BSE Notice No – 20250814-39 dated August 14, 2025
Applicable Act/Rule – Prevention of Money Laundering Rules, 2005
The Financial Action Task Force (FATF) released a report titled “Complex Proliferation Financing and Sanctions Evasion Schemes (CPFSES)” on June 20, 2025. The report, prepared by the Risk, Trends and Methods Group, consolidates global insights, strategies, typologies, and lessons on proliferation financing and sanctions evasion practices. SEBI, via BSE communication, has circulated this update for compliance reference.
While the findings of the FATF report may not all directly apply to India, SEBI has emphasised that intermediaries should pay special attention to jurisdictions highlighted as high-risk from a proliferation financing (PF) perspective. These include:
Intermediaries are advised to update their Institutional Risk Assessments under Rule 9(13) of the PML Rules, strengthen compliance mechanisms, and revise their internal risk policies accordingly.
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