Know your customer norms pdf

Policy on know your customer kyc norms and antimoney. The policy was based on the then prevailing guidelines issued by rbi. Policy guidelines on know your customer norms and anti money laundering measures purpose this policy document gives an overview on the standards issued by the reserve bank of india rbi on the know your customer and anti money laundering for nonbanking financial companies thereby setting. The term can also refer to the bank regulations and antimoney laundering regulations that govern these activities. The reserve bank of india had introduced kyc norms for all banks in 2002 and has been improving on them ever since. Policies and procedures manual for the prevention of money laundering and terrorist financing. Gk, general studies, optional notes for upsc, ias, banking, civil services. Critically examine both demerits and merits of imposing kyc norms. This ppt talk about need and implication of know your customers norms in indian banking sector. Qcb asks banks to strengthen kyc norms to fight financial. The know your customer or know your client kyc guidelines in financial services requires that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. The objective of kycamlcft guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. Central kyc records registry ckycr means the company, to receive, store, safeguard and retrieve the kyc records in digital form of a customer. Know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism primary urban cooperative banks ucbs have been advised vide our circular ubd.

Letter issued by the uidai is accepted as an officially valid document for opening all types of bank accounts. Failure would attract levy of penalty and if penalty has been levied the same is to be disclosed in the notes to accounts. Contents 1 preamble 2 definition of money laundering 3 obligations under prevention of money laundering pml act 2002 4 policy objectives 5 scope 6 client acceptance procedure client identification process. Read this article to know all about kyc documents, kyc process, kyc benefits, kyc requirements, kyc. It involves making reasonable efforts to determine true identity. Introduction now your customer kyc is the due diligence and bank. Know your customer procedures for existing customers banks are expected to have adopted due diligence and appropriate kyc norms at the time of opening of accounts in respect of existing customers in terms of our extant instructions referred to in the annexure. The know your customer rule 2090 essentially states that every brokerdealer should use reasonable effort when opening and maintaining client accounts. The regulations require the banks to know their customers popularly known as the know your customer or kyc regulations and to monitor their transactions. Rbi has issued instructions to all banks to implement without fail certain procedural norms on kyc. Please rollover map to select your region then click to select country of choice antimoney laundering recordbreaking fines issued by regulators worldwide, notably in the us and uk, dominated the financial services landscape in 2012. The reason why proper kyc norms can help is that if a particular customer or entity is in the red list or the black list being monitored, they can help spot and track transactions made by these entities. Kyc processes are also employed by companies of all. Importance of kyc kyc is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information.

If the aml laws and or regulations became effective in the last 2 years, what were the requirements of. Fields marked with are mandatoryto be filled in black ink with block for instructions to fill form please see overleaf 1 personal details. Know your customer kyc procedures are a critical function to assess customer risk and a legal requirement to comply with antimoney laundering aml laws. In terms of the provisions of prevention of moneylaundering act, 2002 and the prevention of moneylaundering maintenance of records rules, 2005, regulated entities res are required to follow certain customer identification procedure while undertaking a. Know your customer norms letter issued by unique identification authority of india uidai containing details of name, address and aadhaar number. Know your customer kyc norms and anti money laundering aml. This master circular is a consolidation of the instructions on know your customer kyc norms antimoney laundering aml. Know your customer kyc is a bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant info.

Know your customer procedures for existing customers. The branches were earlier advised to subject all the oldexisting accounts to kyc norms. In addition, draft financial institutions agent banking regulations are expected to be finalized and issued in the near future. Mrs ms first name middle name last name b gas consumer number c date. If you continue browsing the site, you agree to the use of cookies on this website. Customer kyc and antimoney laundering as per rbi guidelines. Know your customer what is kyc, its requirements and. Relief for financial firms as rbi allows video kyc 10 jan, 2020, 07. Master circular on know your customer kyc standards. Further, specified information under the pmla about the cash and suspicious transactions need to be submitted to the financial intelligence unit, india fiuind.

Know your customer what is kyc, its requirements and benefits. Reserve bank of india has advised banks to make the know your customer kyc procedures mandatory while opening and operating the accounts and has issued the kyc guidelines under section 35 a of the banking regulation act, 1949. The importance of kyc know your customer norms and. Bank has issued detailed guidelines on know your customer norms kyc and antimoney laundering standards aml. This means that proper identification of customers lead to better compliance and better monitoring. Policy guidelines on know your customer norms and antimoney laundering measures table of contents sr.

Purpose banks and financial institutions fis have been advised to. Know your customer kyc information for customers intending to open bank accounts with us as per the prevention of money laundering act, 2002 and the rules mentioned therein, every banking company, financial institution and intermediary, as the case may be, are required to, at. Kyc norms free download as powerpoint presentation. Kyc is an acronym for know your customer, a term used for customer identification process. Master direction know your customer kyc direction, 2016. Master circular on know your customer kyc master circular on know your customer kyc normsantimoney laundering aml standardscombating financing of terrorism cftobligation of banks and financial institutions under prevention of money laundering act, pmla, 2002. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customers.

Category individualproprietary firm company trustsfoundations partnership firm 2. Know your customer guidelines, wherein certain personal information of the. In order to arrest money laundering, where banks are mostly used in the process, it is imperative that they know their customers well. As part of know your customer kyc principle, rbi has issued several guidelines relating to identification of depositors and advised the. Kyc know your customer slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Master circular on know your customer kyc master circular on know your customer kyc norms antimoney laundering aml standardscombating financing of terrorism cftobligation of banks and financial institutions under prevention of money laundering act, pmla, 2002. In terms of the provisions of prevention of moneylaundering act, 2002 and the prevention of moneylaundering maintenance of records rules, 2005 regulated, entities res are required to follow certain customer identification procedurewhile s. Know your customer kyc norms and anti money laundering aml 1.

However, the company endeavors to frame a proper policy framework on know your. Guidelines on know your customer norms and cash transactions. The qatar central bank qcb has asked banks and financial institutions to strengthen their kyc knowyourcustomer norms as part of due diligence to combat all kinds of financial crimes. Policy guidelines on know your customer norms and anti. What is kyc what is kyc process where is kyc needed and why what documents are needed for kyc or. The know your customer or know your client kyc guidelines in financial services requires that professionals make an effort to verify the identity, suitability, and. The key theme in this article is that the cardinal principle in any financial investigation is follow the money trail and in this respect, having reliable, accurate. This article discusses the importance of proper kyc know your customer norms and procedures in view of the increasing instances of banks around the world engaging in money laundering and other activities. June 30, 2011 on know your customer kyc norms antimoney laundering aml standardscombating of financing of terrorism cftobligation of banks under pmla, 2002. It is a process by which banks obtain information about the identity and address of the customers. Oocl customer advisory for know your customer kyc norms. Individual customers, bank will obtain the customers identity information, address and recent photograph. Know your customer or kyc norms is a process by which banks get information about the identity of their customers.

Any contravention of the same will attract penalties under the relevant provisions of the act. Icici banks kyc procedure specifies certain commonly available documents as. Under new operating guidelines, the reserve bank of india rbi has issued a letter to indias payments banks, toughening the regulations around the kyc or know your customer process. Effective kyc involves knowing a customers identity, their financial activities and the risk they pose.