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Ch.4 · SEBI Mutual Fund Regulations · medium

Which legislation governs Anti-Money Laundering (AML) obligations for mutual funds in India?

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EXPLANATION

The Prevention of Money Laundering Act, 2002 (PMLA) governs AML obligations in India. Mutual funds are classified as 'reporting entities' under PMLA and must maintain KYC records, report suspicious transactions, and file Cash Transaction Reports (CTRs).

A.Foreign Exchange Management Act, 1999

B.Prevention of Money Laundering Act, 2002 [✓ Correct]

C.Income Tax Act, 1961

D.SEBI Act, 1992

EXPLANATION

The Prevention of Money Laundering Act, 2002 (PMLA) governs AML obligations in India. Mutual funds are classified as 'reporting entities' under PMLA and must maintain KYC records, report suspicious transactions, and file Cash Transaction Reports (CTRs).

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