The watchdog Sebi today tightened norms aimed at countering money laundering and terror financing through the capital markets. Sebi also asked market entities to conduct detailed risk assessment of their clients, including those linked to countries facing international sanctions. The market intermediaries have been told to appoint designated directors to ensure compliance with new norms, who would face penal action for any lapses.Besides, stock exchanges have been asked to monitor the compliance of various entities through half-yearly internal audits and inspections and keep Sebi informed on these issues.The new norms have come ahead of general elections scheduled for April-May. Such periods typically see a spurt in money laundering, including through the capital markets.Norms for record-keeping by market entities have been streamlined and would require client details to be "preserved and maintained" for five years after the business relationship has ended or the account is closed.So far, client details had to be preserved for 10 years. Details that now need to be stored include evidence of the identity of clients and their beneficiary owners. Evidence of identity includes copies of passports, driving licenses and other identity cards, and account files and business correspondence.