Centre Makes It Mandatory For NGOs To Reveal Details Of Assets Created Out Of Foreign Contributions

In a notification, the Union Government introduced the Foreign Contribution (Regulation) Amendment Rules, 2023 requiring NGOs to furnish details regarding assets bought by foreign contributions.

The Ministry of Home Affairs (MHA) has implemented significant changes to the Foreign Contribution (Regulation) Rules, requiring non-governmental organisations (NGOs) to furnish comprehensive information regarding both movable and immovable assets funded by foreign contributions as of March 31 of the Financial Year. In a notification issued on September 22, the Union Government introduced the "Foreign Contribution (Regulation) Amendment Rules, 2023".

The official notification, shared by news agency ANI, states, "The Central Government hereby makes the following rules further to amend the Foreign Contribution (Regulation) Rules, 2011, namely:- (1) These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette."

"In the Foreign Contribution (Regulation) Rules, 2011, in Form FC-4, in serial number 3, after clause (b), the following shall be inserted, namely:- "(ba) Details of movable assets created out of foreign Contribution (as on 31st March of Financial Year)," it adds.

As per the notification, NGOs will have to provide details like description of the assets, Value as of the beginning of the Financial Year (in Rs.), Value of assets acquired during the Financial Year (in Rs.), Value of assets disposed of during the Financial Year (in Rs.), Value as per the balance sheet at the end of the Financial Year (in Rs.).

They will also be required to reveal details of immovable properties acquired out of foreign contribution (as on 31st March of Financial Year), Details of immovable asset (Land /Buildings etc.), Size, Location (Complete address), Value as per the balance sheet (in Rs.).

Previously, the government had brought modified rules under the anti-money laundering law, making it mandatory for banks and financial institutions to record financial transactions of politically exposed persons (PEP).

The amended rules required financial institutions or reporting agencies to collect information on the financial transactions of non-profit organisations under PMLA.

The institutions also have to register the details of their NGO clients on Darpan portal of Niti Aayog and maintain the record for five years after the agreement between a client and a reporting entity has ended or the account has been closed.

Subscribe And Follow ABP Live On Telegram: https://t.me/officialabplive