AML and CFT Provisions in Securities Markets book by National Institute of Securities Markets

AML and CFT Provisions in Securities Markets is an authoritative guide that lays down the foundational and advanced concepts around Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) provisions in the Indian securities market. This workbook facilitates a deep understanding of the prevention of money laundering, regulatory compliance, and the broader legal framework governing securities intermediaries. It is a core study resource for individuals preparing for the NISM Certification Examination on AML and CFT Provisions while acting as a practical reference guide for industry professionals.

This book is intended for the following audience:

• Aspiring Professionals and Students – Those seeking to enter the securities market industry and looking to clear the NISM AML–CFT Certification Examination
• Industry Practitioners – Employees of stock exchanges, brokerages, mutual fund houses, compliance teams, and other financial intermediaries who require an in-depth understanding of AML and CFT guidelines
• Compliance and Legal Teams – Legal and compliance personnel responsible for creating, implementing, or auditing AML–CFT policies within their organisations
• Academicians and Researchers – Educators and researchers examining the evolving landscape of financial crime prevention and risk management in securities markets

The Present Publication is the January 2025 Workbook Version, developed in collaboration with the Certification Team of NISM and Ms Monica Sachdeva & reviewed by Dr Shreyas Vyas. It is published exclusively by Taxmann, with the following noteworthy features:

• [Official NISM Resource] Authored and reviewed by domain experts, ensuring alignment with the standards and requirements of the NISM certification examination
• [Comprehensive Coverage] Explains key legislation, rules, and guidelines, including the Prevention of Money Laundering Act (PMLA), SEBI regulations, and related case studies
• [Lucid Explanation of Concepts] Simplifies complex statutory provisions, enabling easy comprehension by readers with varying levels of familiarity with financial regulations
• [Practical Guidance] Examples and case discussions illustrate how AML, CFT, and Proliferation Financing (PF) regulations apply in the daily operations of intermediaries
• [Exam-focused Learning] Includes a structured syllabus outline to help readers focus on examination-specific content and prepare strategically

The coverage of the book is as follows:

• Foundational Concepts
  • Introduces AML, CFT, and Proliferation Financing (PF), their global and Indian initiatives, and the processes of money laundering
• Prevention of Money Laundering Act (PMLA)
  • In-depth exploration of the Act's provisions, reporting obligations, and the roles of regulatory authorities such as FIU-IND and SEBI
• Maintenance of Records Rules
  • Detailed discussion on the Prevention of Money-laundering (Maintenance of Records) Rules 2005, covering the record-keeping process and digital KYC norms
• Scheduled Offences
  • Examination of relevant offences under various laws, including the SEBI Act and the Companies Act, highlighting how they relate to AML/CFT
• Guidelines & Regulatory Framework
  • Anti-Money Laundering (AML) and CFT Standards
  • Combating the Financing of Terrorism (CFT) and Proliferation Financing (PF)
  • SEBI Guidelines – A comprehensive look at SEBI's frameworks for AML–CFT compliance, written AML procedures, and operational guidelines for intermediaries
• Know Your Client (KYC) Norms
  • A step-by-step outline of KYC procedures, including online KYC apps, SARAL account opening forms, and KYC Registration Agencies
• Case Studies
  • Practical precedents and regulatory actions (e.g., FIU-IND vs. Way2Wealth Brokers, SEBI vs. SKSE Securities, Paytm Payments Bank, etc.) providing insight into enforcement and compliance lapses

The structure of the book is as follows:

• Eight Thematic Chapters – Organised into Parts A and B, each delving into a specific facet of AML–CFT regulations. The chapters progress logically from foundational overviews (Chapter 1) to detailed rule-based coverage (Chapters 2 and 3), scheduled offences (Chapter 4), guidelines (Chapters 5 and 6), and KYC-specific mandates (Chapter 7). The final chapter (Chapter 8) focuses on practical case studies
• Practice-oriented Approach – Flowcharts, practical examples, and recommended best practices are integrated throughout to guide practical implementation and examination readiness
• Syllabus Outline & Assessment – Concludes with detailed chapter-wise weightage, ensuring learners can align their study strategy with exam requirements