Finance ministry puts out list of 9,500 'high risk' finance companies

NEW DELHI: The Financial Intelligence Unit (FIU) under the finance ministry has launched a list of nearly 9500 non-banking monetary firms (NBFCs) which have been labeled as 'top possibility monetary institutions'.
The listing launched via FIU-India on its website online displays the names of NBFCs which have been labeled 'top possibility' and found non-compliant to the Prevention of Money Laundering Act laws as on January 31.

See Full listing Here

After the November 2016 demonetisation of Rs 500 and Rs 1,000 notes, NBFCs and several rural and urban cooperative banks had come under the scanner of the income tax division and the Enforcement Directorate for illegally converting banned foreign money notes of people that had unaccounted income.


Many of those NBFCs and cooperative banks had been discovered converting banned foreign money notes via receiving money as deposits and issuing back-dated fixed deposits and cheques although the RBI had prevented them from taking such deposits.


As in keeping with the PMLA, all NBFCs must appoint a essential officer in the monetary establishment and document all suspicious and money transactions of Rs 10 lakh and above to the FIU. Section 12 of PMLA additionally calls for "every reporting entity to maintain records of all transactions and to verify the identity of their clients and their beneficial owners in the manner prescribed" to the FIU.


These entities also are required to maintain information of transactions and identity of shoppers for 5 years.


Finance ministry puts out list of 9,500 'high risk' finance companies Finance ministry puts out list of 9,500 'high risk' finance companies Reviewed by kailash soni on February 26, 2018 Rating: 5
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