Sebi bid to plug MF route terror funding

Last Updated: Friday, December 11, 2009 - 23:57

Mumbai: To track terror funding, market
regulator Sebi on Friday asked mutual fund distributors to ensure
that they have all the records of their customers.
As part of its norms on anti-money laundering and
combating financing of terror, Sebi asked MF distributors to
ensure that all the investor-related documents are maintained/
available with them.

"It is prescribed that it is the responsibility of the
intermediaries to ensure customer due diligence by obtaining
sufficient information to identify persons, have a policy in
place for acceptance of clients and client identification
procedure, monitoring of transactions etc," Sebi said in a
statement issued here today.
The regulator said it has come to know that all the
documentation related to the investor including know-your-
client, power of attorney in respect of transactions/requests
made through some MF distributors is not available with the
asset management companies.

The regulator has also said in case the documentation is
not complete, the MF trustees should not make further payment
of any commissions, fees or payments in any other mode to such
distributors till full compliance is done.

In such case they should also take immediate steps to
obtain all supporting documents in respect of the past
transactions and also on a one time basis, send statement of
holdings and all transactions since inception of that folio in
duplicate to the investor and seek confirmation from the unit
holders on the duplicate copy.


First Published: Friday, December 11, 2009 - 23:57

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