2022; Com CDSL/PMLA/DP/POLCY/2022/648, 11/9/2022; Ntc 20221107-50, 11/7/2022; Cir 65/2022; Ntc 20220912-63, 9/12/2022; Comm CDSL/OPS/DP/POLCY/2022/518, 9/9/2022; Ntc 20220527-56, Cir NSE/INSP/52438, Comm CDSL/OPS/DP/POLCY/2022/288, 36/2022, 5/27/2022; Cir NSDL/POLICY/2022/074, 5/25/2022
