- SEBI has proposed mandatory certification for principal officers and designated directors of market intermediaries regarding Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). - The certification aims to align Indian market intermediaries with evolving international AML/CFT standards and strengthen compliance frameworks. - The National Institute of Securities Markets (NISM) is proposed to be entrusted with conducting the certification examination or continuing professional education programs. - This move addresses vulnerabilities in financial markets against money laundering, terrorist financing, and illicit capital flows. - **SEBI:** The Securities and Exchange Board of India is the statutory regulatory body established in 1992 to protect investors' interests in securities and to regulate the Indian capital markets. - **Financial Action Task Force (FATF):** An inter-governmental body established to set global standards and promote effective implementation of legal and operational measures for combating money laundering and terrorist financing. - **Prevention of Money Laundering Act (PMLA):** India's premier anti-money laundering legislation enacted in 2002 to prevent money laundering, provide for confiscation of property derived from- or involved in- money laundering, and related matters. - **National Institute of Securities Markets (NISM):** A public trust established by SEBI in 2006 to build capacity and professional standards through mandatory certification examinations for securities market intermediaries and professionals. **Introduction** SEBI has proposed making Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) certification mandatory for principal officers and designated directors of market intermediaries. This initiative seeks to upgrade compliance standards, plug regulatory loopholes, and safeguard the financial market from abuse by illicit financial flows, terrorism financing, and money laundering activities. **Core Issue and Detailed Points** - SEBI has proposed mandatory certification for principal officers and designated directors of market intermediaries regarding Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). - The certification aims to align Indian market intermediaries with evolving international AML/CFT standards and strengthen compliance frameworks. - The National Institute of Securities Markets (NISM) is proposed to be entrusted with conducting the certification examination or continuing professional education programs. - This move addresses vulnerabilities in financial markets against money laundering, terrorist financing, and illicit capital flows. **Key Statutory Bodies, Acts & Concepts** - **SEBI:** The Securities and Exchange Board of India is the statutory regulatory body established in 1992 to protect investors' interests in securities and to regulate the Indian capital markets. - **Financial Action Task Force (FATF):** An inter-governmental body established to set global standards and promote effective implementation of legal and operational measures for combating money laundering and terrorist financing. - **Prevention of Money Laundering Act (PMLA):** India's premier anti-money laundering legislation enacted in 2002 to prevent money laundering, provide for confiscation of property derived from- or involved in- money laundering, and related matters. - **National Institute of Securities Markets (NISM):** A public trust established by SEBI in 2006 to build capacity and professional standards through mandatory certification examinations for securities market intermediaries and professionals.