SEBI Directs Intermediaries to Centralize FATCA and CRS Certifications at KYC Registration Agencies

Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12; Dated: 20.02.2024

To promote ease of doing business and compliance reporting, SEBI suggests measures for the centralization of certifications under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration Agencies.

As per the new norms, SEBI has directed the intermediaries, who are reporting to financial institutions (RFI), to upload the FATCA and CRS certifications obtained from the clients onto the system of KRAs with effect from July 01, 2024.

Further, the existing certifications obtained from clients prior to July 01, 2024 must be uploaded by the intermediaries onto the systems of KRAs within a period of 90 days of the implementation of this circular. The onus of obtaining and reporting the FATCA and CRS certification and related compliances must lie with the respective intermediaries.

The intermediary must confirm the reasonableness of such certification based on the information obtained in respect of account opening, including any documentation obtained in accordance with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 and must update the self-certification, as and when, there is a change reported by the client.

Also, the KRAs must develop their systems/mechanisms in coordination with each other and follow uniform internal guidelines/standards, in consultation with the SEBI.

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