IRDAI Circular of 21.11.2023 – Clarification of “without delay” for sanctions to Terrorism, Terror Financing & Proliferation Financing means “preferably on the same business day but not later than 24 hours in any case” for Section 12A of WMD Act, 2005 and UAPA 1967.
IRDAI Circular dated 21.11.2023 – Clarification of “without delay” in the context of all sections related to Terrorism and Terror Financing as well as Proliferation Financing means “preferably on the same business day but not later than 24 hours in any case” for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 and Section 51A of Unlawful Activities (Prevention) Act, 1967.
Background
All the financial institutions shall run a check on the given parameters at the time of establishing a relation with a customer and on a periodic basis to verify whether individuals and entities in the designated list are holding any funds, financial assets or economic resources or related services held in bank accounts, stocks or insurance policies, etc.
By the Order dated 30.1.2023, the procedure for implementation of Section 12A of the “Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. Consequently, the IRDAI issued the Circular dated 19.4.2023 for implementation of the said Order.
By the Order dated 1.9.2023, the procedure for implementation of Section 12A of the “Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005, the earlier Order dated 30.1.2023 is superseded.
IRDAI Circular dated 9.10.2023 – Prevention of financing to WMD – duty of stake holders to prevent financing and verification on periodic basis
Consequently, IRDAI has now issued Circular dated 9.10.2023
Amendments of 10.10.2023 to the Master guidelines – Insurers to take reasonable measures and to lay down risk management procedures.
Now by OM dated 20.10.2023, it is clarified that without delay means the sanction should be given on the same business day or in 24 hours.
