FPIs seek six more months from FinMin to comply with PMLA tweaks

To make a representation to FinMin for relief

Foreign portfolio investors (FPIs) are likely to seek from the finance ministry a six-month extension of the date for complying with the amendments to the Prevention of Money-Laundering Act (PMLA), citing implementation challenges.

Sources said FPIs, through their custodians, were planning to approach the ministry, highlighting key concerns and seeking more clarification.

The ministry, through a notification on March 7, lowered the threshold for reporting ultimate beneficial ownership (UBO) for non-profit organisations and politically exposed persons to 10 per cent from 25 per cent. Earlier, the 10 per cent threshold was applicable only to entities in high-risk jurisdictions.

Further, FPIs