BSE asks brokers to file training programme details on AMT/CFT

The BSE today asked stock brokers to submit details on training programmes for their staff with respect to anti-money laundering and combating financing of terrorism (AML/CFT), for the past three financial years.
The direction comes following a Sebi communication on June 1 to BSE asking it to provide the details as sought by Department of Economic Affairs - Ministry of Finance with regard to the stock brokers by June 20.
According to the notice by BSE today, the details are related to AML/CFT areas to assess the technical compliance with the Financial Action Task Force (FATF) recommendations and effectiveness of AML/CFT systems.

The brokers are required to file the information for 2014-15, 2015-16 and 2016-17.
"Stock brokers are advised to keep the details ready as required in the format separately for each financial year," BSE said.
"The said details are required to be submitted through BEFS (BSE Electronic Filing System)," it added.

The brokers are required to be give information on total number of employees with the organisation, number of employees who acquired certification in AML/ CFT areas, per- centage of employees who were imparted 'in-house' training in AML/CFT areas and per centage of employees found to be familiar with AML/CFT guidelines from surveys conducted, for each of the last three financial years.

Total number employees include those in clerical and supervisory cadres upto 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.

FATF sets global standards for anti-money laundering and countering financing of terrorism regulations for governments across the world. India has been its member since 2010.
FATF's recommendations are recognised as the global AML/CFT standard.