Section 35D: Non-Profit Organisation or Regulatory Body

1) The body that registers, binds or regulates a non-profit organisation in accordance with the prevailing law shall act in accordance with the following in relation to the prevention of financial investment in the purification of property or the creation and expansion of terrorist acts or weapons of mass destruction:

(a) To make necessary arrangements so that the property of the non-profit organisation may not be used in the purge or terrorist acts or the manufacture and proliferation of weapons of mass destruction or any other act contrary to this Act,

(b) to provide the Financial Information Unit with suspicious information regarding financial investments in the creation and expansion of weapons of mass destruction or terrorist acts,

(c) To make the functioning of a non-profit organisation transparent and credible by establishing or enforcing the necessary criteria to identify the persons or groups benefiting from such organisations;

(d) To assess and manage sectoral and institutional risks;

(e) To carry out or cause to be evaluated the effectiveness in accordance with this Act in order to assess the costs incurred by the relevant institution on the basis of the risk of action in relation to the financial investment in asset laundering and terrorist acts,

(f) To supervise, monitor or monitor on the basis of risk.

2) In accordance with the prevailing law, the regulatory body of the non-profit organisation may give necessary instructions to the concerned non-profit organisation regarding the activities pursuant to sub-section (1).

3) It shall be the duty of the institution concerned to comply with the directions given pursuant to sub-section (2).

4) A non-profit organisation that does not comply with the instructions given by the binding body in accordance with sub-section (2) shall be sent in writing to the regulatory body of such organisation to take action, and if not, to the registering body of such organisation.

5) A non-profit organisation that does not comply with the instructions given pursuant to sub-section (2) may be fined up to five lakh rupees for the first time by the regulating body of such organisation and, in case of failure, up to ten lakh rupees may be fined by the registering body of such organisation.