Section 53A: New products, business practices, delivery

53A. New products, business practices, delivery mechanisms and technologies Every financial institution and every holder of a licence shall, in relation to the development of new products and new business practices, including new delivery mechanisms, and the use of new or developing technologies for both new and pre-existing products – (a) undertake a risk assessment prior to the launch or use of such products, business practices and technologies; (b) identify and assess the money laundering and terrorism financing risks that may arise in relation to the launch or use of such products, business practices and technologies; and 242 Acts 2018 (c) take appropriate measures to manage and mitigate the risks identified. (k) in section 64 – (i) by inserting, after subsection (1), the following new subsections – (1A) Any person – (a) to whom any information pertaining to a customer or financial institution is disclosed and who knows or has reasonable grounds to believe, at the time of the disclosure, that the information was disclosed to him in contravention of this section; (b) who is in possession of information relating to the affairs of a customer or financial institution without just or reasonable grounds or in contravention of this section; or (c) who publishes, in any form whatsoever, any information relating to the affairs of a customer or financial institution without the express written consent of the customer or financial institution or in contravention of this section, shall commit an offence and shall, on conviction, be liable – (i) in the case of an individual, to a fine not exceeding 500, 000 rupees and to imprisonment for a term not exceeding 3 years; or Acts 2018 243 (ii) in any other case, to a fine not exceeding one million rupees. (1B) Where a person is prosecuted for an offence under subsection (1A)(a) or (b), it shall be a defence for the person to prove that – (a) the disclosure was made without his consent; (b) where the disclosure was made in a written form, he, as soon as practicable, surrendered or took all reasonable steps to surrender the information and all copies thereof to the central bank; and (c) where the disclosure was made in an electronic form, he, as soon as practicable, took all reasonable steps to ensure that all electronic copies of the information were deleted and that the information and all copies thereof in other forms were surrendered to the central bank. (ii) in subsection (3) – (A) by inserting, after paragraph (f), the following new paragraphs – (fa) the information is required to be disclosed by the financial institution for the purpose of discharging its responsibilities under Part VIIIA; (fb) with respect to payablethrough accounts, the customer due diligence 244 Acts 2018 information is required to be disclosed, upon request, by the financial institution to another institution with which it maintains a correspondent banking relationship, provided that the institution has given to the financial institution a written undertaking regarding the confidentiality of the information provided; (fc) the customer due diligence information is required to be disclosed by the financial institution for the purpose of meeting the requirement set out by the central bank with respect to domestic or cross-border wire transfers or reliance on a third party; (B) in paragraph (i), by inserting, after the word “Bureau”, the words “or the Central KYC Registry”; (iii) in subsection (8), by inserting, after the words ion a written undertaking regarding the confidentiality of the information provided; (fc) the customer due diligence information is required to be disclosed by the financial institution for the purpose of meeting the requirement set out by the central bank with respect to domestic or cross-border wire transfers or reliance on a third party; (B) in paragraph (i), by inserting, after the word “Bureau”, the words “or the Central KYC Registry”; (iii) in subsection (8), by inserting, after the words “functions of a central bank”, the words “or a foreign supervisory authority having the responsibility of carrying out supervisory functions in respect of money laundering or terrorism financing”; (iv) in subsection (14) – (A) by deleting the word “confidentiality” and replacing them by the words “confidentiality, and subject to the satisfaction of such conditions as the central bank may determine”; Acts 2018 245 (B) by adding the following new paragraph, the full stop at the end of paragraph (b) being deleted and replaced by a semicolon – (c) to a domestic or foreign supervisory authority where the information is required by the supervisory authority for the sole purpose of carrying out its supervisory functions in respect of money laundering or terrorism financing. (l) by inserting, after Part VIII, the following new Part – PART VIIIA – PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING