BSE has asked stock brokers to submit details on training programmes for their staff with respect to anti-money laundering and combating the financing of terrorism, for the past three fiscals, by June 19. Amid the crackdown on shell companies, the Finance Ministry has sought detailed information with respect to stock brokers in order to understand their compliance levels in terms of norms pertaining to curb money laundering and terror financing activities.
Following a directive from the Department of Economic Affairs, markets regulator Sebi, on June 1, had asked BSE to provide the relevant details of the stock brokers by June 20. Information has been sought with respect to “Anti-Money Laundering and Combating Financing of Terrorism (AML and CFT) areas to assess the technical compliance with the global FATF recommendations and effectiveness of AML/CFT systems”.
Complying with Sebi directions, leading exchange BSE has now asked stock brokers registered with it to provide the information by June 19. In the latest circular, BSE has asked stock brokers to submit the details of all three financial years – 2014-15, 2015-16, 2016-17 – latest by June 19, 2017. Stock brokers have to submit these details in a prescribed format separately for each financial year.
“In case, no training/certification has been obtained by employees of stock broker during any financial year, stock brokers are required to provide the relevant figure as ‘0’,” BSE said.
The brokers have to give information on total number of employees with the organisation, number of employees who acquired certification in AML/ CFT areas, percentage of employees who were imparted ‘in-house’ training in AML/CFT areas and percentage of employees found to be familiar with AML/CFT guidelines from surveys conducted, for each of the last three financial years.
Total number of employees include those in clerical and supervisory cadres up to the level of senior management but should exclude those in subordinate cadre as well as officials in top executive grades. “In-house training indicates learning sessions of a minimum one-hour duration on AML/CFT areas, conducted by the organisation for the benefit of their employees as part of their internal training programmes/ workshops,” BSE said.
“Employees found to be familiar with AML/CFT guidelines can be ascertained from conducting surveys across different verticals and geographies. The survey reports must include the size of the group studied. Copies of such survey reports should be attached with this return,” it added.
Financial Action Task Force (FATF), an inter-governmental body, sets global standards for anti-money laundering and countering the financing of terrorism regulations for governments worldwide. India has been its member since 2010. FATF’s recommendations are recognised as the global AML/CFT standard.