As per the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2023 dated 7th March 2023, there have been revisions to the definitions of Non-Profit Organizations (NPOs) and Ultimate Beneficial Owners (UBOs).
NPO Definition Update:
The updated definition of “Non-profit organization” now refers to any entity or organization formed for religious or charitable purposes as stated in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961). This entity should be registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860), or any State Legislation or Company under section 8 of the Companies Act, 2013 (18 of 2013).
Action Required for NPOs:
In light of this, we kindly request all NPOs to confirm their status by submitting the declaration form. Please ensure the form is duly filled and signed by the Authorized Signatories. Additionally, please provide confirmation of your NPO registration with the DARPAN portal. You can download the declaration form here
UBO Ownership Percentage Update:
Furthermore, the amendment has revised the percentage of controlling ownership interest for classifying as Ultimate Beneficial Owner (UBO). The threshold has been changed from 25% to 10% for Corporate and 15% to 10% for Trusts.
Action Required for UBOs:
To comply with this change, we urge you to update your UBO information. Please fill out the form and ensure it’s signed by the Authorized Signatories. Should there be no individual holding such controlling interest, senior management individuals (e.g., CEOs or MDs) are to be considered as UBOs, and their details must be provided. You can download the UBO declaration form here
It has been deemed mandatory to submit the hard copies of the above mentioned documents. Please send the duly filled and signed forms to the below address.
We emphasize that non-submission of the NPO and UBO declaration form by 31st August 2023 may result in restrictions on financial transactions within your existing & new Folio(s).
Address
Wealth India Financial Services Pvt. Ltd.,
3rd Floor, Uttam Building, No. 38 and 39,
Whites Road, Royapettah,
Chennai,
Tamil Nadu- 600014
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