December 18 2015
Inspections on AML/CFT related issues SEBI has appropriately included AML/CFT risks as part of its inspection of intermediaries such as stock brokers, depository participants and mutual funds. SEBI also carried out specific theme based inspections of intermediaries focusing on compliance with KYC norms (which includes client due diligence) and AML/ CFT guidelines. In 2014-15, with respect to stock brokers SEBI carried out 35 and 24 special purpose inspections to check their compliance with AML/CFT and KYC norms respectively. Further, with respect to depository participants, 21 and 15 inspections were carried out to verify compliance with AML/ CFT and KYC norms respectively. With regard to portfolio managers, SEBI officials visited the entities for verification of compliance with KYC norms before granting registration/renewal of registration. With respect to mutual funds, 30 inspections were carried out wherein compliance with AML/CFT and KYC related norms was reviewed. (page 118)