Here is the converted article in Markdown format:

Beneficial Owner of NBFCs Revealed: RBI Issues Guidelines for Know Your Customer (KYC) Norms

In a move aimed at preventing money laundering and terrorist financing, the Reserve Bank of India (RBI) has revealed the beneficial owner(s) of Non-Banking Financial Companies (NBFCs). The RBI has issued guidelines under Section 45K and 45L of the Reserve Bank of India Act, 1934, requiring NBFCs to know the true identity of their clients.

Guidelines for Professional Intermediaries

According to the guidelines, professional intermediaries like lawyers and chartered accountants cannot hold accounts on behalf of their clients if they are unable to disclose the true identity of the beneficial owner(s). Similarly, any professional intermediary who is under an obligation that inhibits the NBFC’s ability to know and verify the true identity of the client should not be allowed to open an account on behalf of a client.

Operational Guidelines for NBFCs

The RBI has also issued guidelines regarding the operation of deposit accounts with NBFCs and money mules. The regulator has warned that NBFCs can be used intentionally or unintentionally by criminal elements for money laundering or terrorist financing activities, and has advised them to strictly adhere to Know Your Customer (KYC) norms, Anti-Money Laundering (AML) standards, and Prevention of Money Laundering Act, 2002.

Countries with Strategic AML/CFT Deficiencies

The RBI has also identified certain countries that have strategic AML/ CFT deficiencies, including Iran, Democratic People’s Republic of Korea (DPRK), Sao Tome and Principe. The regulator has advised NBFCs to take into account the risks arising from these deficiencies. It has called upon its members to consider publicly available information for identifying such countries.

Effective Date

The guidelines were issued under Section 45K and 45L of the Reserve Bank of India Act, 1934, and are effective immediately.