| {"text": "Introduction \nIn order to prevent banks and other financial institutions from being used as a channel \nfor Money Laundering (ML) / Terrorist Financing (TF) and to ensure the integrity and \nstability of the financial system, efforts are continuously being made both \ninternationally and nationally, by way of prescribing various rules and regulations. \nInternationally, the Financial Action Task Force (FATF), which is an inter-governmental \nbody established in 1989 by the Ministers of its member jurisdictions, sets standards \nand promotes effective implementation of legal, regulatory and operational measures \nfor combating money laundering, terrorist financing and other related threats to the \nintegrity of the international financial system. India, as a member of FATF, is committed \nto upholding measures to protect the integrity of the international financial system. \nIn India, the Prevention of Money-Laundering Act, 2002, and the Prevention of Money- \nLaundering (Maintenance of Records) Rules, 2005, form the legal framework on Anti-\nMoney Laundering (AML) and Countering the Financing of Terrorism (CFT). The \nprovisions of the PML Act, 2002 and the PML Rules, 2005, as amended from time to \ntime by the Government of India, require Regulated Entities (REs) to follow certain \ncustomer identification procedures while undertaking a transaction either by \nestablishing an account-based relationship or otherwise, and to monitor their \ntransactions. \nAccordingly, in exercise of the powers conferred by sections 35A of the Banking \nRegulation Act, 1949, section 10(2) read with section 18 of Payment and Settlement \nSystems Act 2007 (Act 51 of 2007), section 11(1) of the Foreign Exchange Management \nAct, 1999, Rule 9(14) of the Prevention of Money-Laundering (Maintenance of \nRecords) Rules, 2005, and all other laws enabling the Reserve Bank in this regard, the \nRBI being satisfied that it is necessary and expedient in the public interest so to do, \nhereby issues the Directions hereinafter specified."} |
| {"text": "Chapter I – Preliminary \nA. Short Title and Commencement. \n1. These Directions shall be called the Reserve Bank of India (Commercial Banks – \nKnow Your Customer) Directions, 2025. \n2. These directions shall come into effect on the day they are placed on the official \nwebsite of the RBI. \nB. Applicability \n3. These directions shall be applicable to Commercial Banks (hereinafter collectively \nreferred to as 'banks' and individually as a 'bank'). \nFor the purpose of these Directions, ‘Commercial Banks’ mean banking companies \n(other than Small Finance Banks, Payment Banks, and Local Area Banks), \ncorresponding new banks, and the State Bank of India, as defined respectively under \nclauses (c), (da), and (nc) of Section 5 of the Banking Regulation Act, 1949. \n4. These directions shall also apply to those branches and majority-owned subsidiaries \nof the bank which are located abroad, to the extent they are not contradictory to the \nlocal laws in the host country, provided that: \n(1) where applicable laws and regulations prohibit implementation of these guidelines, \nthe bank shall bring the same to the notice of the RBI. The RBI may advise the bank \nto take further necessary action, including application of additional measures to \nmanage the ML / TF risks. \n(2) in case there is a variance in KYC / AML standards prescribed by the RBI and the \nhost country regulators, branches / subsidiaries of the bank shall adopt the more \nstringent regulation of the two. \n(3) branches/ subsidiaries of a Foreign Incorporated bank may adopt the more \nstringent regulation of the two i.e., standards prescribed by RBI and their home country \nregulators. \nProvided that this rule shall not apply to ‘small accounts’ referred to in paragraph 28 of \nChapter VI. \nC. Definitions \n5. In these Directions, unless the context otherwise requires, the following meanings"} |
| {"text": "are assigned to the terms herein: \n(1) Terms bearing meaning assigned in terms of the Prevention of Money-Laundering \nAct, 2002, and the Prevention of Money-Laundering (Maintenance of Records) Rules, \n2005: \n(i) ‘Aadhaar number’ shall have the meaning assigned to it in clause (a) of section 2 of \nthe Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and \nServices) Act, 2016 (18 of 2016); \n(ii) ‘Act’ and ‘Rules’ mean the Prevention of Money-Laundering Act, 2002 and the \nPrevention of Money-Laundering (Maintenance of Records) Rules, 2005, respectively \nand amendments thereto. \n(iii) ‘Authentication’, in the context of Aadhaar authentication, means the process as \ndefined under sub-section (c) of section 2 of the Aadhaar (Targeted Delivery of \nFinancial and Other Subsidies, Benefits and Services) Act, 2016. \n(iv) Beneficial Owner (BO) \n(a) Where the customer is a company, the beneficial owner is the natural person(s), \nwho, whether acting alone or together, or through one or more juridical persons, has / \nhave a controlling ownership interest or who exercises control through other means. \nExplanation: For the purpose of this sub-clause- \n• ‘Controlling ownership interest’ means ownership of / entitlement to more than 10 \npercent of the shares or capital or profits of the company. \n• ‘Control’ shall include the right to appoint the majority of the directors or to control the \nmanagement or policy decisions including by virtue of their shareholding or \nmanagement rights or shareholders agreements or voting agreements. \n(b) Where the customer is a partnership firm, the beneficial owner is the natural \nperson(s), who, whether acting alone or together, or through one or more juridical \nperson(s), has / have ownership of / entitlement to more than 10 percent of capital or \nprofits of the partnership or who exercises control through other means. \nExplanation: For the purpose of this sub-clause, ‘control’ shall include the right to \ncontrol the management or policy decision. \n(c) Where the customer is an unincorporated association or body of individuals,"} |
| {"text": "the beneficial owner is the natural person(s), who, whether acting alone or together, or \nthrough one or more juridical person, has / have ownership of / entitlement to more than \n15 percent of the property or capital or profits of the unincorporated association or body \nof individuals. \nExplanation: Term ‘body of individuals’ includes societies. Where no natural person is \nidentified under (a), (b) or (c) above, the beneficial owner is the relevant natural person \nwho holds the position of senior managing official. \n(d) Where the customer is a trust, the identification of beneficial owner(s) shall include \nidentification of the author of the trust, the trustee, the beneficiaries with 10 percent or \nmore interest in the trust and any other natural person exercising ultimate effective \ncontrol over the trust through a chain of control or ownership. \n(v) ‘Certified Copy’ – Obtaining the certified copy by the bank shall mean comparing \nthe copy of the proof of possession of Aadhaar number where offline verification cannot \nbe carried out or the officially valid document produced by the customer with the \noriginal, and an authorised officer of the bank shall record the comparison on the copy \nas per the provisions contained in the Act. Provided that in case of Non-Resident \nIndians (NRIs) and Persons of Indian Origin (PIOs), as defined in Foreign Exchange \nManagement (Deposit) Regulations, 2016 {FEMA 5(R)}, the bank may alternatively \nobtain the original certified copy, certified by any one of the following: \n(a) authorised officials of overseas branches of Scheduled Commercial Banks \nregistered in India, \n(b) branches of overseas banks with whom Indian banks have relationships, \n(c) Notary Public abroad, \n(d) Court Magistrate, \n(e) Judge, \n(f) Indian Embassy / Consulate General in the country where the non-resident \ncustomer resides. \n(vi) ‘Central KYC Records Registry’ (CKYCR) means an entity defined under Rule 2(1) \nof the Rules, to receive, store, safeguard and retrieve the KYC records in digital form \nof a customer."} |
| {"text": "(vii) ‘Designated Director’ means a person whom the bank designates to ensure overall \ncompliance with the obligations imposed under chapter IV of the PML Act and the \nRules and shall include the Managing Director or a whole-time Director, whom the \nBoard of Directors has duly authorised. \nExplanation: For the purpose of this clause, the terms ‘Managing Director’ and \n‘Whole-time Director’ shall have the meaning assigned to them in the Companies Act, \n2013. \n(viii) ‘Digital KYC’ means that an authorised officer of the bank captures a live photo of \nthe customer and officially valid document or the proof of possession of Aadhaar \n(where offline verification cannot be carried out), along with the latitude and \nlongitude of the location where such live photo is being taken, as per the provisions \ncontained in the Act. \n(ix) ‘Digital Signature’ shall have the same meaning as assigned to it in clause (p) \nof sub-section (1) of section (2) of the Information Technology Act, 2000 (21 of \n2000). \n(x) ‘Equivalent e-document’ means an electronic equivalent of a document that \nthe issuing authority of such document issues with its valid digital signature, \nincluding documents issued to the digital locker account of the customer as per rule \n9 of the Information Technology (Preservation and Retention of Information by \nIntermediaries Providing Digital Locker Facilities) Rules, 2016. \n(xi) ‘Group’ – The term ‘group’ shall have the same meaning assigned to it in clause \n(e) of sub-section (9) of section 286 of the Income-tax Act,1961 (43 of 1961). \n(xii) ‘Know Your Client (KYC) Identifier’ means the unique number or code that the \nCentral KYC Records Registry assigns to a customer. \nExplanation: A customer can obtain his KYC Identifier through the following ways: In the \nprocess of opening an account, once the customer’s KYC Identifier is generated by \nCKYCR and provided to the bank, the bank shall share the same with the concerned \ncustomer. The customer can also access his KYC Identifier on CKYCR Portal \n(www.ckycindia.in). \n(xiii) ‘Non-profit organisations (NPO)’ means any entity or organisation, constituted \nfor religious or charitable purposes referred to in clause (15) of section 2 of the Income-"} |
| {"text": "tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies \nRegistration Act, 1860 or any similar State legislation or a company registered \nunder section 8 of the Companies Act, 2013 (18 of 2013). \n(xiv) ‘Officially Valid Document (OVD)’ means the passport, the driving licence, \nproof of possession of Aadhaar number, the Voter's Identity Card that the Election \nCommission of India issues, the job card that NREGA issues and an officer of the \nState Government duly signs, and the letter that the National Population Register \nissues containing details of name and address. \nProvided that, \n(a) where the customer submits his proof of possession of Aadhaar number as an \nOVD, he may submit it in such form that the Unique Identification Authority of India \n(UIDAI) issues. \n(b) when the customer furnishes an OVD that does not have an updated address, \nthe bank shall deem the following documents or the equivalent e-documents thereof \nto be OVDs for the limited purpose of proof of address:- \n• utility bill which is not more than two months old of any service provider (electricity, \ntelephone, post-paid mobile phone, piped gas, water bill); \n• property or Municipal tax receipt; \n• pension or family pension payment orders (PPOs) issued to retired employees by \nGovernment Departments or Public Sector Undertakings, if they contain the address; \n• letter of allotment of accommodation from employer that is issued by State \nGovernment or Central Government Departments, statutory or regulatory bodies, \npublic sector undertakings, scheduled commercial banks, financial institutions and \nlisted companies and leave and licence agreements with such employers allotting \nofficial accommodation; \nIllustration: If a customer is staying in Chennai but their OVD contains an address of \nNew Delhi, they can open an account in Chennai by submitting a deemed to be \nOVD for the purpose of proof of address. However, as mentioned below in clause (c), \nthey are required to submit an OVD with current address within a period of three \nmonths. \n(c) the customer shall submit OVD with current address within a period of three months"} |
| {"text": "of submitting the documents specified at (b) above \n(d) if the OVD that a foreign national presents does not contain the details of address, \nthe bank shall accept documents that Government departments of foreign jurisdictions \nissue, and a letter that the Foreign Embassy or Mission in India issues, as proof of \naddress. \nExplanation: For the purpose of this clause, the bank shall deem a document to be an \nOVD even if there is a change in the name subsequent to its issuance provided that it \nis supported by a marriage certificate that the State Government issues or a Gazette \nnotification, indicating such a change of name. \n(xv) ‘Offline verification’ shall have the same meaning as assigned to it in clause (pa) \nof section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, \nBenefits and Services) Act, 2016 (18 of 2016). \n(xvi) ‘Person’ has the same meaning assigned in the Act and includes: \n(a) an individual, \n(b) a Hindu undivided family, \n(c) a company, \n(d) a firm, \n(e) an association of persons or a body of individuals, whether incorporated or not, \n(f) every artificial juridical person, not falling within any one of the above persons (a to \ne), and \n(g) any agency, office or branch owned or controlled by any of the above persons (a to \nf). \n(xvii) ‘Principal Officer’ means a bank’s nominated officer at the management level, \nresponsible for furnishing information as per rule 8 of the Rules. \n(xviii) ‘Suspicious transaction’ means a ‘transaction’ as defined below, including an \nattempted transaction, whether or not made in cash, which, to a person acting in good \nfaith: \n(a) gives rise to a reasonable ground of suspicion that it may involve proceeds of an \noffence specified in the Schedule to the Act, regardless of the value involved; or"} |
| {"text": "(b) appears to be made in circumstances of unusual or unjustified complexity; or \n(c) appears to have no economic rationale or bona fide purpose; or \n(d) gives rise to a reasonable ground of suspicion that it may involve financing of the \nactivities relating to terrorism. \nExplanation: Transaction involving financing of the activities relating to terrorism \nincludes transaction involving funds that the bank suspects are linked or related to, or \nto be used for terrorism, terrorist acts or by a terrorist, terrorist organisation or those \nwho finance or are attempting to finance terrorism. \n(xix) A ‘Small Account' means a savings account which is opened in terms of sub- \nrule (5) of rule 9 of the PML Rules, 2005. Details of the operation of a small account \nand controls to be exercised for such account are specified in paragraph 28. \n(xx) ‘Transaction’ means a purchase, sale, loan, pledge, gift, transfer, delivery or \nthe arrangement thereof and includes: \n(a) opening of an account; \n(b) deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in \ncash or by cheque, payment order or other instruments or by electronic or other non-\nphysical means; \n(c) the use of a safety deposit box or any other form of safe deposit; \n(d) entering into any fiduciary relationship; \n(e) any payment made or received, in whole or in part, for any contractual or other legal \nobligation; or \n(f) establishing or creating a legal person or legal arrangement. \n(2) Unless the context otherwise requires, terms in these Directions shall bear the \nmeanings assigned to them below: \n(i) ‘Common Reporting Standards (CRS)’ means reporting standards set for \nimplementation of multilateral agreement signed to automatically exchange information \nbased on Article 6 of the Convention on Mutual Administrative Assistance in Tax \nMatters. \n(ii) Correspondent Banking: Correspondent banking is the provision of banking"} |
| {"text": "services by one bank (the ‘correspondent bank’) to another bank (the ‘respondent \nbank’). A correspondent bank may provide the respondent banks with a wide range of \nservices, including cash management (e.g., interest-bearing accounts in a variety of \ncurrencies), international wire transfers, cheque clearing, payable- through accounts \nand foreign exchange services. \n(iii) ‘Customer’ means a person who is engaged in a financial transaction or activity \nwith the bank and includes a person on whose behalf the person who is engaged in \nthe transaction or activity, is acting. \n(iv) ‘Walk-in Customer’ means a person who does not have an account-based \nrelationship with the bank, but undertakes transactions with the bank. \n(v) ‘Customer Due Diligence (CDD)’ means identifying and verifying the customer \nand the beneficial owner using reliable and independent sources of identification. \nExplanation: The CDD, at the time of commencement of an account-based \nrelationship or while carrying out occasional transaction of an amount equal to or \nexceeding ₹50,000, whether conducted as a single transaction or several \ntransactions that appear to be connected, or any international money transfer \noperations, shall include: \n(a) Identification of the customer, verification of their identity using reliable and \nindependent sources of identification, obtaining information on the purpose and \nintended nature of the business relationship, where applicable \n(b) Taking reasonable steps to understand the nature of the customer's business, and its \nownership and control; \n(c) Determining whether a customer is acting on behalf of a beneficial owner, and \nidentifying the beneficial owner and taking all steps to verify the identity of the beneficial \nowner, using reliable and independent sources of identification. \n(vi) ‘Customer identification’ means undertaking the process of CDD. \n(vii) ‘FATCA’ means Foreign Account Tax Compliance Act of the United States of \nAmerica (USA) which, inter alia, requires foreign financial institutions to report about \nfinancial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers \nhold a substantial ownership interest. \n(viii) ‘IGA’ means Inter Governmental Agreement between the Governments of India"} |
| {"text": "and the USA to improve international tax compliance and to implement FATCA of the \nUSA. \n(ix) ‘KYC Templates’ means templates prepared to facilitate collating and reporting \nKYC data to the CKYCR, for individuals and legal entities. \n(x) ‘Non-face-to-face customers’ means customers who open accounts without \nvisiting the branch / offices of the bank or meeting the officials of the bank. \n(xi) ‘On-going Due Diligence’ means regular monitoring of transactions in accounts \nto ensure that transactions are consistent with the bank’s knowledge about the \ncustomers, customers’ business and risk profile, the source of funds / wealth. \n(xii) Payable-through accounts: The term payable-through accounts refers to \ncorrespondent accounts that third parties use directly to transact business on their own \nbehalf. \n(xiii) ‘Periodic Updation’ means the steps taken to ensure that documents, data or \ninformation collected under the CDD process are kept up-to-date and relevant by \nundertaking reviews of existing records at the periodicity prescribed by the RBI. \n(xiv) 'Regulated Entities (REs)’ means: \n(a) all Scheduled Commercial Banks (SCBs) / Regional Rural Banks (RRBs) / Local \nArea Banks (LABs) / All Primary (Urban) Co-operative Banks (UCBs) / State and \nCentral Co-operative Banks (StCBs / CCBs), and any other entity which has been \nlicensed under section 22 of Banking Regulation Act, 1949, which as a group shall be \nreferred as ‘banks’ \n(b) All India Financial Institutions (AIFIs) \n(c) All Non-Banking Finance Companies (NBFCs), Miscellaneous Non-Banking \nCompanies (MNBCs) and Residuary Non-Banking Companies (RNBCs) \n(d) Asset Reconstruction Companies (ARCs) \n(e) All Payment System Providers (PSPs) / System Participants (SPs) and Prepaid \nPayment Instrument Issuers (PPI Issuers) \n(f) All authorised persons (APs), including those who are agents of Money Transfer \nService Scheme (MTSS), regulated by the Regulator. \n(xv) ‘Shell Bank’ means a bank that has no physical presence in the country in which"} |
| {"text": "it is incorporated and licensed, and which is unaffiliated with a regulated financial group \nthat is subject to effective consolidated supervision. Physical presence means \nmeaningful mind and management located within a country. The existence simply of a \nlocal agent or low-level staff does not constitute physical presence. \n(xvi) ‘Video based Customer Identification Process (V-CIP)’: an alternative method \nby which an authorised official of the bank conducts customer identification with facial \nrecognition and customer due diligence. This process involves a seamless, secure, \nlive, informed- consent based audio-visual interaction with the customer to obtain \nidentification information required for CDD purpose, and to ascertain the veracity of the \ninformation which the customer furnished, through independent verification and by \nmaintaining an audit trail of the process. The bank shall treat such processes \ncomplying with prescribed standards and procedures on par with face-to-face CIP for \nthe purpose of this Direction. \n(xvii) ‘Wire transfer’ related definitions: \n(a) Batch transfer: A batch transfer is a transfer comprised of a number of individual \nwire transfers that are being sent to the same financial institutions but may / may not \nbe ultimately intended for different persons. \n(b) Beneficiary: Beneficiary refers to a natural or legal person or legal arrangement \nwhom / which the originator identifies as the receiver of the requested wire transfer. \n(c) Beneficiary RE: It refers to a financial institution that RBI regulates, which receives \nthe wire transfer from the ordering financial institution directly or through an \nintermediary RE and makes the funds available to the beneficiary. \n(d) Cover Payment: Cover Payment refers to a wire transfer that combines a payment \nmessage which the ordering financial institution sends directly to the beneficiary \nfinancial institution with the routing of the funding instruction (the cover) from the \nordering financial institution to the beneficiary financial institution through one or more \nintermediary financial institutions. \n(e) Cross-border wire transfer: Cross-border wire transfer refers to any wire transfer \nwhere the ordering financial institution and beneficiary financial institution are located \nin different countries. This term also refers to any chain of wire transfer in which at least \none of the financial institutions involved is located in a different country."} |
| {"text": "(f) Domestic wire transfer: Domestic wire transfer refers to any wire transfer where the \nordering financial institution and beneficiary financial institution are located in India. \nThis term, therefore, refers to any chain of wire transfers that takes place entirely within \nthe borders of India, even though the system used to transfer the payment message \nmay be located in another country. \n(g) Financial Institution: In the context of wire-transfer instructions, the term ‘Financial \nInstitution’ shall have the same meaning as has been ascribed to it in the FATF \nRecommendations, as revised from time to time. \n(h) Intermediary RE: Intermediary RE refers to an RBI regulated financial institution / \nentity that handles an intermediary element of the wire transfer, in a serial or cover \npayment chain and that receives and transmits a wire transfer on behalf of the ordering \nfinancial institution and the beneficiary financial institution, or another intermediary \nfinancial institution. \n(i) Ordering RE: Ordering RE refers to the RBI-regulated financial institution which \ninitiates the wire transfer and transfers the funds upon receiving the request for a wire \ntransfer on behalf of the originator. \n(j) Originator: Originator refers to the account holder who allows the wire transfer from \nthat account, or where there is no account, the natural or legal person that places the \norder with the ordering financial institution to perform the wire transfer. \n(k) Serial Payment: Serial Payment refers to a direct sequential chain of payment \nwhere the wire transfer and accompanying payment message travel together from the \nordering financial institution to the beneficiary financial institution directly or through \none or more intermediary financial institutions (e.g., correspondent banks). \n(l) Straight-through Processing: Straight-through processing refers to payment \ntransactions that are conducted electronically without the need for manual intervention. \n(m) Unique transaction reference number: Unique transaction reference number \nrefers to a combination of letters, numbers or symbols, a payment service provider \ndetermines, in accordance with the protocols of the payment and settlement system or \nmessaging system used for the wire transfer. \n(n) Wire transfer: Wire transfer refers to any transaction carried out on behalf of an \noriginator through a financial institution by electronic means with a view to making an"} |
| {"text": "amount of funds available to a beneficiary at a beneficiary financial institution, \nirrespective of whether the originator and the beneficiary are the same person. \n(3) Unless defined herein, all other expressions shall have the same meaning as has \nbeen assigned to them under the Banking Regulation Act, 1949, the Reserve Bank of \nIndia Act, 1935, the Prevention of Money Laundering Act, 2002, the Prevention of \nMoney Laundering (Maintenance of Records) Rules, 2005, the Aadhaar (Targeted \nDelivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and \nregulations made thereunder, any statutory modification or re-enactment thereto or as \nused in commercial parlance, as the case may be."} |
| {"text": "Chapter II – General \nA. Board of Directors / Policies related guidelines: \n6. Know Your Customer (KYC) Policy: \n(1) The bank shall have a KYC policy. The Board of Directors of the bank, or any \ncommittee to which the Board has delegated power, shall duly approve the KYC policy. \n(2) The KYC policy shall include following four key elements: \n(i) Customer Acceptance Policy; \n(ii) Risk Management \n(iii) Customer Identification Procedures (CIP); and \n(iv) Monitoring of Transactions \n(3) The KYC policy shall, inter alia include: \n(i) Periodic updation of KYC \n(ii) Any exceptional measures for KYC updation, such as requiring a recent \nphotograph, physical presence, or a more frequent updation schedule than the \nminimum prescribed. \n(iii) Obtaining a copy of OVD or deemed OVD, for the purpose of proof of change \nof address during KYC updation. \n(iv) Providing facility of updation / periodic updation of KYC at any branch. \n(4) Furthermore, the bank shall have the following: \n(i) Policies approved by the Board detailing a robust due diligence process for \nmanaging requests to change the registered Mobile Number for Accounts \nopened in non-face-to-face mode. \n(ii) Policy approved by the Board or a committee headed by the Chairman / CEO / \nMD, to establish parameters for approving cross-border correspondent banking \nrelationships. New correspondent banking relationships require post facto \napproval from the Board or the empowered committee. \n7. The specific responsibilities and actions stipulated for the Board or its relevant \ncommittees in paragraph 6 above are elaborated upon in greater detail within the"} |
| {"text": "Directions. \n8. In terms of PML Rules, groups shall implement group-wide policies for the purpose \nof discharging obligations under the provisions of Chapter IV of the PML Act, 2002. (15 \nof 2003). Accordingly, every bank which is part of a group, shall implement group-wide \nprogrammes against money laundering and terror financing, including group-wide \npolicies for sharing information required for the purposes of client due diligence, money \nlaundering, and terrorist finance risk management, and such programmes shall include \nadequate safeguards on the confidentiality and use of information exchanged, \nincluding safeguards to prevent tipping-off. \n9. Bank’s policy framework shall seek to ensure compliance with PML Act / Rules, \nincluding regulatory instructions in this regard and shall provide a bulwark against \nthreats arising from money laundering, terrorist financing, proliferation financing and \nother related risks. While ensuring compliance with the legal / regulatory requirements \nas above, the bank may also consider adoption of best international practices taking \ninto account the FATF standards and FATF guidance notes, for managing risks better. \n10. Money Laundering and Terrorist Financing Risk Assessment by the bank: \n(1) The bank shall carry out ‘Money Laundering (ML) and Terrorist Financing (TF) Risk \nAssessment’ exercises periodically to identify, assess and take effective measures to \nmitigate its money laundering and terrorist financing risk for clients, countries or \ngeographic areas, products, services, transactions or delivery channels, etc. The \nassessment process shall consider all the relevant risk factors before determining the \nlevel of overall risk and the appropriate level and type of mitigation to be applied. While \npreparing the internal risk assessment, the bank shall take cognizance of the overall \nsector-specific vulnerabilities, if any, that the regulator / supervisor may share with the \nbank from time to time. \n(2) The bank shall properly document its risk assessment and it shall be proportionate \nto the nature, size, geographical presence, complexity of activities / structure, etc. of \nthe bank. Further, the Board or a committee of the Board to which it has delegated \npower shall determine the periodicity of the risk assessment exercise, in alignment with \nthe outcome of the risk assessment exercise. However, the bank shall review it at least \nannually. \n(3) The bank shall present the outcome of the exercise to the Board or any committee"} |
| {"text": "of the Board to which power has been delegated in this regard. The outcome shall also \nbe made available to competent authorities and self-regulating bodies. \n11. The bank shall apply a Risk Based Approach (RBA) for mitigation and management \nof the risks (identified on its own or through national risk assessment) and shall have \nBoard-approved policies, controls and procedures in this regard. The bank shall \nimplement a CDD programme, having regard to the ML / TF risks identified and the size \nof business. Further, the bank shall monitor the implementation of the controls and \nenhance them if necessary. \n12. Compliance of KYC policy: The bank shall ensure compliance with KYC Policy \nthrough: \n(1) specifying as to who constitute ‘Senior Management’ for the purpose of KYC \ncompliance. \n(2) allocation of responsibility for effective implementation of policies and procedures. \n(3) independent evaluation of the compliance functions of the bank’s policies and \nprocedures, including legal and regulatory requirements. \n(4) concurrent / internal audit system to verify compliance with KYC / AML policies and \nprocedures. \n(5) submission of quarterly audit notes and compliance to the Audit Committee. \n13. The bank shall ensure that it does not outsource the decision-making functions of \ndetermining compliance with KYC norms. \nB. Other General Guidelines: \n14. Designated Director: \n(1) A ‘Designated Director’ is a Board-nominated person whom the bank designates to \nensure overall compliance with the obligations imposed under Chapter IV of the PML \nAct and the Rules. \n(2) The bank shall communicate the name, designation, address and the contact \ndetails of the Designated Director to the FIU-IND and RBI. \n(3) The bank shall not nominate the Principal Officer as the 'Designated Director'. \n15. Principal Officer:"} |
| {"text": "(1) The Principal Officer shall be responsible for ensuring compliance, monitoring \ntransactions, and sharing and reporting information as required under the law / \nregulations. \n(2) The bank shall communicate the name, designation, address and contact details \nof the Principal Officer to the FIU-IND and RBI."} |
| {"text": "Chapter III – Customer Acceptance Policy \n16. The bank shall frame a Customer Acceptance Policy. \n17. Without prejudice to the generality of the aspect that Customer Acceptance Policy \nmay contain, the bank shall: \n(1) not open any account in an anonymous or fictitious / benami name. \n(2) open no account where it is unable to apply appropriate CDD measures, either due \nto non-cooperation of the customer or unreliability of the documents / information \nfurnished by the customer. The bank shall consider filing an STR, if necessary, when \nit is unable to comply with the relevant CDD measures in relation to the customer. \n(3) not undertake a transaction or commence an account-based relationship without \nfollowing the CDD procedure. \n(4) specify the mandatory information to be sought for KYC purposes while opening an \naccount and during the periodic updation. \n(5) obtain additional information, where its internal KYC Policy has not specified such \ninformation requirement, with the explicit consent of the customer. \n(6) apply the CDD procedure at the UCIC level. Thus, if an existing KYC-compliant \ncustomer of a bank desires to open another account or avail of any other product or \nservice from the same bank, there shall be no need for a fresh CDD exercise as far as \nidentification of the customer is concerned. \n(7) follow the CDD Procedure for all the joint account holders, while opening a joint \naccount. \n(8) clearly spell out the circumstances in which a customer is permitted to act on behalf \nof another person / entity. \n(9) put in place a suitable system to ensure that the identity of the customer does not \nmatch with any person or entity, whose name appears in the sanctions lists indicated \nin Chapter IX of these Directions. \n(10) verify the Permanent Account Number (PAN) (if obtained) from the verification \nfacility of the issuing authority. \n(11) verify the customer’s digital signature on the equivalent e-document (if obtained)"} |
| {"text": "as per the provisions of the Information Technology Act, 2000 (21 of 2000). \n(12) verify the Goods and Services Tax (GST) number from the search / verification \nfacility of the issuing authority, where the GST details are available. \n18. The Customer Acceptance Policy shall not result in denial of a banking / financial \nfacility to members of the general public, especially those who are financially or socially \ndisadvantaged, including the Persons with Disabilities (PwDs). The bank shall not reject \nan application for onboarding or periodic updation of KYC without application of mind. \nThe officer concerned shall duly record the reason(s) for rejection. \n19. Where the bank forms a suspicion of money laundering or terrorist financing, and \nit reasonably believes that performing the CDD process will tip-off the customer, it shall \nnot pursue the CDD process, and instead file an STR with FIU-IND."} |
| {"text": "Chapter IV – Risk Management \n20. For risk management, the bank shall have a risk-based approach which includes \nthe following: \n(1) The bank shall categorise customers into low, medium, and high-risk categories, \nbased on its assessment and risk perception. \n(2) The bank may lay down broad principles for the risk-categorisation of customers. \n(3) The bank shall undertake risk categorisation based on parameters such as the \ncustomer’s identity, social / financial status, nature of business activity, and information \nabout the customer’s business and its location, geographical risk covering customers \nas well as transactions, type of products / services offered, delivery channel used for \ndelivery of products / services, types of transactions undertaken such as cash, cheque \n/ monetary instruments, wire transfers, forex transactions, etc. The bank may also \nfactor in the ability to confirm identity documents through online or other services \noffered by issuing authorities, while considering customer’s identity. \n(4) The bank shall keep the risk categorisation of a customer and the specific reasons \nfor such categorisation confidential and shall not reveal this information to the customer \nto avoid tipping off. \nProvided that the bank collects various other non-intrusive information from different \ncategories of customers relating to the perceived risk, and specifies the same in the \nKYC policy. \nExplanation: The bank may also use the FATF Public Statement, the reports and \nguidance notes on KYC / AML issued by the Indian Banks Association (IBA), and other \nagencies, etc., in its risk assessment."} |
| {"text": "Chapter V – Customer Identification Procedure (CIP) \n21. The bank shall undertake identification of customers in the following cases: \n(1) Commencement of an account-based relationship with the customer. \n(2) Carrying out any international money transfer operations for a person who is not an \naccount holder of the bank. \n(3) When there is a doubt about the authenticity or adequacy of the customer \nidentification data it has obtained. \n(4) Selling third-party products as agents, selling its own products, payment of dues of \ncredit cards / sale and reloading of prepaid / travel cards and any other product for more \nthan ₹50,000. \n(5) Carrying out transactions for a non-account-based customer, i.e., a walk-in \ncustomer, where the amount involved is equal to or exceeds ₹50,000, whether \nconducted as a single transaction or several transactions that appear to be connected. \n(6) When the bank has reason to believe that a customer (account-based or walk-in) is \nintentionally structuring a transaction into a series of transactions below the threshold \nof ₹50,000. \n(7) The bank shall ensure it does not seek introductions while opening accounts. \n22. For the purpose of verifying the identity of customers at the time of commencement \nof an account-based relationship or while carrying out an occasional transaction of an \namount equal to or exceeding ₹50,000, whether conducted as a single transaction or \nseveral transactions that appear to be connected, or any international money transfer \noperations, the bank, shall at its option, rely on customer due diligence done by a third \nparty, subject to the following conditions: \n(1) The bank obtains the records or information of the customer due diligence carried \nout by the third party immediately from the third party or from the Central KYC Records \nRegistry. \n(2) The bank shall take adequate steps to satisfy itself that the third party will make \ncopies of identification data and other relevant documentation relating to the customer \ndue diligence requirements available, upon request, without delay. \n(3) A regulator regulates, supervises, or monitors the third party, and the third party"} |
| {"text": "has measures in place for compliance with customer due diligence and record-keeping \nrequirements in line with the requirements and obligations under the PML Act. \n(4) The bank shall ensure that the third party is not based in a country or jurisdiction \nassessed as high-risk. \n(5) The bank will have the ultimate responsibility for customer due diligence and \nundertaking enhanced due diligence measures, as applicable."} |
| {"text": "Chapter VI – Customer Due Diligence (CDD) Procedure \nA. CDD Procedure in case of Individuals \n23. For undertaking CDD, the bank shall obtain the following from an individual while \nestablishing an account-based relationship or while dealing with the individual who is \na beneficial owner, authorised signatory or the power of attorney holder related to any \nlegal entity: \n(1) the Aadhaar number where, \n(i) they are desirous of receiving any benefit or subsidy under any scheme notified \nunder section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, \nBenefits and Services) Act, 2016 (18 of 2016); or \n(ii) they decide to submit their Aadhaar number voluntarily to a bank or any RE notified \nunder the first proviso to sub-section (1) of section 11A of the PML Act; or \n(2) the proof of possession of Aadhaar number where the bank can carry out offline \nverification; or \n(3) the proof of possession of Aadhaar number where the bank cannot carry out the \noffline verification or any OVD or the equivalent e-document thereof containing the \ndetails of their identity and address; or \n(4) the KYC Identifier with an explicit consent to download records from CKYCR; and \n(5) PAN or the equivalent e-document thereof or Form No. 60 as defined in Income-\ntax Rules, 1962; and \n(6) the bank may require such other documents including in respect of the nature of \nbusiness and financial status of the customer, or the equivalent e-documents thereof. \nProvided that where the customer has submitted, \n(i) Aadhaar number under clause (1) above to a bank or REs notified under first proviso \nto sub-section (1) of section 11A of the PML Act, such bank shall carry out \nauthentication of the customer’s Aadhaar number using UIDAI’s e-KYC authentication \nfacility. Further, in such a case, if the customer wants to provide a current address, \ndifferent from the address as per the identity information available in the Central \nIdentities Data Repository, they may give a self-declaration to that effect to the bank."} |
| {"text": "(ii) proof of possession of Aadhaar under clause (2) above where offline verification \ncan be carried out, the bank shall carry out offline verification. \n(iii) an equivalent e-document of any OVD, the bank shall verify the digital signature as \nper the provisions of the Information Technology Act, 2000 (21 of 2000) and any rules \nissued thereunder and take a live photo as specified under paragraph 24 below. \n(iv) any OVD or proof of possession of Aadhaar number under clause (3) above where \noffline verification cannot be carried out, the bank shall carry out verification through \ndigital KYC as specified under paragraph 24 below. \n(v) KYC Identifier under clause (4) above, the bank shall retrieve the KYC records \nonline from the CKYCR in accordance with paragraph 65. \nProvided that for a period not beyond such date as the Government may notify for a \nclass of REs, instead of carrying out digital KYC, the bank pertaining to such class may \nobtain a certified copy of the proof of possession of Aadhaar number or the OVD and \na recent photograph where the customer does not submit an equivalent e- document. \nProvided further that in case the bank cannot perform an e-KYC authentication for an \nindividual desirous of receiving any benefit or subsidy under any scheme notified under \nsection 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits \nand Services) Act, 2016 owing to injury, illness or infirmity on account of old age or \notherwise, and similar causes, the bank shall, apart from obtaining the Aadhaar \nnumber, perform identification preferably by carrying out offline verification or \nalternatively by obtaining the certified copy of any other OVD or the equivalent e-\ndocument thereof from the customer. An official of the bank shall invariably carry out \nCDD done in this manner, and such exception handling shall also be a part of the \nconcurrent audit as mandated in paragraph 12 and 13. The bank shall ensure to duly \nrecord the cases of exception handling in a centralised exception database. The \ndatabase shall contain the details of grounds of granting exception, customer details, \nname of the designated official authorising the exception and additional details, if any. \nThe bank shall subject the database to periodic internal audit / inspection and the bank \nshall make database available for supervisory review. \nExplanation 1: The bank shall, where its customer submits a proof of possession of \nAadhaar Number containing Aadhaar Number, ensure that such customer redacts or \nblacks out his Aadhaar number through appropriate means where the authentication"} |
| {"text": "of Aadhaar number is not required as per proviso (i) above. \nExplanation 2: A bank official, business correspondent, or business facilitator can \nperform \nbiometric-based \ne-KYC \nauthentication, \nincluding \nAadhaar \nFace \nAuthentication. \nExplanation 3: The bank shall ensure that the use of Aadhaar, proof of possession of \nAadhaar etc., is in accordance with the Aadhaar (Targeted Delivery of Financial and \nOther Subsidies Benefits and Services) Act, 2016 and the regulations made \nthereunder. \nExplanation 4: Aadhaar number is not mandatory for purposes of KYC. However, in \ncase the customer is desirous of receiving any benefit or subsidy under any scheme \nnotified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other \nsubsidies, Benefits and Services) Act, 2016 (18 of 2016), the customer shall provide \nthe Aadhaar number to the bank. In other cases, customers may provide the Aadhaar \nnumber voluntarily. \n24. Digital KYC Process: \n(1) The bank shall develop an application for digital KYC process and make it available \nat customer touch points for undertaking KYC of its customers and shall undertake the \nKYC process only through this authenticated application. \n(2) The bank shall control the access to the Application and shall ensure that \nunauthorised persons do not use it. Authorised officials shall access the Application \nonly through a login-id and password or a Live OTP or Time OTP controlled \nmechanism that the bank provides. \n(3) The customer, for the purpose of KYC, shall visit the location of the authorised \nofficial of the bank or vice-versa. The original OVD shall be in possession of the \ncustomer. \n(4) The bank shall ensure that the authorised officer takes a Live photograph of the \ncustomer and embeds the same photograph in the Customer Application Form (CAF). \nFurther, the bank’s system Application shall put a watermark in readable form, \ncontaining the CAF number, GPS coordinates, authorised official’s name, unique \nemployee code (which the bank assigns) and date (DD:MM:YYYY) and time stamp \n(HH:MM:SS), on the captured live photograph of the customer."} |
| {"text": "(5) The bank’s Application shall have the feature that it captures only a live photograph \nof the customer and does not capture any printed or video graphed photograph. The \nbackground behind the customer while capturing live photograph shall be of white \ncolour and no other person shall come into the frame while capturing the live \nphotograph of the customer. \n(6) Similarly, the authorised officer shall capture the live photograph of the original OVD \nor proof of possession of Aadhaar where offline verification cannot be carried out \n(placed horizontally), vertically from above and shall apply a water-marking in readable \nform as mentioned above. The authorised officer shall ensure there is no skew or tilt \nin the mobile device while capturing the live photograph of the original documents. \n(7) The authorised officer shall capture the live photograph of the customer and his \noriginal documents in proper light so that they are clearly readable and identifiable. \n(8) Thereafter, the authorised officer shall fill all the entries in the CAF as per the \ndocuments and information furnished by the customer. In those documents where \nQuick Response (QR) code is available, such details may be auto-populated by \nscanning the QR code instead of manual filing the details. For example, in case of \nphysical Aadhaar / e-Aadhaar downloaded from UIDAI where QR code is available, \nthe details like name, gender, date of birth and address may be auto-populated by \nscanning the QR available on Aadhaar / e-Aadhaar. \n(9) Once the above-mentioned process is completed, a One Time Password (OTP) \nmessage containing the text that ‘Please verify the details filled in form before sharing \nOTP’ shall be sent to customer’s own mobile number. Upon successful validation of \nthe OTP, the bank will treat it as the customer’s signature on CAF. However, if the \ncustomer does not have their own mobile number, the bank may use the mobile \nnumber of their family / relatives / known persons for this purpose and clearly mention \nit in the CAF. In any case, the bank shall not use the mobile number of authorised \nofficer registered with the bank for the customer signature. The bank shall check that \nthe mobile number used in customer signature is not the mobile number of the \nauthorised officer. \n(10) The authorised officer shall provide a declaration about the capturing of the live \nphotograph of the customer and original document. For this purpose, the bank shall \nverify the authorised officer with One Time Password (OTP) which will be sent to his"} |
| {"text": "mobile number registered with the bank. Upon successful OTP validation, the bank \nshall treat it as the authorised officer’s signature on the declaration. The live \nphotograph of the authorised officer shall also be captured in this authorised officer’s \ndeclaration. \n(11) Subsequent to all these activities, the Application shall give information about the \ncompletion of the process and submission of activation request to activation officer of \nthe bank, and also generate the transaction-id / reference-id number of the process. \nThe authorised officer shall intimate the details regarding transaction-id / reference-id \nnumber to the customer for future reference. \n(12) The authorised officer of the bank shall check and verify that: \n(i) information available in the picture of the document matches with the information \nentered by authorised officer in CAF; \n(ii) live photograph of the customer matches with the photo available in the document; \nand \n(iii) the authorised officer has properly filled all of the necessary details in CAF, \nincluding mandatory field. \n(13) On Successful verification, the CAF shall be digitally signed by authorised officer \nof the bank who will take a print of CAF, get signatures / thumb-impression of customer \nat appropriate place, then scan and upload the same in system. Original hard copy \nmay be returned to the customer. \n(14) The bank may use the services of Business Correspondent (BC) for this process. \n25. Accounts opened using Aadhaar OTP based e-KYC, in non-face-to-face mode, are \nsubject to the following conditions: \n(1) The Customer shall give specific consent for the authentication through OTP. \n(2) As a risk-mitigating measure for such accounts, the bank shall ensure that it sends \ntransaction alerts, OTP, etc., only to the mobile number of the customer registered with \nAadhaar. The bank shall have a Board-approved policy delineating a robust process \nof due diligence for dealing with requests for change of mobile number in such \naccounts. \n(3) The aggregate balance of all the deposit accounts of the customer shall not exceed"} |
| {"text": "Rupees One Lakh. In case the balance exceeds the threshold, the bank shall cease \nthe account’s operation, until it completes the CDD as mentioned at (6) below. \n(4) The aggregate of all credits in a financial year, in all the deposit accounts taken \ntogether, shall not exceed Rupees Two Lakh. \n(5) As regards borrowal accounts, the bank shall sanction only term loans. The \naggregate amount of term loans sanctioned shall not exceed ₹60,000 in a year. \n(6) The bank shall not allow accounts, both deposit and borrowal, opened using OTP \nbased e-KYC to operate for more than one year unless it carries out identification as \nper paragraph 23 or as per paragraphs 26 and 27 (V-CIP). If the bank uses Aadhaar \ndetails under paragraphs 26 and 27, it shall follow the process in its entirety, including \nfresh Aadhaar OTP authentication. \n(7) If the bank does not complete the CDD procedure as mentioned above within a \nyear; (a) in respect of deposit accounts, the bank shall close the same immediately, \nand (b) in respect of borrowal accounts, the bank shall allow no further debits. \n(8) The bank shall obtain declaration from the customer to the effect that no other \naccount has been opened nor will be opened using OTP based KYC in non-face-to-\nface mode with any other RE. Further, while uploading KYC information to CKYCR, \nbank shall clearly indicate that such accounts are opened using OTP based e-KYC \nand other REs shall not open accounts based on the KYC information of accounts \nopened with OTP based e-KYC procedure in non-face- to-face mode. \n(9) The bank shall have strict monitoring procedures including systems to generate \nalerts in case of any non-compliance / violation, to ensure compliance with the above-\nmentioned conditions. \n26. The bank may undertake V-CIP to carry out: \n(1) CDD in case of new customer onboarding for individual customers, proprietor in \ncase of proprietorship firm, authorised signatories and Beneficial Owners (BOs) in case \nof Legal Entity (LE) customers. \nProvided that in case of CDD of a proprietorship firm, the bank shall also obtain the \nequivalent e-document of the activity proofs with respect to the proprietorship firm, as \nmentioned in paragraph 31 and paragraph 32, apart from undertaking CDD of the \nproprietor."} |
| {"text": "(2) Conversion of existing accounts opened in non-face-to-face mode using Aadhaar \nOTP based e-KYC authentication as per paragraph 25. \n(3) Updation / Periodic updation of KYC for eligible customers. \n27. The bank opting to undertake V-CIP, shall adhere to the following minimum \nstandards: \n(1) V-CIP Infrastructure \n(i) The bank shall have complied with the RBI guidelines on minimum baseline cyber \nsecurity and resilience framework for banks, as updated from time to time as well as \nother general guidelines on IT risks. The bank shall house the technology infrastructure \nin its own premises and the V-CIP connection and interaction shall necessarily \noriginate from its own secured network domain. Any technology related outsourcing for \nthe process shall comply with relevant RBI guidelines. Where the bank uses a cloud \ndeployment model, it shall ensure that ownership of data in such model rests with the \nbank only and all the data including video recording is transferred to the bank’s \nexclusively owned / leased server(s) including cloud server, if any, immediately after \nthe V-CIP process is completed and the cloud service provider or third-party \ntechnology provider assisting the V-CIP shall retain no data. \n(ii) The bank shall ensure end-to-end encryption of data between customer device and \nthe hosting point of the V-CIP application, as per appropriate encryption standards. \nThe bank shall record the customer consent in an auditable and alteration-proof \nmanner. \n(iii) The V-CIP infrastructure / application shall be capable of preventing connection \nfrom IP addresses outside India or from spoofed IP addresses. \n(iv) The video recordings shall contain the live GPS co-ordinates (geo-tagging) of the \ncustomer undertaking the V-CIP and date and time stamp. The quality of the live video \nin the V-CIP shall be adequate to allow identification of the customer beyond doubt. \n(v) The application shall have components with face liveness / spoof detection as well \nas face matching technology with high degree of accuracy, even though the ultimate \nresponsibility of any customer identification rests with the bank. \nExplanation: Making specific facial gestures, like blinking of eyes, smiling, frowning, \netc. is not mandatory for liveness check. The bank shall take due cognizance of special"} |
| {"text": "needs, if any, of the customer during liveness check. \n(vi) The bank may use appropriate artificial intelligence (AI) technology to ensure that \nthe V-CIP is robust. \n(vii) Based on experience of detected / attempted / ‘near-miss’ cases of forged identity, \nthe bank shall regularly update the technology infrastructure including application \nsoftware as well as workflows. The bank shall report any detected case of forged \nidentity through V-CIP as a cyber event under extant regulatory guidelines. \n(viii) The bank shall subject the V-CIP infrastructure to necessary tests such as \nVulnerability Assessment, Penetration testing and a Security Audit to ensure its \nrobustness and end-to-end encryption capabilities. The bank shall mitigate any critical \ngap reported under this process before rolling out its implementation. The empanelled \nauditors of Indian Computer Emergency Response Team (CERT-In) shall conduct \nsuch tests. Such tests shall also be carried out periodically in conformance to internal \n/ regulatory guidelines. \n(ix) The bank shall subject the V-CIP application software and relevant APIs / \nwebservices to appropriate testing of functional, performance, and maintenance \nstrength before being used in live environment. The bank shall roll out the application \nonly after closure of any critical gap found during such tests. Such tests shall also be \ncarried out periodically in conformity with internal / regulatory guidelines. \n(2) V-CIP Procedure \n(i) Each bank shall formulate a clear workflow and standard operating procedure for V-\nCIP and ensure adherence to it. The V-CIP process shall be operated only by officials \nof the bank specially trained for this purpose. The official shall be capable to carry out \nliveness check and detect any other fraudulent manipulation or suspicious conduct of \nthe customer and act upon it. The liveness check shall not result in exclusion of person \nwith special needs. \n(ii) Disruption of any sort including pausing of video, reconnecting calls, etc., may not \nresult in creation of multiple video files. If pause or disruption is not leading to the \ncreation of multiple files, then the bank may not initiate a fresh session. However, in \ncase of call drop / disconnection, fresh session shall be initiated. \n(iii) The bank shall vary the sequence and / or type of questions, including those"} |
| {"text": "indicating the liveness of the interaction, during video interactions to establish that the \ninteractions are real-time and not pre-recorded. \n(iv) The bank shall reject the account opening process if it observes any prompting at \nthe customer end. \n(v) The bank shall factor in the fact that the V-CIP customer is an existing or new \ncustomer, or if the case relates to one rejected earlier or if the name appears in some \nnegative list, at an appropriate stage of workflow. \n(vi) The authorised official of the bank performing the V-CIP shall record audio and \nvideo as well as capture a photograph of the customer present for identification and \nobtain the identification information using any one of the following: \n(a) OTP based Aadhaar e-KYC authentication. \n(b) Offline Verification of Aadhaar for identification. \n(c) KYC records downloaded from CKYCR, in accordance with paragraph 65, using \nthe KYC identifier provided by the customer. \n(d) Equivalent e-document of Officially Valid Documents (OVDs) including documents \nissued through DigiLocker. \n(vii) The bank shall ensure to redact or blackout the Aadhaar number in terms of \nparagraph 23. \n(viii) In case of offline verification of Aadhaar using XML file or Aadhaar Secure QR \nCode, the bank shall ensure that the XML file or QR code generation date is not older \nthan three working days from the date of carrying out V-CIP. \n(ix) Further, in line with the prescribed period of three working days for usage of \nAadhaar XML file / Aadhaar QR code, the bank shall ensure that it undertakes video \nprocess of the V-CIP within three working days of downloading / obtaining the \nidentification information through CKYCR / Aadhaar authentication / equivalent e-\ndocument, if in the rare cases, the entire process cannot be completed at one go or \nseamlessly. However, the bank shall ensure that no incremental risk is added due to \nthis. \n(x) If the address of the customer is different from that indicated in the OVD, the bank \nshall capture suitable records of the current address, as per the existing requirement."} |
| {"text": "The bank shall ensure that it also confirms the economic and financial profile / \ninformation submitted by the customer from the customer undertaking the V-CIP in a \nsuitable manner. \n(xi) The bank shall capture a clear image of PAN card displayed by the customer during \nthe process, except in cases where e-PAN is provided by the customer. The bank shall \nverify the PAN details from the database of the issuing authority ,including through \nDigiLocker. \n(xii) The use of printed copy of equivalent e-document, including an e-PAN is not valid \nfor the V-CIP. \n(xiii) The authorised official of the bank shall ensure that photograph of the customer \nin the Aadhaar / OVD and PAN / e-PAN matches with the customer undertaking the V-\nCIP and the identification details in Aadhaar / OVD and PAN / e-PAN shall match with \nthe details provided by the customer. \n(xiv) The bank shall permit assisted V-CIP when it takes help of Business \nCorrespondents (BCs) to facilitate the process only at the customer end. The bank \nshall maintain the details of the BC assisting the customer, where it utilises the services \nof BCs. The bank shall have the ultimate responsibility for customer due diligence. \n(xv) The bank shall make all accounts opened through V-CIP operational only after \nsubjecting them to concurrent audit to ensure the integrity of process and its \nacceptability of its outcome. \n(xvi) The bank shall appropriately comply with all matters not specified under the \nparagraph but required under other statutes such as the Information Technology (IT) \nAct. \n(3) V-CIP Records and Data Management \n(i) The bank shall store the entire data and recordings of V-CIP in a system / systems \nlocated in India. The bank shall ensure that the video recording is stored in a safe and \nsecure manner and bears the date and time stamp that affords easy historical data \nsearch. The extant instructions on record management, as stipulated in this direction, \nshall also apply to V-CIP. \n(ii) The bank shall preserve the activity log along with the credentials of the official \nperforming the V-CIP."} |
| {"text": "28. Notwithstanding anything contained in paragraph 23 and as an alternative thereto, \nin case an individual who desires to open a bank account, the bank shall open a ‘Small \nAccount’, which entails the following limitations: \n(1) the aggregate of all credits in a financial year does not exceed Rupees One Lakh; \n(2) the aggregate of all withdrawals and transfers in a month does not exceed ₹10,000; \nand \n(3) the balance at any point of time does not exceed ₹50,000. \nProvided that the bank shall not consider this limit on balance when making deposits \nthrough Government grants, welfare benefits and payment against procurements. \n(4) Further, small accounts are subject to the following conditions: \n(i) The bank shall obtain a self-attested photograph from the customer. \n(ii) The designated officer of the bank certifies under their signature that the person \nopening the account has affixed their signature or thumb impression in their presence. \nProvided that when the individual is a prisoner in a jail, they shall affix their signature \nor thumbprint in the presence of the officer-in-charge of the jail and the said officer \nshall certify the same under his signature. The account shall remain operational only if \nthe prisoner annually submits the proof of address that the officer in-charge of the jail \nissues. \n(iii) The bank shall open such accounts only at Core Banking Solution (CBS) linked \nbranches or in a branch where it is possible to manually monitor and ensure that it \ndoes not credit foreign remittances to the account. \n(iv) The bank shall ensure that the stipulated monthly and annual limits on aggregate \nof transactions and balance requirements in such accounts are not breached, before \nit allows a transaction to take place. \n(v) The account shall remain operational initially for a period of 12 months which the \nbank can extend for a further period of 12 months, provided the account holder applies \nand furnishes evidence of having applied for any of the OVDs during the first 12 months \nof the opening of the said account. \n(vi) The bank shall review the entire relaxation provisions after 24 months. \n(vii) Notwithstanding anything contained in clauses (v) and (vi) above, the small"} |
| {"text": "account shall remain operational between April 1, 2020, and June 30, 2020, and such \nother periods as the Central Government may notify. \n(viii) The bank shall monitor the account, and when there is suspicion of money \nlaundering or financing of terrorism activities or other high-risk scenarios, the bank \nshall establish the identity of the customer as per paragraph 23 or paragraphs 26 and \n27. \n(ix) The bank shall not allow foreign remittance to be credited into the account unless \nit fully establishes the identity of the customer as per paragraph 23 or paragraphs 26 \nand 27. \nProvided that if the bank renders any account ineligible for being classified as a small \naccount due to credits / balance in the account exceeding the permissible limits, the \nbank may allow withdrawals within the limit prescribed for small accounts where the \nlimits thereof have not been breached. \n29. KYC verification once done by one branch / office of the bank shall be valid for \ntransfer of the account to any other branch / office of the same bank, provided the bank \nhas already completed the full KYC verification for the concerned account and the \nsame is not due for periodic updation. \nB. CDD Measures for Sole Proprietary firms \n30. For opening an account in the name of a sole proprietary firm, the bank shall carry \nout the CDD of the individual (proprietor). \n31. In addition to the above, the bank shall also obtain any two of the following \ndocuments or the equivalent e-documents thereof as proof of business / activity in the \nname of the proprietary firm: \n(1) Registration certificate including Udyam Registration Certificate (URC) issued by \nthe Government. \n(2) Certificate / licence issued by the municipal authorities under Shop and \nEstablishment Act \n(3) Sales and income tax returns \n(4) CST / VAT / GST certificate \n(5) Certificate / registration document issued by Sales Tax / Service Tax / Professional"} |
| {"text": "Tax authorities \n(6) IEC (Importer Exporter Code) issued to the proprietary concern by the office of \nDGFT or Licence / certificate of practice issued in the name of the proprietary concern \nby any professional body incorporated under a statute \n(7) Complete Income Tax Return (not just the acknowledgement) in the name of the \nsole proprietor where the firm's income is reflected, duly authenticated / acknowledged \nby the Income Tax authorities \n(8) Utility bills such as electricity, water, landline telephone bills, etc. \n32. In cases where the bank is satisfied that it is not possible to furnish two such \ndocuments, the bank may, at its discretion, accept only one of those documents as \nproof of business / activity. \nProvided that the bank undertakes contact point verification and collects such other \ninformation and clarifications as would be required to establish the existence of such \nfirm, and shall confirm and satisfy itself that it has verified the business activity from the \naddress of the proprietary concern. \nC. CDD Measures for Legal Entities \n33. For opening an account of a company, the bank shall obtain certified copies of \neach of the following documents or the equivalent e-documents thereof: \n(1) Certificate of incorporation \n(2) Memorandum and Articles of Association \n(3) PAN of the company \n(4) A resolution from the Board of Directors and power of attorney granted to its \nmanagers, officers or employees to transact on its behalf \n(5) Documents, as specified in paragraph 23, relating to beneficial owner, managers, \nofficers or employees, as the case may be, holding an attorney to transact on the \ncompany’s behalf \n(6) The names of the relevant persons holding a senior management position; and \n(7) The registered office and the principal place of its business, if it is different. \n34. For opening an account of a partnership firm, the bank shall obtain the certified"} |
| {"text": "copies of each of the following documents or the equivalent e-documents thereof: \n(1) Registration certificate \n(2) Partnership deed \n(3) PAN of the partnership firm \n(4) Documents, as specified in paragraph 23, relating to beneficial owner, managers, \nofficers or employees, as the case may be, holding an attorney to transact on its behalf \n(5) the names of all the partners and \n(6) address of the registered office, and the principal place of its business, if it is \ndifferent. \n35. For opening an account of a trust, the bank shall obtain the certified copies of each \nof the following documents or the equivalent e-documents thereof: \n(1) Registration certificate \n(2) Trust deed \n(3) PAN or Form No.60 of the trust \n(4) Documents, as specified in paragraph 23, relating to beneficial owner, managers, \nofficers or employees, as the case may be, holding an attorney to transact on its behalf \n(5) the names of the beneficiaries, trustees, settlor, protector, if any and authors of the \ntrust \n(6) the address of the registered office of the trust; and \n(7) list of trustees and documents, as specified in paragraph 23, for those discharging \nthe role as trustee and authorised to transact on behalf of the trust. \n36. For opening an account of an unincorporated association or a body of individuals, \nthe bank shall obtain the certified copies of each of the following documents or the \nequivalent e-documents thereof: \n(1) Resolution of the managing body of such association or body of individuals \n(2) PAN or Form No. 60 of the unincorporated association or a body of individuals \n(3) Power of attorney granted to transact on its behalf \n(4) Documents, as specified in paragraph 23, relating to beneficial owner, managers,"} |
| {"text": "officers or employees, as the case may be, holding an attorney to transact on its behalf \nand \n(5) Such information as may be required by the bank to collectively establish the legal \nexistence of such an association or body of individuals. \nExplanation: Unregistered trusts / partnership firms shall be included under the term \n‘unincorporated association’. \nExplanation: The term ‘body of individuals’ includes societies. \n37. For opening account of a customer who is a juridical person (not specifically \ncovered in the earlier part) such as societies, universities and local bodies like village \npanchayats, etc., or who purports to act on behalf of such juridical person or individual \nor trust, the bank shall obtain and verify the certified copies of the following documents \nor the equivalent e-documents thereof: \n(1) Document showing name of the person authorised to act on behalf of the entity \n(2) Documents, as specified in paragraph 23, of the person holding an attorney to \ntransact on its behalf and \n(3) Such documents as may be required by the bank to establish the legal existence \nof such an entity / juridical person. \nProvided that in case of a trust, the bank shall ensure that trustees disclose their status \nat the time of commencement of an account-based relationship or when carrying out \ntransactions as specified in clauses (2), (5) and (6) of paragraph 21 of these directions. \nD. Identification of Beneficial Owner \n38. For opening an account of a Legal Person who is not a natural person, the bank \nshall identify the beneficial owner(s) and shall undertake all reasonable steps in terms \nof sub- rule (3) of Rule 9 of the Rules to verify their identity, keeping in view the \nfollowing: \n(1) Where the customer or the owner of the controlling interest is: \n(i) an entity listed on a stock exchange in India, or \n(ii) it is an entity resident in jurisdictions notified by the Central Government and listed \non stock exchanges in such jurisdictions, or"} |
| {"text": "(iii) it is a subsidiary of such listed entities; it is not necessary to identify and verify the \nidentity of any shareholder or beneficial owner of such entities. \n(2) In cases of trust / nominee or fiduciary accounts, the bank determines whether the \ncustomer is acting on behalf of another person as trustee / nominee or any other \nintermediary. In such cases, the bank shall obtain satisfactory evidence of the identity \nof the intermediaries and of the persons on whose behalf they are acting, as well as \ndetails of the nature of the trust or other arrangements in place. \nE. On-going Due Diligence \n39. The bank shall undertake ongoing due diligence of customers to ensure that their \ntransactions are consistent with their knowledge about the customers, customers’ \nbusiness and risk profile, the source of funds / wealth. \n40. Without prejudice to the generality of factors that call for close monitoring, the bank \nshall necessarily monitor the following types of transactions: \n(1) Large and complex transactions including RTGS transactions, and those with \nunusual patterns, inconsistent with the normal and expected activity of the customer, \nwhich have no apparent economic rationale or legitimate purpose. \n(2) Transactions which exceed the thresholds prescribed for specific categories of \naccounts. \n(3) High account turnover inconsistent with the size of the balance maintained. \n(4) Deposit of third-party cheques, drafts, etc. in the existing and newly opened \naccounts followed by cash withdrawals for large amounts. \nFor ongoing due diligence, the bank may consider adopting appropriate innovations \nincluding artificial intelligence and machine learning (AI and ML) technologies to \nsupport effective monitoring. \n41. The bank shall align the extent of monitoring with the risk category of the \ncustomer. \n(1) The bank shall put in place a system of periodic review of risk categorisation of \naccounts, with such periodicity being at least once in every six months, and shall \nestablish the need for applying enhanced due diligence measures. \n(2) The bank shall closely monitor the transactions in accounts of marketing firms,"} |
| {"text": "especially accounts of Multi-level Marketing (MLM) companies. \nExplanation: The bank shall subject high-risk accounts to more intensified monitoring. \nExplanation: Cases where a large number of cheque books are sought by the company \nand / or multiple small deposits (generally in cash) across the country in one bank \naccount and / or where a large number of cheques are issued bearing similar amounts \n/ dates, shall be immediately reported to RBI and other appropriate authorities such as \nFIU-IND. \n42. Updation / Periodic Updation of KYC \n(1) The bank shall adopt a risk-based approach for periodic updation of KYC ensuring \nthat it keeps the information or data collected under CDD is kept up-to-date and \nrelevant, particularly where there is high risk. However, the bank shall carry out periodic \nupdation at least once in every two years for high-risk customers, once in every eight \nyears for medium risk customers and once in every 10 years for low-risk customers \nfrom the date of opening of the account / last KYC updation. The bank shall document \nits policy in this regard as part of the bank’s internal KYC policy duly approved \nby the Board of Directors of bank or any committee of the Board to which power has been \ndelegated. \n(2) Notwithstanding the provisions given above, in respect of an individual customer \nwho is categorised as low-risk, the bank shall allow all transactions and ensure the \nupdation of KYC within one year of its falling due for KYC or up to June 30, 2026, \nwhichever is later. The bank shall subject accounts of such customers to regular \nmonitoring. This shall also apply to low-risk individual customers for whom periodic \nupdation of KYC has already fallen due. \n(3) Individuals: \n(i) No change in KYC information: In case of no change in the KYC information, the \nbank shall obtain a self-declaration from the customer in this regard through the \ncustomer’s email-id registered with the bank, customer’s mobile number registered \nwith the bank, ATMs, or digital channels (such as online banking / internet banking, \nmobile application of bank) letter, etc. \n(ii) Change in address: In case of a change only in the address details of the \ncustomer, the bank shall obtain a self-declaration of the new address from the"} |
| {"text": "customer through customer’s email-id registered with the bank, customer’s mobile \nnumber registered with the bank, ATMs, digital channels (such as online banking / \ninternet banking, mobile application of bank), letter, etc., and shall verify the declared \naddress through positive confirmation within two months, by means such as address \nverification letter, contact point verification, deliverables, etc. \n(iii) Further, the bank at its option, may obtain a copy of OVD or deemed OVD, as \ndefined in sub-clause (xiv) of clause (1) of paragraph 5, or the equivalent e-documents \nthereof, as defined in sub-clause (x) of clause (1) of paragraph 5, for the purpose of \nproof of address, declared by the customer at the time of updation / periodic updation. \nHowever, the bank shall clearly specify such requirement, in its internal KYC policy \nduly approved by the Board of Directors of the bank or any committee of the Board to \nwhich power has been delegated. \n(iv) Use of Business Correspondent (BC) by banks for Updation / Periodic Updation of \nKYC: The bank may obtain a self-declaration from the customer in case of no change \nin KYC information or change only in the address details through an authorised BC of \nthe bank. The bank shall enable its BC systems for recording these self-declarations \nand supporting documents thereof in electronic form in the bank’s systems. \nThe bank shall obtain the self-declaration including the supporting documents, if \nrequired, in the electronic mode from the customer through the BC, after successful \nbiometric based e-KYC authentication. Until the bank makes an option available in the \nelectronic mode, the customer may submit such declaration in physical form. The BC \nshall authenticate the self-declaration and supporting documents submitted in person \nby the customer and promptly forward the same to the concerned bank branch. The \nBC shall provide the customer an acknowledgment of receipt of such declaration \n/submission of documents. \nThe bank shall update the customer’s KYC records and intimate the customer once \nthe records get updated in the system, as required under clause (5) of paragraph 42 \nof the Direction. It is, however, reiterated that the concerned bank retains the ultimate \nresponsibility for periodic updation of KYC. \n(v) Accounts of customers, who were minor at the time of opening account, on their \nbecoming major: In case of customers for whom the bank opened an account when \nthey were minors, the bank shall obtain fresh photographs upon their becoming a major"} |
| {"text": "and, at that time, shall ensure that CDD documents as per the current CDD standards \nare available. Wherever required, the bank may carry out fresh KYC of such \ncustomers, i.e., customers for whom it opened account when they were minor, upon \ntheir becoming a major. \n(vi) The bank may use Aadhaar OTP based e-KYC in non-face-to-face mode for \nupdation / periodic updation. To clarify, conditions stipulated in paragraph 25 are not \napplicable in case of updation / periodic updation of KYC through Aadhaar OTP based \ne-KYC in non-face to face mode. \n(vii) Declaration of current address, if the current address is different from the address \nin Aadhaar, shall not require positive confirmation in this case. The bank shall ensure \nthat the mobile number for Aadhaar authentication is same as the one available with \nthem in the customer’s profile, in order to prevent any fraud. \n(4) Customers other than individuals: \n(i) No change in KYC information: In case of no change in the KYC information of \nthe LE customer, the bank shall obtain a self-declaration in this regard from the LE \ncustomer through its email id registered with the bank, ATMs, digital channels (such \nas online banking / internet banking, mobile application of bank), letter from an official \nauthorised by the LE in this regard, board resolution, etc. Further, the bank shall ensure \nduring this process that Beneficial Ownership (BO) information available with them is \naccurate and shall update the same, if required, to keep it as up-to-date as possible. \n(ii) Change in KYC information: In case of change in KYC information, the bank shall \nundertake the KYC process equivalent to that applicable for onboarding a new LE \ncustomer. \n(5) Additional measures: In addition to the above, the bank shall ensure that: \n(i) The bank has customer’s KYC document as per the current CDD standards \navailable with it. This is applicable even if there is no change in customer information \nbut the documents available with the bank are not as per the current CDD standards. \nFurther, in case the validity of the CDD documents available with the bank has expired \nat the time of periodic updation of KYC, the bank shall undertake the KYC process \nequivalent to that applicable for onboarding a new customer. \n(ii) The bank verifies the customer’s PAN details, if available, from the database of the"} |
| {"text": "issuing authority at the time of periodic updation of KYC. \n(iii) The bank provides an acknowledgment to the customer mentioning the date of \nreceipt of the relevant document(s), including self-declaration from the customer, for \ncarrying out updation / periodic updation. Further, the bank shall ensure that it promptly \nupdates the information / documents obtained from the customers at the time of \nupdation / periodic updation of KYC in its records / database and provide an intimation, \nmentioning the date of updation of KYC details, to the customer. \n(iv) In order to ensure customer convenience, the bank may consider making available \nthe facility of updation / periodic updation of KYC at any branch, in terms of their internal \nKYC policy duly approved by the Board of Directors of the bank or any committee of \nthe Board to which power has been delegated. \n(v) The bank shall adopt a risk-based approach with respect to periodic updation of \nKYC. The bank shall clearly specify in its internal policy, duly approved by the Board \nof Directors of the bank or any committee of the Board to which power has been \ndelegated, any additional and exceptional measures, it adopts that are not otherwise \nmandated under the above instructions, such as requirement of obtaining recent \nphotograph, requirement of physical presence of the customer, requirement of periodic \nupdation of KYC only in the branch of the bank where account is maintained, a more \nfrequent periodicity of KYC updation than the minimum specified periodicity etc. \n(6) The bank shall advise the customers that in order to comply with the PML Rules, in \ncase of any update in the documents submitted by the customer at the time of \nestablishment of business relationship / account-based relationship and thereafter, as \nnecessary; customers shall submit to the bank the update of such documents. This \nshall be done within 30 days of the update to the documents for the purpose of updating \nthe records at the bank’s end. \n(7) Due Notices for Periodic Updation of KYC: The bank shall intimate its customers, \nin advance, to update their KYC. Prior to the due date of periodic updation of KYC, the \nbank shall give at least three advance intimations, including at least one intimation by \nletter, at appropriate intervals to its customers through available communication \noptions / channels for complying with the requirement of periodic updation of KYC. \nSubsequent to the due date, the bank shall give at least three reminders, including at \nleast one reminder by letter, at appropriate intervals, to such customers who have still"} |
| {"text": "not complied with the requirements, despite advance intimations. The letter of \nintimation / reminder may, inter alia, contain easy-to-understand instructions for \nupdating KYC, escalation mechanism for seeking help, if required, and the \nconsequences, if any, of failure to update their KYC in time. Issue of such advance \nintimation / reminder shall be duly recorded in the bank’s system against each \ncustomer for audit trail. The bank shall expeditiously implement the same but not later \nthan January 01, 2026. \n43. In case of existing customers, the bank shall obtain the PAN or equivalent e-\ndocument thereof or Form No. 60, by such date which the Central Government may \nnotify, failing which the bank shall temporarily cease operations in the account until the \ncustomer submits the PAN or equivalent e-documents thereof or Form No. 60. \nProvided that before temporarily ceasing operations for an account, the bank shall give \nthe customer an accessible notice and a reasonable opportunity to be heard. Further, \nthe bank shall include, in its internal policy, appropriate relaxation(s) for continued \noperation of accounts for customers who are unable to provide PAN or equivalent e-\ndocument thereof or Form No. 60 owing to injury, illness or infirmity on account of old \nage or otherwise, and such like causes. However, the bank shall subject such accounts \nto enhanced monitoring. \nProvided further that if a customer having an existing account-based relationship with \na bank gives in writing to the bank that they do not want to submit their PAN or \nequivalent e-document thereof or Form No. 60, the bank shall close the account and \nall obligations due in relation to the account shall be appropriately settled after \nestablishing the identity of the customer by obtaining the identification documents as \napplicable to the customer. \nExplanation: For the purpose of this paragraph, ‘temporary ceasing of operations’ in \nrelation to an account shall mean the temporary suspension of all transactions or \nactivities in relation to that account by the bank till such time the customer complies \nwith the provisions of this paragraph. In case of asset accounts such as loan accounts, \nfor the purpose of ceasing the operation in the account, only credits shall be allowed. \nF. Enhanced and Simplified Due Diligence Procedure \nF.1 Enhanced Due Diligence \n44. Enhanced Due Diligence (EDD) for non-face-to-face customer onboarding (other"} |
| {"text": "than customer onboarding in terms of paragraph 25): Non-face-to-face onboarding \nfacilitates the bank to establish a relationship with the customer without meeting the \ncustomer physically or through V-CIP. Such non-face-to-face modes for the purpose \nof this paragraph include use of digital channels such as CKYCR, DigiLocker, \nequivalent e-document, etc., and non- digital modes such as obtaining copy of OVD \ncertified by additional certifying authorities as allowed for NRIs and PIOs. The bank \nshall undertake the following EDD measures for non-face-to-face customer onboarding \n(other than customer onboarding in terms of paragraph 25): \n(1) If the bank has introduced the process of V-CIP, it shall provide the same as the \nfirst option to the customer for remote onboarding. It is reiterated that the bank shall \ntreat processes complying with prescribed standards and procedures for V-CIP on par \nwith face-to-face CIP for the purpose of these Directions. \n(2) In order to prevent frauds, alternate mobile numbers shall not be linked post CDD \nwith such accounts for transaction OTP, transaction updates, etc. The bank shall \npermit transactions only from the mobile number used for account opening. The bank \nshall have a Board-approved policy delineating a robust process of due diligence for \ndealing with requests for change of registered mobile number. \n(3) Apart from obtaining the current address proof, the bank shall verify the current \naddress through positive confirmation before allowing operations in the account. The \nbank may carry out the positive confirmation by means of such as address verification \nletter, contact point verification, deliverables, etc. \n(4) The bank shall obtain PAN from the customer and the PAN shall be verified from \nthe verification facility of the issuing authority. \n(5) First transaction in such accounts shall be a credit from existing KYC-complied \nbank account of the customer. \n(6) The bank shall categorise such customers as high-risk customers and shall subject \naccounts opened in non-face-to-face mode to enhanced monitoring until the identity of \nthe customer is verified in face-to-face manner or through V-CIP. \n45. Accounts of Politically Exposed Persons (PEPs) \n(1) The bank shall have the option of establishing a relationship with PEPs (whether \nas customer or beneficial owner) provided that, apart from performing normal customer"} |
| {"text": "due diligence: \n(i) the bank has in place appropriate risk management systems to determine whether \nthe customer or the beneficial owner is a PEP; \n(ii) The bank shall take reasonable measures for establishing the source of funds / \nwealth; \n(iii) the bank shall obtain approval to open an account for a PEP from the senior \nmanagement; \n(iv) the bank subjects all such accounts to enhanced monitoring on an on-going basis; \n(v) in the event of an existing customer or the beneficial owner of an existing account \nsubsequently becoming a PEP, the bank obtains the senior management’s approval \nto continue the business relationship; \n(2) These instructions shall also apply to family members or close associates of PEPs. \nExplanation: For the purpose of this paragraph, ‘Politically Exposed Persons’ (PEPs) \nare individuals who are or have been entrusted with prominent public functions by \na foreign country, including the Heads of States / Governments, senior \npoliticians, senior government or judicial or military officers, senior executives of \nstate-owned corporations and important political party officials. \n46. Client accounts opened by professional intermediaries: The bank shall ensure \nwhile opening client accounts through professional intermediaries, that: \n(1) The bank shall identify clients when a professional intermediary opens a client \naccount on behalf of a single client. \n(2) The bank shall have option to hold 'pooled' accounts managed by professional \nintermediaries on behalf of entities like mutual funds, pension funds or other types of \nfunds. \n(3) The bank shall not open accounts of such professional intermediaries who are \nbound by any client confidentiality which prohibits disclosure of the client details to the \nbank. \n(4) The bank shall identify all the beneficial owners where intermediaries do not co-\nmingle funds at the level of the bank, and there are 'sub- accounts', each of them \nattributable to a beneficial owner, or where such funds are co-mingled at the level of"} |
| {"text": "the bank, the bank shall look for the beneficial owners. \n(5) The bank shall, at their discretion, rely on the 'customer due diligence' (CDD) done \nby an intermediary, provided that the intermediary is a regulated and supervised entity \nand has adequate systems in place to comply with the KYC requirements of the \ncustomers. \n(6) The ultimate responsibility for knowing the customer lies with the bank. \nF.2 Simplified Due Diligence \n47. Simplified norms for Self Help Groups (SHGs): \n(1) The bank shall not require CDD of all the members of an SHG while opening the \nsavings bank account of the SHG. \n(2) The CDD of all the office bearers shall suffice. \n(3) The bank may undertake CDD of all the members of an SHG at the time of credit \nlinking of SHGs. \n48. Procedure to be followed by the bank while opening accounts of foreign \nstudents \n(1) The bank shall, at its option, open a Non-Resident Ordinary (NRO) bank account of \na foreign student on the basis of his / her passport (with visa and immigration \nendorsement) bearing the proof of identity and address in the home country together \nwith a photograph and a letter offering admission from the educational institution in \nIndia. \nProvided that the bank shall obtain a declaration about the local address within a period \nof 30 days of opening the account and shall verify the said local address. \nProvided further that pending the verification of address, the account shall be operated \nwith the condition that allows foreign remittances not exceeding USD 1,000 or \nequivalent into the account and a cap of ₹50,000 on aggregate withdrawal of the same, \nduring the 30-day period. \n(2) The account shall be treated as a normal NRO account, and shall be operated in \nterms of RBI’s instructions on Non-Resident Ordinary Rupee (NRO) Account, and the \nprovisions of FEMA 1999. \n(3) Students with Pakistani nationality shall require prior approval of the RBI for"} |
| {"text": "opening the account. \n49. Simplified KYC norms for Foreign Portfolio Investors (FPIs): \n(1) Accounts of FPIs which are eligible / registered as per SEBI guidelines, for the \npurpose of investment under Portfolio Investment Scheme (PIS), shall be opened by \naccepting KYC documents as detailed in (2) below, subject to Income Tax (FATCA / \nCRS) Rules. \nProvided that the bank shall obtain an undertaking from FPIs or the Global Custodian \nacting on behalf of the FPI that as and when required, the exempted documents as \ndetailed in (2) below will be submitted. \n(2) KYC documents for eligible FPIs under PIS: \n \nFPI Type \nDocument Type \nCategory I \nCategory II \nCategory III \nEntity Level \nConstitutive \nDocuments \n(Memorandum \nand Articles of \nAssociation, \nCertificate of \nIncorporation \netc.) \nMandatory \nMandatory \nMandatory \nProof of \nAddress \nMandatory \n(Power of \nAttorney {PoA} \nmentioning the \naddress is \nacceptable as \naddress proof) \nMandatory \n(Power of \nAttorney \nmentioning the \naddress is \nacceptable as \naddress proof) \nMandatory \nother than \nPower of \nAttorney \nPAN \nMandatory \nMandatory \nMandatory \nFinancial Data Exempted * \nExempted * \nMandatory \nSEBI \nRegistration \nCertificate \nMandatory \nMandatory \nMandatory \nBoard \nResolution \n@@ \nExempted * \nMandatory \nMandatory"} |
| {"text": "Senior \nManagement \n(Whole Time \nDirectors/ \nPartners/ \nTrustees/ \netc.) \nList \nMandatory \nMandatory \nMandatory \nProof of \nIdentity \nExempted * \nExempted * \nEntity \ndeclares* on \nletter head full \nname, \nnationality, \ndate of birth or \nsubmits photo \nidentity proof \nProof of \nAddress \nExempted * \nExempted * \nDeclaration on \nLetter Head * \n \nAuthorised \nSignatories \nPhotographs \nExempted \nExempted \nExempted * \nList and \nSignatures \nMandatory – list \nof Global \nCustodian \nsignatories can \nbe given in case \nof PoA to Global \nCustodian \nMandatory - list \nof Global \nCustodian \nsignatories can \nbe given in case \nof PoA to Global \nCustodian \nMandatory \nProof of \nIdentity \nExempted * \nExempted * \nMandatory \nProof of \nAddress \nExempted * \nExempted * \nDeclaration on \nLetter Head * \nPhotographs \nExempted \nExempted \nExempted * \nUltimate \nBeneficial \nOwner (UBO) \nList \nExempted * \nMandatory \nMandatory \nProof of \nIdentity \nExempted * \nExempted * \nMandatory \nProof of \nAddress \nExempted * \nExempted * \nDeclaration on \nLetter Head * \nPhotographs \nExempted \nExempted \nExempted * \n* Not required while opening the bank account. However, FPIs concerned may submit \nan undertaking that upon demand by Regulators/Law Enforcement Agencies the \nrelative document/s would be submitted to the bank."} |
| {"text": " @@ FPIs from certain jurisdictions where the practice of passing Board Resolution \nfor the purpose of opening bank accounts etc. is not in vogue, may submit ‘Power of \nAttorney granted to Global Custodian/Local Custodian in lieu of Board Resolution’ \nCategory \nEligible Foreign Investors \nI. \nGovernment and Government related foreign investors such \nas Foreign Central Banks, Governmental Agencies, \nSovereign Wealth Funds, International/ Multilateral \nOrganisations/ Agencies. \nII. \nAppropriately regulated broad based funds such as Mutual \nFunds, Investment Trusts, Insurance / Reinsurance \nCompanies, Other Broad Based Funds etc. \nAppropriately regulated entities such as Banks, Asset \nManagement Companies, Investment Managers/ Advisors, \nPortfolio Managers etc. \nBroad \nbased \nfunds \nwhose \ninvestment \nmanager \nis \nappropriately regulated. \nUniversity Funds and Pension Funds. \nUniversity related Endowments already registered with SEBI \nas FII/Sub Account. \nIII. \nAll other eligible foreign investors investing in India under PIS \nroute not eligible under Category I and II such as \nEndowments, Charitable Societies/Trust, Foundations, \nCorporate Bodies, Trusts, Individuals, Family Offices, etc."} |
| {"text": "Chapter VII – Record Management \n50. The bank shall take the following steps regarding maintenance, preservation \nand reporting of customer information, with reference to provisions of PML Act and \nRules. The bank shall, \n(1) maintain all necessary records of transactions between the bank and the customer, \nboth domestic and international, for at least five years from the date of transaction; \n(2) preserve the records pertaining to the identification of the customers and their \naddresses, obtained while opening the account and during the course of business \nrelationship, for at least five years after the business relationship has ended; \n(3) swiftly make available, the identification records and transaction data to the \ncompetent authorities upon request; \n(4) introduce a system of maintaining proper records of transactions prescribed under \nRule 3 of Prevention of Money Laundering (Maintenance of Records) Rules, 2005 \n(PML Rules, 2005); \n(5) maintain all necessary information in respect of transactions prescribed under PML \nRule 3 to permit the reconstruction of an individual transaction, including the \nfollowing: \n(i) the nature of the transactions; \n(ii) the amount of the transaction and the currency in which it was denominated; \n(iii) the date on which the transaction was conducted; and \n(iv) the parties to the transaction. \n(6) evolve a system for proper maintenance and preservation of account information \nin a manner that allows the bank to retrieve data easily and quickly whenever required \nor when competent authorities request it; \n(7) maintain records of the identity and address of its customers, and records in respect \nof transactions referred to in Rule 3 in hard or soft format. \nExplanation – For the purpose of this paragraph, the expressions ‘records pertaining \nto the identification’, ‘identification records’, etc., shall include updatedrecords of the \nidentification data, account files, business correspondence and results of any analysis"} |
| {"text": "undertaken. \n51. The bank shall ensure that in case of customers who are non-profit organisations, \nthe bank registers details of such customers on the DARPAN Portal of NITI Aayog. If \nthey are not registered, the bank shall register the details on the DARPAN Portal. The \nbank shall also maintain such registration records for a period of five years after the \nbusiness relationship between the customer and the bank has ended or the account \nhas been closed, whichever is later."} |
| {"text": "Chapter VIII – Reporting Requirements to Financial Intelligence Unit – India \n52. The bank shall furnish to the Director, Financial Intelligence Unit-India (FIU-\nIND), the information referred to in Rule 3 of the PML (Maintenance of Records) \nRules, 2005 in accordance with Rule 7 thereof. \nExplanation: In terms of Third Amendment Rules notified September 22, 2015 \nregarding amendment to sub rule 3 and 4 of rule 7, Director, FIU-IND shall have powers \nto issue guidelines to the REs for detecting transactions referred to in various clauses \nof sub-rule (1) of rule 3, to direct them about the form of furnishing information and to \nspecify the procedure and the manner of furnishing information. \n53. The bank shall take note of the reporting formats and comprehensive reporting \nformat guide, prescribed / released by FIU-IND and Report Generation Utility and \nReport Validation Utility developed to assist reporting entities in the preparation of \nprescribed reports. The bank which is yet to install / adopt suitable technological \ntools for extracting CTR / STR from its live transaction data shall make use of the \neditable electronic utilities to file electronic Cash Transaction Reports (CTR) / \nSuspicious Transaction Reports (STR) which FIU- IND has placed on its website. \nThe Principal Officer of the bank, shall have suitable arrangement to cull out the \ntransaction details from branches which are yet to be computerised and to feed \nthe data into an electronic file with the help of the editable electronic utilities of CTR \n/ STR as have been made available by FIU-IND on its website http://fiuindia.gov.in. \n54. When furnishing information to the Director, FIU-IND, a delay of each day in \nnot reporting a transaction or delay of each day in rectifying a mis-represented \ntransaction beyond the time limit as specified in the Rule shall constitute as a \nseparate violation. The bank shall not put any restriction on operations in the \naccounts merely on the basis of the STR filed. \nThe bank, its directors, officers, and all employees shall ensure that the fact of \nmaintenance of records referred to in rule 3 of the PML (Maintenance of Records) \nRules, 2005, and furnishing of the information to the Director is confidential. \nHowever, such confidentiality requirement shall not inhibit sharing of information \nunder paragraph 8 of these Directions of any analysis of transactions and activities \nwhich appear unusual, if the bank has done any such analysis. \n55. To identify and report suspicious transactions effectively, the bank shall implement"} |
| {"text": "robust software that generates alerts when transactions are inconsistent with a \ncustomer's risk categorisation and updated profile."} |
| {"text": "Chapter IX – Requirements/obligations under International Agreements - \nCommunications from International Agencies \n56. Obligations under the Unlawful Activities (Prevention) (UAPA) Act, 1967: \n(1) The bank shall ensure that in terms of section 51A of the Unlawful Activities \n(Prevention) (UAPA) Act, 1967 and amendments thereto, it does not have any account \nin the name of individuals / entities appearing in the lists of individuals and entities, \nsuspected of having terrorist links, which are approved by and periodically circulated \nby the United Nations Security Council (UNSC). The details of the two lists are as \nunder: \n(i) The ‘ISIL (Da’esh) and Al-Qaida Sanctions List’, established and maintained \npursuant to Security Council resolutions 1267 / 1989 / 2253, which includes names \nof \nindividuals \nand \nentities \nassociated \nwith \nAl-Qaida, \nis \navailable \nat \nwww.un.org/securitycouncil/sanctions/1267/aq_sanctions_list \n(ii) The ‘Taliban Sanctions List’, established and maintained pursuant to Security \nCouncil resolution 1988 (2011), which includes names of individuals and entities \nassociated \nwith \nthe \nTaliban \nis \navailable \nat \nhttps://www.un.org/securitycouncil/sanctions/1988/materials \n(2) The bank shall also ensure to refer to the lists as available in the Schedules to the \nPrevention and Suppression of Terrorism (Implementation of Security Council \nResolutions) Order, 2007, as amended from time to time. The bank shall verify the \naforementioned lists, i.e., UNSC Sanctions Lists and lists as available in the Schedules \nto the Prevention and Suppression of Terrorism (Implementation of Security Council \nResolutions) Order, 2007, as amended from time to time, on a daily basis, and any \nmodifications to the lists in terms of additions, deletions or other changes shall be taken \ninto account by the bank for meticulous compliance. \n(3) The bank shall report the details of accounts resembling any of the individuals / \nentities in the lists to FIU-IND in addition to advising the Ministry of Home Affairs \n(MHA) as required under UAPA notification dated February 2, 2021 (Annex I of these \nDirections). \n(4) Freezing of Assets under Section 51A of UAPA, 1967: The bank shall strictly follow \nthe procedure laid down in the UAPA Order dated February 2, 2021 (Annex I of these"} |
| {"text": "Directions), and shall ensure the meticulous compliance with the Order issued by the \nGovernment. The list of Nodal Officers for UAPA is available on the website of MHA. \n57. Obligations under Weapons of Mass Destruction (WMD) and their Delivery \nSystems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act, 2005): \n(1) The bank shall ensure meticulous compliance with the ‘Procedure for \nImplementation of Section 12A of the Weapons of Mass Destruction (WMD) and their \nDelivery Systems (Prohibition of Unlawful Activities) Act, 2005’ laid down in terms of \nsection 12A of the WMD Act, 2005 vide Order dated September 1, 2023, by the Ministry \nof Finance, Government of India (Annex II of these Directions). \n(2) In accordance with paragraph 3 of the aforementioned Order, the bank shall ensure \nnot to carry out transactions in case the particulars of the individual / entity match with \nthe particulars in the designated list. \n(3) Further, the bank shall run a check, on the given parameters, at the time of \nestablishing a relation with a customer and on a periodic basis to verify whether \nindividuals and entities in the designated list are holding any funds, financial asset, \netc., in the form of bank account, etc. \n(4) In case of a match in the above cases, the bank shall immediately inform the \ntransaction details with full particulars of the funds, financial assets or economic \nresources involved to the Central Nodal Officer (CNO), designated as the authority to \nexercise powers under section 12A of the WMD Act, 2005. The bank shall send a copy \nof the communication to the State Nodal Officer, where the account / transaction is \nheld and to the RBI. \n(5) The bank may note that, in terms of Paragraph 1 of the Order, Director, FIU-India \nhas been designated as the CNO. \n(6) The bank may refer to the designated list, as amended from time to time, available \non the portal of FIU-India. \n(7) In case there are reasons to believe beyond doubt that funds or assets held by a \ncustomer would fall under the purview of clause (a) or (b) of sub-section (2) of section \n12A of the WMD Act, 2005, the bank shall prevent such individual / entity from \nconducting financial transactions, under intimation to the CNO by email, FAX and by \npost, without delay."} |
| {"text": "(8) In case the bank receives an order to freeze assets under section 12A from the \nCNO, the bank shall, without delay, take necessary action to comply with the Order. \n(9) The bank shall observe the process of unfreezing of funds, etc., as per paragraph \n7 of the Order. Accordingly, the bank shall forward a copy of application received from \nan individual / entity regarding unfreezing, along with full details of the asset frozen, as \ngiven by the applicant, to the CNO by email, FAX and by post, within two working days. \n58. The bank shall verify every day, the ‘UNSCR 1718 Sanctions List of Designated \nIndividuals and Entities‘, as available at https://www.mea.gov.in/Implementation-of-\nUNSC-Sanctions-DPRK.htm, to take into account any modifications to the list in terms \nof additions, deletions or other changes and also ensure compliance with the \n‘Implementation of Security Council Resolution on Democratic People’s Republic of \nKorea Order, 2017’, as amended from time to time by the Central Government. \n59. In addition to the above, the bank shall take into account: \n(1) other UNSCRs and \n(2) lists in the first schedule and the fourth schedule of UAPA, 1967 and any \namendments to the same for compliance with the Government orders on \nimplementation of section 51A of the UAPA and section 12A of the WMD Act. \n60. The bank shall undertake countermeasures when called upon so to do by any \ninternational or intergovernmental organisation of which India is a member and which \nis accepted by the Central Government. \n61. Jurisdictions that do not or insufficiently apply the FATF Recommendations: \n(1) The bank shall consider the FATF Statements circulated by the RBI from time to \ntime, and publicly available information, for identifying countries, which do not or \ninsufficiently apply the FATF Recommendations. The bank shall apply enhanced due \ndiligence measures, which are effective and proportionate to the risks, to business \nrelationships and transactions with natural and legal persons (including financial \ninstitutions) from countries for which this is called for by the FATF. \n(2) The bank shall give special attention to business relationships and transactions with \npersons (including legal persons and other financial institutions) from or in countries \nthat do not or insufficiently apply the FATF Recommendations and jurisdictions \nincluded in FATF Statements."} |
| {"text": "Explanation: The processes referred to in (1) and (2) above do not preclude the bank from \nhaving legitimate trade and business transactions with the countries and jurisdictions \nmentioned in the FATF statement. \n(3) The bank shall examine the background and purpose of transactions with persons \n(including legal persons and other financial institutions) from jurisdictions included in \nFATF Statements and countries that do not or insufficiently apply the FATF \nRecommendations, retain written findings together with all documents, and make them \navailable to the RBI / other relevant authorities, on request. \n62. The bank is encouraged to leverage latest technological innovations and tools for \neffective implementation of name screening to meet the sanctions requirements."} |
| {"text": "Chapter X – Other Instructions \n63. Secrecy Obligations and Sharing of Information: \n(1) The bank shall maintain secrecy regarding the customer information that arises out \nof the contractual relationship between the bank and the customer. \n(2) The bank shall treat information collected from customers for the purpose of \nopening of account as confidential and shall not divulge details thereof for the purpose \nof cross-selling, or for any other purpose without the express permission of the \ncustomer. \n(3) While considering the requests for data / information from Government and other \nagencies, the bank shall satisfy itself that the information being sought is not of such a \nnature as will violate the provisions of the laws relating to secrecy in the transactions. \n(4) The exceptions to the said rule shall be as under: \n(i) \nWhere disclosure is under compulsion of law, \n(ii) \nWhere there is a duty to the public to disclose, \n(iii) Where the interest of the bank requires disclosure, and \n(iv) Where the disclosure is made with the express or implied consent of the \ncustomer. \n64. Compliance with the provisions of Foreign Contribution (Regulation) Act, \n2010: The bank shall ensure adherence to the provisions of Foreign Contribution \n(Regulation) Act, 2010, and Rules made thereunder. Further, the bank shall also \nensure meticulous compliance with any instructions / communications on the matter \nissued from time to time by the RBI based on advice received from the Ministry of \nHome Affairs, Government of India. \n65. CDD Procedure and sharing KYC information with Central KYC Records \nRegistry (CKYCR) \n(1) Government of India has authorised the Central Registry of Securitisation Asset \nReconstruction and Security Interest of India (CERSAI), to act as, and to perform the \nfunctions of the CKYCR vide Gazette Notification No. S.O. 3183(E) dated November 26, \n2015."} |
| {"text": "(2) In terms of provision of Rule 9(1A) of the PML Rules, the bank shall capture \ncustomer’s KYC records and upload onto CKYCR within 10 days of commencement \nof an account-based relationship with the customer. \n(3) Operational Guidelines for uploading the KYC data have been released by \nCERSAI. \n(4) The bank shall capture the KYC information for sharing with the CKYCR in the \nmanner mentioned in the Rules, as per the KYC templates prepared for ‘Individuals’ \nand ‘Legal Entities’ (LEs), as the case may be. The templates may be revised from \ntime to time, as may be required and released by CERSAI. \n(5) The ‘live run’ of the CKYCR started from July 15, 2016, in a phased manner, \nbeginning with new ‘individual accounts’. Accordingly, Scheduled Commercial Banks \nshall invariably upload the KYC data pertaining to all new individual accounts opened \non or after January 1, 2017, with CKYCR. SCBs were initially allowed time up-to \nFebruary 1, 2017, for uploading data in respect of accounts opened during January \n2017. \nREs other than SCBs were required to start uploading the KYC data pertaining to all \nnew individual accounts opened on or after from April 1, 2017, with CKYCR in terms \nof the provisions of the Rules ibid. \n(6) The bank shall upload KYC records pertaining to accounts of LEs opened on or \nafter April 1, 2021, with CKYCR in terms of the provisions of the Rules ibid. The bank \nshall upload KYC records as per the LE Template released by CERSAI. \n(7) Once KYC Identifier is generated by CKYCR, the bank shall ensure that the same is \ncommunicated to the individual / LE as the case may be. \n(8) In order to ensure that all KYC records are incrementally uploaded on to CKYCR, \nthe bank shall upload / update the KYC data pertaining to accounts of individual \ncustomers and LEs opened prior to the above-mentioned dates as per clauses (5) and \n(6), respectively, at the time of periodic updation as specified in paragraph 42 of these \nDirections, or earlier, when the updated KYC information is obtained / received from \nthe customer. Also, whenever the bank obtains additional or updated information from \nany customer as per clause (10) below in this paragraph or Rule 9 (1C) of the PML \nRules, the bank shall within seven days or within such period as may be notified by the \nCentral Government, furnish the updated information to CKYCR, which shall update"} |
| {"text": "the KYC records of the existing customer in CKYCR. CKYCR shall thereafter \ninform electronically all the reporting entities who have dealt with the concerned \ncustomer regarding updation of KYC record of the said customer. Once CKYCR \ninforms the bank regarding an update in the KYC record of an existing customer, the \nbank shall retrieve the updated KYC records from CKYCR and update the KYC record \nmaintained by the bank. \n(9) The bank shall ensure that during periodic updation, the customers are migrated to \nthe current CDD standard. \n(10) For the purpose of establishing an account-based relationship, updation / periodic \nupdation or for verification of identity of a customer, the bank shall seek the KYC Identifier \nfrom the customer or retrieve the KYC Identifier, if available, from the CKYCR and \nproceed to obtain KYC records online by using such KYC Identifier and shall not \nrequire a customer to submit the same KYC records or information or any other \nadditional identification documents or details, unless– \n(i) \nthere is a change in the information of the customer as existing in the records \nof CKYCR; or \n(ii) \nthe KYC record or information retrieved is incomplete or is not as per the \ncurrent applicable KYC norms; or \n(iii) the validity period of downloaded documents has lapsed; or \n(iv) the bank considers it necessary in order to verify the identity or address \n(including current address) of the customer, or to perform enhanced due \ndiligence or to build an appropriate risk profile of the customer. \n[1Explanation: The RE that has last uploaded or updated the customer’s KYC records \nin the CKYCR shall be responsible for verifying the identity and / or address of the \ncustomer, as applicable. Accordingly, any bank downloading and relying on such \nrecords from the CKCYR shall not be required to re-verify the authenticity of the \ncustomer’s identity and / or address, provided the KYC records downloaded from \nCKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005. The \n \n1 Inserted with effect from December 29, 2025 vide Reserve Bank of India (Commercial Banks – Know Your \nCustomer) Amendment Directions, 2025 dated December 29, 2025"} |
| {"text": "bank downloading and relying on KYC records downloaded from the CKCYR shall \nremain responsible for all aspects of CDD procedure and provisions of these \nDirections, except verification of identity and / or address of the customer.] \n66. Reporting requirement under Foreign Account Tax Compliance Act (FATCA) \nand Common Reporting Standards (CRS): Under FATCA and CRS, the bank shall \nadhere to the provisions of Income Tax Rules 114F, 114G and 114H and determine \nwhether they are a Reporting Financial Institution as defined in Income Tax Rule 114F \nand if so, shall take following steps for complying with the reporting requirements: \n(1) Register on the related e-filing portal of Income Tax Department as Reporting \nFinancial Institutions at the link https://incometaxindiaefiling.gov.in/ post login --> My \nAccount --> Register as Reporting Financial Institution. \n(2) Submit online reports by using the digital signature of the ‘Designated Director’ by \neither uploading the Form 61B or ‘NIL’ report, for which, the schema prepared by \nCentral Board of Direct Taxes (CBDT) shall be referred to. \nExplanation: REs shall refer to the spot reference rates published by Foreign Exchange \nDealers’ \nAssociation \nof \nIndia \n(FEDAI) \non \ntheir \nwebsite \nat \nhttp://www.fedai.org.in/RevaluationRates.aspx for carrying out the due diligence \nprocedure for the purposes of identifying reportable accounts in terms of Rule 114H. \n(3) Develop Information Technology (IT) framework for carrying out due diligence \nprocedure and for recording and maintaining the same, as provided in Rule 114H. \n(4) Develop a system of audit for the IT framework and compliance with Rules 114F, \n114G and 114H of Income Tax Rules. \n(5) Constitute a ‘High-Level Monitoring Committee’ under the Designated Director or \nany other equivalent functionary to ensure compliance. \n(6) Ensure compliance with updated instructions / rules / guidance notes / Press \nreleases / issued on the subject by Central Board of Direct Taxes (CBDT) from time to \ntime \nand \navailable \non \nthe \nwebsite \nhttp://www.incometaxindia.gov.in/Pages/default.aspx. REs may take note of the \nfollowing: \n(i) \nupdated Guidance Note on FATCA and CRS \n(ii) \na press release on ‘Closure of Financial Accounts’ under Rule 114H (8)."} |
| {"text": "67. Period for presenting payment instruments: The bank shall not make payment \nof cheques / drafts / pay orders/ banker’s cheques, if the customer presents them \nbeyond the period of three months from the date of such instruments. \n68. Operation of Bank Accounts and Money Mules: The bank shall strictly adhere \nto the instructions on opening of accounts and monitoring of transactions, to minimise \nthe operations of ‘Money Mules’ that are used to launder the proceeds of fraud \nschemes (e.g., phishing and identity theft) by criminals who gain illegal access to \ndeposit accounts by recruiting third parties that act as ‘money mules’. The bank shall \nundertake diligence measures and meticulous monitoring to identify accounts which \nare operated as Money Mules and take appropriate action, including reporting of \nsuspicious transactions to FIU-IND. Further, if it is established that an account opened \nand operated is that of a Money Mule, but STR was not filed by the concerned bank, it \nshall then be deemed that the bank has not complied with these directions. \n69. Collection of Account Payee Cheques: The bank shall not collect account payee \ncheques for any person other than the payee constituent. The bank shall, at its option, \ncollect account payee cheques drawn for an amount not exceeding ₹50,000 to the \naccount of its customers who are co-operative credit societies, provided the payees of \nsuch cheques are the constituents of such co-operative credit societies. \n70. The bank shall allot Unique Customer Identification Code (UCIC) while entering \ninto new relationships with individual customers as also the existing individual \ncustomers. \n71. The bank shall, at their option, not issue UCIC to all walk-in / occasional customers \nprovided it is ensured that there is adequate mechanism to identify such walk-in \ncustomers who have frequent transactions with them and ensure that they are allotted \nUCIC. \n72. Introduction of New Technologies: The bank shall identify and assess the ML / \nTF risks that may arise in relation to the development of new products and new \nbusiness practices, including new delivery mechanisms, and the use of new or \ndeveloping technologies for both new and existing products. Further, the bank shall \nensure: \n(1) to undertake the ML / TF risk assessments prior to the launch or use of such \nproducts, practices, services, technologies; and"} |
| {"text": "(2) adoption of a risk-based approach to manage and mitigate the risks through \nappropriate EDD measures and transaction monitoring, etc. \n73. Correspondent Banking: The bank shall have a policy approved by its Boards, \nor by a committee headed by the Chairman / CEO / MD, to lay down parameters for \napproving cross-border correspondent banking and other similar relationships. In \naddition to performing normal CDD measures, such relationships shall be subject to \nthe following conditions: \n(1) The bank shall gather sufficient information about a respondent bank to understand \nfully the nature of the respondent bank’s business and to determine from publicly \navailable information the reputation of the respondent bank and the quality of \nsupervision, including whether it has been subjected to a ML / TF investigation or \nregulatory action. The bank shall assess the respondent bank’s AML / CFT controls. \n(2) The information gathered in relation to the nature of business of the respondent \nbank shall include information on management, major business activities, purpose of \nopening the account, identity of any third-party entities that will use the correspondent \nbanking services, regulatory / supervisory framework in the respondent bank’s home \ncountry among other relevant information. \n(3) The bank shall obtain the prior approval from senior management for establishing \nnew correspondent banking relationships. However, the bank shall also take post \nfacto-approval of the Board or the Committee empowered for this purpose. \n(4) The bank shall clearly document and understand the respective AML / CFT \nresponsibilities of institutions involved. \n(5) In the case of payable-through-accounts, the correspondent bank shall be satisfied \nthat the respondent bank has conducted CDD on the customers having direct access \nto the accounts of the correspondent bank and is undertaking ongoing 'due diligence' \non them. \n(6) The correspondent bank shall ensure that the respondent bank is able to provide \nthe relevant CDD information immediately on request. \n(7) The bank shall not enter into or continue a correspondent relationship with a shell \nbank. \n(8) The bank shall ensure that the respondent banks do not permit their accounts to"} |
| {"text": "be used by shell banks. \n(9) The bank shall be cautious of correspondent banking relationships with institutions \nlocated in jurisdictions which have strategic deficiencies or have not made sufficient \nprogress in implementation of FATF Recommendations. \n(10) The bank shall ensure that respondent banks have KYC / AML policies and \nprocedures in place and apply enhanced 'due diligence' procedures for transactions \ncarried out through the correspondent accounts. \n74. Wire Transfer \n(1) Information requirements for wire transfers for the purpose of this Direction: \n(i) All cross-border wire transfers shall be accompanied by accurate, complete, and \nmeaningful originator and beneficiary information as mentioned below: \n(a) name of the originator; \n(b) the originator account number where such an account is used to process the \ntransaction; \n(c) the originator’s address, or national identity number, or customer identification \nnumber, or date and place of birth; \n(d) name of the beneficiary; and \n(e) the beneficiary account number where such an account is used to process the \ntransaction. \nIn the absence of an account, a unique transaction reference number should be included \nwhich permits traceability of the transaction. \n(ii) In case of batch transfer, where several individual cross-border wire transfers from \na single originator are bundled in a batch file for transmission to beneficiaries, they \n(i.e., individual transfers) are exempted from the requirements of clause (i) above in \nrespect of originator information, provided that they include the originator’s account \nnumber or unique transaction reference number, as mentioned above, and the batch \nfile contains required and accurate originator information, and full beneficiary \ninformation, that is fully traceable within the beneficiary country. \n(iii) Domestic wire transfer, where the originator is an account holder of the ordering \nbank, shall be accompanied by originator and beneficiary information, as indicated for"} |
| {"text": "cross-border wire transfers in (i) and (ii) above. \n(iv) Domestic wire transfers of ₹50,000 and above, where the originator is not an \naccount holder of the ordering bank, shall also be accompanied by originator and \nbeneficiary information as indicated for cross-border wire transfers. \nProvided that In case of domestic wire transfers below ₹50,000 where the originator is \nnot an account holder of the ordering banks and where the information accompanying \nthe wire transfer can be made available to the beneficiary RE and appropriate \nauthorities by other means, it is sufficient for the ordering bank to include a unique \ntransaction reference number, provided that this number or identifier will permit the \ntransaction to be traced back to the originator or the beneficiary. \nProvided further that the ordering bank shall make the information available within \nthree working / business days of receiving the request from the intermediary RE, \nbeneficiary RE, or from appropriate competent authorities. \n(v) The bank shall ensure that all the information on the wire transfers shall be \nimmediately made available to appropriate law enforcement authorities, prosecuting / \ncompetent authorities as well as FIU-IND on receiving such requests with appropriate \nlevel provisions. \n(vi) The wire transfer instructions are not intended to cover the following types of \npayments: \n(a) Any transfer that flows from a transaction carried out using a credit card / debit card \n/ Prepaid Payment Instrument (PPI), including through a token or any other similar \nreference string associated with the card / PPI, for the purchase of goods or services, \nso long as the credit or debit card number or PPI id or reference number accompanies \nall transfers flowing from the transaction. However, when a credit or debit card or PPI is \nused as a payment system to effect a person-to-person wire transfer, the wire transfer \ninstructions shall apply to such transactions and the necessary information should be \nincluded in the message. \n(b) Financial institution-to-financial institution transfers and settlements, where both the \noriginator person and the beneficiary person are regulated financial institutions acting \non their own behalf. \nIt is, however, clarified that nothing within these instructions will impact the obligation"} |
| {"text": "of the bank to comply with applicable reporting requirements under PML Act, 2002, \nand the Rules made thereunder, or any other statutory requirement in force. \n(2) Responsibilities of ordering bank, intermediary bank and beneficiary bank, effecting \nwire transfer, are as under: \n(i) Ordering bank: \n(a) The ordering bank shall ensure that all cross-border and qualifying domestic wire \ntransfers {viz., transactions as per sub-clauses (iii) and (iv) of clause (1) above}, contain \nrequired and accurate originator information and required beneficiary information, as \nindicated above. \n(b) Customer Identification shall be made if a customer, who is not an account holder \nof the ordering bank, is intentionally structuring domestic wire transfers below ₹50,000 \nto avoid reporting or monitoring. In case of non-cooperation from the customer, efforts \nshall be made to establish identity and if the same transaction is found to be suspicious, \nSTR may be filed with FIU-IND in accordance with the PML Rules. \n(c) Ordering bank shall not execute the wire transfer if it is not able to comply with the \nrequirements stipulated in this paragraph. \n(ii) Intermediary bank: \n(a) The bank processing an intermediary element of a chain of wire transfers shall \nensure that all originator and beneficiary information accompanying a wire transfer is \nretained with the transfer. \n(b) Where technical limitations prevent the required originator or beneficiary \ninformation accompanying a cross-border wire transfer from remaining with a related \ndomestic wire transfer, the intermediary bank shall keep a record, for at least five years, \nof all the information received from the ordering financial institution or another \nintermediary bank. \n(c) Intermediary bank shall take reasonable measures to identify cross- border wire \ntransfers that lack required originator information or required beneficiary information. \nSuch measures should be consistent with straight-through processing. \n(d) Intermediary bank shall have effective risk-based policies and procedures for \ndetermining:"} |
| {"text": "a. when to execute, reject, or suspend a wire transfer lacking required originator or \nrequired beneficiary information; and \nb. the appropriate follow-up action including seeking further information and if the \ntransaction is found to be suspicious, reporting to FIU-IND in accordance with the PML \nRules. \n(iii) Beneficiary bank: \n(a) Beneficiary bank shall take reasonable measures, including post-event monitoring \nor real-time monitoring where feasible, to identify cross- border wire transfers and \nqualifying domestic wire transfers {viz., transactions as per sub-clauses (iii) and (iv) of \nclause (1) above}, that lack required originator information or required beneficiary \ninformation. \n(b) Beneficiary bank shall have effective risk-based policies and procedures for \ndetermining: (a) when to execute, reject, or suspend a wire transfer lacking required \noriginator or required beneficiary information; and (b) the appropriate follow-up action \nfollow-up action including seeking further information and if the transaction is found to \nbe suspicious, reporting to FIU-IND in accordance with the PML Rules. \n(iv) Money Transfer Service Scheme (MTSS) providers and other banks, shall comply \nwith all of the relevant requirements of this paragraph, whether they are providing \nservices directly or through their agents. The bank that control both the ordering and the \nbeneficiary side of a wire transfer shall: \n(a) take into account all the information from both the ordering and beneficiary sides in \norder to determine whether an STR has to be filed; and \n(b) file an STR with FIU, in accordance with the PML Rules, if a transaction is found to \nbe suspicious. \n(3) Other Obligations: \n(i) Obligations in respect of the bank’s engagement or involvement with unregulated \nentities in the process of wire transfer: The bank shall be cognizant of their obligations \nunder these instructions and ensure strict compliance, in respect of engagement or \ninvolvement of any unregulated entities in the process of wire transfer. More \nspecifically, whenever there is involvement of any unregulated entities in the process \nof wire transfers, the concerned bank shall be fully responsible for information,"} |
| {"text": "reporting and other requirements and therefore shall ensure, inter alia, that: \n(a) there is unhindered flow of complete wire transfer information, as mandated under \nthese directions, from and through the unregulated entities involved; \n(b) the agreement / arrangement, if any, with such unregulated entities by the bank \nclearly stipulates the obligations under wire transfer instructions; and \n(c) a termination clause is available in their agreement / arrangement, if any, with such \nentities so that in case the unregulated entities are unable to support the wire \ninformation requirements, the agreement / arrangement can be terminated. Existing \nagreements / arrangements, if any, with such entities shall be reviewed within three \nmonths to ensure aforementioned requirements. \n(ii) The bank’s responsibility while undertaking cross-border wire transfer with respect \nto name screening (such that they do not process cross-border transactions of \ndesignated persons and entities): The bank is prohibited from conducting transactions \nwith designated persons and entities and accordingly, in addition to compliance with \nChapter IX of the Directions, the bank shall ensure that they do not process cross-\nborder transactions of designated persons and entities. \n(iii) The bank’s responsibility to fulfil record management requirements: Complete \noriginator and beneficiary information relating to wire transfers shall be preserved by \nthe bank involved in the wire transfer, in accordance with paragraph 50 of these \nDirections. \n75. Issue and Payment of Demand Drafts, etc.: \n(1) Any remittance of funds by way of demand draft, mail / telegraphic transfer / NEFT \n/ IMPS or any other mode and issue of travellers’ cheques for value of ₹50,000 and \nabove shall be effected by debit to the customer’s account or against cheques and not \nagainst cash payment. \n(2) Further, the bank shall incorporate the name of the purchaser on the face of the \ndemand draft, pay order, banker’s cheque, etc., by the issuing bank. These instructions \nshall take effect for such instruments issued on or after September 15, 2018. \n76. Quoting of PAN: PAN or equivalent e-document thereof of customers shall be \nobtained and verified while undertaking transactions as per the provisions of Income \nTax Rule 114B applicable to banks, as amended from time to time, which includes"} |
| {"text": "opening of accounts with banks, etc. Form 60 shall be obtained from persons who do \nnot have PAN or equivalent e-document thereof. \n77. Selling Third party products: The bank acting as agent while selling third party \nproducts as per regulations in force from time to time shall comply with the following \naspects for the purpose of these directions: \n(1) the identity and address of the walk-in customer shall be verified for transactions \nabove ₹50,000 as required under clause (5) of paragraph 21 of these Directions. \n(2) transaction details of sale of third-party products and related records shall be \nmaintained as prescribed in paragraph 50 of Chapter VII. \n(3) AML software capable of capturing, generating and analysing alerts for the purpose \nof filing CTR / STR in respect of transactions relating to third party products with \ncustomers including walk-in customers shall be available. \n(4) transactions involving ₹50,000 and above shall be undertaken only by: \n(i) debit to customers’ account or against cheques; and \n(ii) obtaining and verifying the PAN given by the account-based as well as walk-in \ncustomers. \n(5) Instruction at (4) above shall also apply to sale of the bank’s own products, payment \nof dues of credit cards / sale and reloading of prepaid / travel cards and any other \nproduct for ₹50,000 and above. \n78. At-par cheque facility availed by co-operative banks \n(1) The ‘at par’ cheque facility offered by the bank to co-operative banks shall be \nmonitored and such arrangements be reviewed to assess the risks including credit risk \nand reputational risk arising therefrom. \n(2) The right to verify the records maintained by the customer cooperative banks / \nsocieties for compliance with the extant instructions on KYC and AML under such \narrangements shall be retained by bank. \n79. Hiring of Employees and Employee training: \n(1) The bank shall put in place an adequate screening mechanism, including Know \nYour Employee / Staff policy, as an integral part of its personnel recruitment / hiring \nprocess."} |
| {"text": "(2) The bank shall endeavour to ensure that the staff dealing with / being deployed for \nKYC / AML / CFT matters have: high integrity and ethical standards, good \nunderstanding of extant KYC / AML / CFT standards, effective communication skills \nand ability to keep up with the changing KYC / AML / CFT landscape, nationally and \ninternationally. The bank shall also strive to develop an environment which fosters \nopen communication and high integrity amongst the staff. \n(3) The bank shall put in place an on-going employee training programme so that the \nmembers of staff are adequately trained in KYC / AML / CFT policy. The focus of the \ntraining shall be different for frontline staff, compliance staff and staff dealing with new \ncustomers. The bank shall specially train the front desk staff to handle issues arising \nfrom lack of customer education. The bank shall ensure the proper staffing of the audit \nfunction with persons adequately trained and well-versed in KYC / AML / CFT policies \nof the bank, regulation and related issues."} |
| {"text": "Chapter XI – Repeal and Other Provisions \nA. Repeal and saving \n80. With the issue of these Directions, the existing Directions, instructions, and \nguidelines relating to Know Your Customer as applicable to Commercial Banks stand \nrepealed, as communicated vide circular DOR.RRC.REC.302/33-01-010/2025-26 dated \nNovember 28, 2025. The Directions, instructions, and guidelines repealed prior to the \nissuance of these Directions shall continue to remain repealed. \n81. Notwithstanding such repeal, any action taken or purported to have been taken, or \ninitiated under the repealed Directions, instructions, or guidelines shall continue to be \ngoverned by the provisions thereof. All approvals or acknowledgments granted under \nthese repealed lists shall be deemed as governed by these Directions. Further, the \nrepeal of these directions, instructions, or guidelines shall not in any way prejudicially \naffect: \n(1) any right, obligation or liability acquired, accrued, or incurred thereunder; \n(2) any penalty, forfeiture, or punishment incurred in respect of any contravention \ncommitted thereunder; \n(3) any investigation, legal proceeding, or remedy in respect of any such right, \nprivilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any \nsuch investigation, legal proceedings or remedy may be instituted, continued, or \nenforced and any such penalty, forfeiture or punishment may be imposed as if those \ndirections, instructions, or guidelines had not been repealed. \nB. Application of other laws not barred \n82. The provisions of these Directions shall be in addition to, and not in derogation of \nthe provisions of any other laws, rules, regulations, or directions, for the time being in \nforce. \nC. Interpretation \n83. For the purpose of giving effect to the provisions of these Directions or in order to \nremove any difficulties in the application or interpretation of the provisions of these \nDirections, the RBI may, if it considers necessary, issue necessary clarifications in \nrespect of any matter covered herein and the interpretation of any provision of these"} |
| {"text": "Directions given by the RBI shall be final and binding. \n \nVeena Srivastava \n(Chief General Manager)"} |
| {"text": "Annex – I \nFile No. 14014/01/2019/CFT \nGovernment of India \nMinistry of Home Affairs \nCTCR Division \nNorth Block, New Delhi. \nDated: the 2nd February, 2021 \n(Amended vide corrigendum dated March 15, 2023) \n(Amended vide corrigendum dated August 29, 2023) \n(Amended vide corrigendum dated April 22, 2024) \nORDER \nSubject: - Procedure for implementation of Section 51A of the Unlawful Activities \n(Prevention) Act, 1967. \nSection 51A of the Unlawful Activities (Prevention) Act, 1967 (UAPA) reads as under:- \n\"51A. For the prevention of, and for coping with terrorist activities, the Central \nGovernment shall have power to — \na) freeze, seize or attach funds and other financial assets or economic resources held \nby, on behalf of or at the direction of the individuals or entities listed in the Schedule to \nthe Order, or any other person engaged in or suspected to be engaged in terrorism; \nb) prohibit any individual or entity from making any funds, financial assets or economic \nresources or related services available for the benefit of the individuals or entities listed \nin the Schedule to the Order or any other person engaged in or suspected to be \nengaged in terrorism; \nc) prevent the entry into or the transit through India of individuals listed in the Schedule \nto the Order or any other person engaged in or suspected to be engaged in terrorism\". \nThe Unlawful Activities (Prevention) Act, 1967 defines \"Order\" as under: - \n\"Order\" means the Prevention and Suppression of Terrorism (Implementation of \nSecurity Council Resolutions) Order, 2007, as may be amended from time to time. \n2. In order to ensure expeditious and effective implementation of the provisions of \nSection 51A, a revised procedure is outlined below in supersession of earlier orders"} |
| {"text": "and guidelines on the subject: \n3. Appointment and communication details of the UAPA Nodal Officers: \n3.1 The Joint Secretary (CTCR), Ministry of Home Affairs would be the Central \n[designated] Nodal Officer for the UAPA [Telephone Number: 011-24010033, 011-\n24010034, 011-230923465 (Fax), email address: jsctcr-mha@gov.in]. \n3.2 The Ministry of External Affairs, Department of Economic Affairs, Ministry of \nCorporate Affairs, Foreigners Division of MHA, FIU-IND, Central Board of Indirect \nTaxes and Customs (CBIC) and Financial Regulators (RBI, SEBI and IRDA) shall \nappoint a UAPA Nodal Officer and communicate the name and contact details to the \nCentral [designated] Nodal Officer for the UAPA. \n3.4 All the States and UTs shall appoint a UAPA Nodal Officer preferably of the rank \nof the Principal Secretary/Secretary, Home Department and communicate the name \nand contact details to the Central [designated] Nodal Officer for the UAPA. \n3.5 The Central [designated] Nodal Officer for the UAPA shall maintain the \nconsolidated list of all UAPA Nodal Officers and forward the list to all other UAPA Nodal \nOfficers, in July every year or as and when the list is updated and shall cause the \namended list of UAPA Nodal Officers circulated to all the Nodal Officers. \n3.6 The Financial Regulators shall forward the consolidated list of UAPA Nodal Officers \nto the banks, stock exchanges/depositories, intermediaries regulated by SEBI and \ninsurance companies. \n3.7 The Regulators of the real estate agents, dealers in precious metals & stones \n(DPMS) and DNFBPs shall forward the consolidated list of UAPA Nodal Officers to the \nreal estate agents, dealers in precious metals & stones (DPMS) and DNFBPs. \n4. Communication of the list of designated individuals/entities: \n4.1 The Ministry of External Affairs shall update the list of individuals and entities \nsubject to the UN sanction measures whenever changes are made in the lists by the \nUNSC 1267 Committee pertaining to Al Qaida and Da’esh and the UNSC 1988 \nCommittee pertaining to Taliban. On such revisions, the Ministry of External Affairs \nwould electronically forward the changes without delay to the designated Nodal \nOfficers in the Ministry of Corporate Affairs, CBIC, Financial Regulators, FIU–IND, \nCTCR Division and Foreigners Division in MHA."} |
| {"text": "4.2 The Financial Regulators shall forward the list of designated persons as mentioned \nin Para 4(i) above, without delay to the banks, stock exchanges/ depositories, \nintermediaries regulated by SEBI and insurance companies. \n4.3 The Central [designated] Nodal Officer for the UAPA shall forward the designated \nlist as mentioned in Para 4(i) above, to all the UAPA Nodal Officers of States/UTs \nwithout delay. \n4.4 The UAPA Nodal Officer in Foreigners Division of MHA shall forward the \ndesignated list as mentioned in Para 4(i) above, to the immigration authorities and \nsecurity agencies without delay. \n4.5 The Regulators of the real estate agents, dealers in precious metals & stones \n(DPMS) and DNFBPs shall forward the list of designated persons as mentioned in Para \n4(i) above, to the real estate agents, dealers in precious metals & stones (DPMS) and \nDNFBPs without delay. \n5. Regarding funds, financial assets or economic resources or related services \nheld in the form of bank accounts, stocks or Insurance policies etc. \n5.1 The Financial Regulators will issue necessary guidelines to banks, stock \nexchanges/depositories, intermediaries regulated by the SEBI and insurance \ncompanies requiring them - \n(i) To maintain updated designated lists in electronic form and run a check on the given \nparameters on a daily basis to verify whether individuals or entities listed in the \nSchedule to the Order, hereinafter, referred to as designated individuals/entities are \nholding any funds, financial assets or economic resources or related services held in \nthe form of bank accounts, stocks, Insurance policies etc., with them. \n(ii) In case, the particulars of any of their customers match with the particulars of \ndesignated \nindividuals/entities, \nthe \nbanks, \nstock \nexchanges/depositories, \nintermediaries regulated by SEBI, insurance companies shall immediately inform full \nparticulars of the funds, financial assets or economic resources or related services held \nin the form of bank accounts, stocks or Insurance policies etc., held by such customer \non their books to the Central [designated] Nodal Officer for the UAPA, at Fax No.011-\n23092551 and also convey over telephone No. 011-23092548. The particulars apart \nfrom being sent by post shall necessarily be conveyed on email id: jsctcr-mha@gov.in."} |
| {"text": "(iii) The banks, stock exchanges/depositories, intermediaries regulated by SEBI and \ninsurance companies shall also send a copy of the communication mentioned in 5.1 \n(ii) above to the UAPA Nodal Officer of the State/UT where the account is held and to \nRegulators and FIU-IND, as the case may be, without delay. \n(iv) In case, the match of any of the customers with the particulars of designated \nindividuals/entities is beyond doubt, the banks, stock exchanges/depositories, \nintermediaries regulated by SEBI and insurance companies shall prevent such \ndesignated persons from conducting financial transactions, under intimation to the \nCentral [designated] Nodal Officer for the UAPA at Fax No.011-23092551 and also \nconvey over telephone No.011-23092548. The particulars apart from being sent by \npost should necessarily be conveyed on e-mail id: jsctcr-mha@gov.in, without delay. \n(v) The banks, stock exchanges/depositories, intermediaries regulated by SEBI, and \ninsurance companies shall file a Suspicious Transaction Report (STR) with FIU-IND \ncovering all transactions in the accounts, covered under Paragraph 5.1(ii) above, \ncarried through or attempted as per the prescribed format. \n5.2 On receipt of the particulars, as referred to in Paragraph 5 (i) above, the Central \n[designated] Nodal Officer for the UAPA would cause a verification to be conducted by \nthe State Police and/or the Central Agencies so as to ensure that the \nindividuals/entities identified by the banks, stock exchanges/ depositories, \nintermediaries and insurance companies are the ones listed as designated \nindividuals/entities and the funds, financial assets or economic resources or related \nservices, reported by banks, stock exchanges/depositories, intermediaries regulated \nby SEBI and insurance companies are held by the designated individuals/entities. This \nverification would be completed expeditiously from the date of receipt of such \nparticulars. \n5.3 In case, the results of the verification indicate that the properties are \nowned by or are held for the benefit of the designated individuals/entities, an orders to \nfreeze these assets under Section 51A of the UAPA would be issued by the Central \n[designated] nodal officer for the UAPA without delay and conveyed electronically to \nthe concerned bank branch, depository and insurance company under intimation to \nrespective Regulators and FIU-IND. The Central [designated] nodal officer for the \nUAPA shall also forward a copy thereof to all the Principal Secretaries/Secretaries,"} |
| {"text": "Home Department of the States/UTs and all UAPA nodal officers in the country, so \nthat any individual or entity may be prohibited from making any funds, financial assets \nor economic resources or related services available for the benefit of the designated \nindividuals/ entities or any other person engaged in or suspected to be engaged in \nterrorism. The Central [designated] Nodal Officer for the UAPA shall also forward a \ncopy of the order to all Directors General of Police/ Commissioners of Police of all \nStates/UTs for initiating action under the provisions of the Unlawful Activities \n(Prevention) Act, 1967. \n The order shall be issued without prior notice to the designated individual/entity. \n6. Regarding financial assets or economic resources of the nature of immovable \nproperties: \n6.1 The Central [designated] Nodal Officer for the UAPA shall electronically forward \nthe designated list to the UAPA Nodal Officers of all States and UTs with request to \nhave the names of the designated individuals/entities, on the given parameters, \nverified from the records of the office of the Registrar performing the work of \nregistration of immovable properties in their respective jurisdiction, without delay. \n6.2 In case, the designated individuals/entities are holding financial assets or \neconomic resources of the nature of immovable property and if any match with the \ndesignated individuals/entities is found, the UAPA Nodal Officer of the State/UT would \ncause communication of the complete particulars of such individual/entity along with \ncomplete details of the financial assets or economic resources of the nature of \nimmovable property to the Central [designated] Nodal Officer for the UAPA without \ndelay at Fax No. 011-23092551 and also convey over telephone No. 011-23092548. \nThe particulars apart from being sent by post would necessarily be conveyed on email \nid: jsctcr-mha@gov.in. \n6.3 The UAPA Nodal Officer of the State/UT may cause such inquiry to be conducted \nby the State Police so as to ensure that the particulars sent by the Registrar performing \nthe work of registering immovable properties are indeed of these designated \nindividuals/entities. This verification shall be completed without delay and shall be \nconveyed within 24 hours of the verification, if it matches with the particulars of the \ndesignated individual/entity to the Central [designated] Nodal Officer for the UAPA at \nthe given Fax, telephone numbers and also on the email id."} |
| {"text": "6.4 The Central [designated] Nodal Officer for the UAPA may also have the verification \nconducted by the Central Agencies. This verification would be completed \nexpeditiously. \n6.5 In case, the results of the verification indicates that the particulars match \nwith those of designated individuals/entities, an order under Section 51A of the UAPA \nshall be issued by the Central [designated] Nodal Officer for the UAPA without delay \nand conveyed to the concerned Registrar performing the work of registering \nimmovable properties and to FIU-IND under intimation to the concerned UAPA Nodal \nOfficer of the State/UT. \nThe order shall be issued without prior notice to the designated individual/entity. \n6.6 Further, the UAPA Nodal Officer of the State/UT shall cause to monitor the \ntransactions/ accounts of the designated individual/entity so as to prohibit any \nindividual or entity from making any funds, financial assets or economic resources or \nrelated services available for the benefit of the individuals or entities listed in the \nSchedule to the Order or any other person engaged in or suspected to be engaged in \nterrorism. The UAPA Nodal Officer of the State/UT shall, upon becoming aware of any \ntransactions and attempts by third party immediately bring to the notice of the \nDGP/Commissioner of Police of the State/UT for initiating action under the provisions \nof the Unlawful Activities (Prevention) Act, 1967. \n7. Regarding the real-estate agents, dealers of precious metals/stones (DPMS) \nand other Designated Non-Financial Businesses and Professions (DNFBPs) and \nany other person: \n(i) The Designated Non-Financial Businesses and Professions (DNFBPs), inter alia, \ninclude casinos, real estate agents, dealers in precious metals/stones (DPMS), \nlawyers/notaries, accountants, company service providers and societies/ firms and \nnon-profit organizations. The list of designated entities/individuals should be circulated \nto all DNFBPs by the concerned Regulators without delay. \n(a) The DNFBPs are required to ensure that if any designated individual/entity \napproaches them for a transaction or relationship or attempts to undertake such \ntransactions, the dealer should not carry out such transactions and, without delay, \ninform the UAPA Nodal officer of the State/UT with details of the funds/assets held and \nthe details of the transaction, who in turn would follow the same procedure as in para"} |
| {"text": "6.2 to 6.6 above. Further, if the dealers hold any assets or funds of the designated \nindividual/entity, either directly or indirectly, they shall freeze the same without delay \nand inform the UAPA Nodal officer of the State/UT. \n(ii) The CBIC shall advise the dealers of precious metals/stones (DPMS) that if any \ndesignated individual/entity approaches them for sale/purchase of precious \nmetals/stones or attempts to undertake such transactions the dealer should not carry \nout such transaction and without delay inform the CBIC, who in turn follow the similar \nprocedure as laid down in the paragraphs 6.2 to 6.5 above. \n(iii) The UAPA Nodal Officer of the State/UT shall advise the Registrar of Societies/ \nFirms/ non-profit organizations that if any designated individual/ entity is a shareholder/ \nmember/ partner/ director/ settler/ trustee/ beneficiary/ beneficial owner of any society/ \npartnership firm/ trust/ non-profit organization, then the Registrar should inform the \nUAPA Nodal Officer of the State/UT without delay, who will, in turn, follow the \nprocedure as laid down in the paragraphs 6.2 to 6.5 above. The Registrar should also \nbe advised that no societies/ firms/ non-profit organizations should be allowed to be \nregistered, if any of the designated individual/ entity is a director/ partner/ office bearer/ \ntrustee/ settler/ beneficiary or beneficial owner of such juridical person and in case \nsuch request is received, then the Registrar shall inform the UAPA Nodal Officer of the \nconcerned State/UT without delay, who will, in turn, follow the procedure laid down in \nthe paragraphs 6.2 to 6.5 above. \n(iv) The UAPA Nodal Officer of the State/UT shall also advise appropriate department \nof the State/UT, administering the operations relating to Casinos, to ensure that the \ndesignated individuals/ entities should not be allowed to own or have beneficial \nownership in any Casino operation. Further, if any designated individual/ entity visits \nor participates in any game in the Casino and/ or if any assets of such designated \nindividual/ entity is with the Casino operator, and of the particulars of any client \nmatches with the particulars of designated individuals/ entities, the Casino owner shall \ninform the UAPA Nodal Officer of the State/UT without delay, who shall in turn follow \nthe procedure laid down in paragraph 6.2 to 6.5 above. \n(v) The Ministry of Corporate Affairs shall issue an appropriate order to the Institute of \nChartered Accountants of India, Institute of Cost and Works Accountants of India and \nInstitute of Company Secretaries of India (ICSI) requesting them to sensitize their"} |
| {"text": "respective members to the provisions of Section 51A of UAPA, so that if any \ndesignated individual/entity approaches them, for entering/ investing in the financial \nsector and/or immovable property, or they are holding or managing any assets/ \nresources of Designated individual/ entities, then the member shall convey the \ncomplete details of such designated individual/ entity to UAPA Nodal Officer in the \nMinistry of Corporate Affairs who shall in turn follow the similar procedure as laid down \nin paragraph 6.2 to 6.5 above. \n(vi) The members of these institutes should also be sensitized that if they have \narranged for or have been approached for incorporation/ formation/ registration of any \ncompany, limited liability firm, partnership firm, society, trust, association where any of \ndesignated individual/ entity is a director/ shareholder/ member of a company/ society/ \nassociation or partner in a firm or settler/ trustee or beneficiary of a trust or a beneficial \nowner of a juridical person, then the member of the institute should not incorporate/ \nform/ register such juridical person and should convey the complete details of such \ndesignated individual/ entity to UAPA Nodal Officer in the Ministry of Corporate Affairs \nwho shall in turn follow the similar procedure as laid down in paragraph 6.2 to 6.5 \nabove. \n(vii) In addition, the member of the ICSI be sensitized that if he/she is Company \nSecretary or is holding any managerial position where any of designated individual/ \nentity is a Director and/or Shareholder or having beneficial ownership of any such \njuridical person then the member should convey the complete details of such \ndesignated individual/ entity to UAPA Nodal Officer in the Ministry of Corporate Affairs \nwho shall in turn follow the similar procedure as laid down in paragraph 6.2 to 6.5 \nabove. \n(viii) The Registrar of Companies (ROC) may be advised that in case any designated \nindividual/ entity is a shareholder/ director/ whole time director in any company \nregistered with ROC or beneficial owner of such company, then the ROC should \nconvey the complete details of such designated individual/ entity, as per the procedure \nmentioned in paragraph 8 to 10 above. This procedure shall also be followed in case \nof any designated individual/ entity being a partner of Limited Liabilities Partnership \nFirms registered with ROC or beneficial owner of such firms. Further the ROC may be \nadvised that no company or limited liability Partnership firm shall be allowed to be \nregistered if any of the designated individual/ entity is the Director/ Promoter/ Partner"} |
| {"text": "or beneficial owner of such company or firm and in case such a request received the \nROC should inform the UAPA Nodal Officer in the Ministry of Corporate Affairs who in \nturn shall follow the similar procedure as laid down in paragraph 6.2 to 6.5 above. \n(ix) Any person, either directly or indirectly, holding any funds or other assets of \ndesignated individuals or entities, shall, without delay and without prior notice, cause \nto freeze any transaction in relation to such funds or assets, by immediately informing \nthe nearest Police Station, which shall, in turn, inform the concerned UAPA Nodal \nOfficer of the State/UT along with the details of the funds/assets held. The concerned \nUAPA Nodal Officer of the State/UT, would follow the same procedure as in para 6.2 \nto 6.6 above. \n8. Regarding implementation of requests received from foreign countries under \nU.N. Security Council Resolution 1373 of 2001: \n8.1 The U.N. Security Council Resolution No.1373 of 2001 obligates countries to freeze \nwithout delay the funds or other assets of persons who commit, or attempt to commit, \nterrorist acts or participate in or facilitate the commission of terrorist acts; of entities \nowned or controlled directly or indirectly by such persons; and of persons and entities \nacting on behalf of, or at the direction of such persons and entities, including funds or \nother assets derived or generated from property owned or controlled, directly or \nindirectly, by such persons and associated persons and entities. Each individual \ncountry has the authority to designate the persons and entities that should have their \nfunds or other assets frozen. Additionally, to ensure that effective cooperation is \ndeveloped among countries, countries should examine and give effect to, if \nappropriate, the actions initiated under the freezing mechanisms of other countries. \n8.2 To give effect to the requests of foreign countries under the U.N. Security \nCouncil Resolution 1373, the Ministry of External Affairs shall examine the requests \nmade by the foreign countries and forward it electronically, with their comments, to the \nCentral [designated] Nodal Officer for the UAPA for freezing of funds or other assets. \n8.3 The Central [designated] Nodal Officer for the UAPA shall cause the request to be \nexamined without delay, so as to satisfy itself that on the basis of applicable legal \nprinciples, the requested designation is supported by reasonable grounds, or a \nreasonable basis, to suspect or believe that the proposed designee is a terrorist, one \nwho finances terrorism or a terrorist organization, and upon his satisfaction, request"} |
| {"text": "would be electronically forwarded to the Nodal Officers in Regulators, FIU-IND and to \nthe Nodal Officers of the States/UTs. The proposed designee, as mentioned above \nwould be treated as designated individuals/entities. \n9. Upon receipt of the requests by these Nodal Officers from the Central [designated] \nNodal Officer for the UAPA, the similar procedure as enumerated at paragraphs 5 and \n6 above shall be followed. \nThe freezing orders shall be issued without prior notice to the designated persons \ninvolved. \n10. Regarding exemption, to be granted to the above orders in accordance with \nUNSCR 1452. \n10.1 \nThe \nabove \nprovisions \nshall \nnot \napply \nto \nfunds \nand \nother financial assets or economic resources that have been determined by the Central \n[designated] nodal officer of the UAPA to be:- \n(a) necessary for basic expenses, including payments for foodstuff, rent or \nmortgage, medicines and medical treatment, taxes, insurance premiums and public \nutility charges, or exclusively for payment of reasonable professional fees and \nreimbursement of incurred expenses associated with the provision of legal services or \nfees or service charges for routine holding or maintenance of frozen funds or other \nfinancial assets or economic resources, after notification by the MEA of the intention \nto authorize, where appropriate, access to such funds, assets or resources and in the \nabsence of a negative decision within 48 hours of such notification; \n(b) necessary for extraordinary expenses, provided that such determination \nhas been notified by the MEA; \n10.2. The addition may be allowed to accounts of the designated individuals/ entities \nsubject to the provisions of paragraph 10 of: \n(a) interest or other earnings due on those accounts, or \n(b) payments due under contracts, agreements or obligations that arose prior \nto the date on which those accounts became subject to the provisions of resolutions \n1267 (1999), 1333 (2000), or 1390 (2002), \nProvided that any such interest, other earnings and payments continue to be subject \nto those provisions;"} |
| {"text": "10.3 (a): The designated individual or organization may submit a request to the Central \n[Designated] Nodal Officer for UAPA under the provisions of Para 10.1 above. The \nCentral [Designated] Nodal Officer for UAPA may be approached by post at “Joint \nSecretary (CTCR), North Block, New Delhi – 110001” or through email to jsctcr-\nmha@gov.in” \n(b): The Central [Designated] Nodal Officer for UAPA shall examine such requests, in \nconsultation with the Law Enforcement Agencies and other Security Agencies and \nIntelligence Agencies and, if accepted, communicate the same, if applicable, to the \nMinistry of External Affairs, Government of India for notifying the committee \nestablished pursuant to UNSC Resolution 1267 (1999) of the intention to authorize, \naccess to such funds, assets or resources in terms of Para 10.1 above. \n11. Regarding procedure for unfreezing of funds, financial assets or economic \nresources or related services of individuals/entities inadvertently affected by the \nfreezing mechanism upon verification that the person or entity is not a \ndesignated person: \n11.1 Any individual or entity, if it has evidence to prove that the freezing of \nfunds, financial assets or economic resources or related services, owned/held by them \nhas been inadvertently frozen, they shall move an application giving the requisite \nevidence, in writing, to the concerned bank, stock exchanges/ depositories, \nintermediaries regulated by SEBI, insurance companies, Registrar of Immovable \nProperties, ROC, Regulators of DNFBPs and the UAPA Nodal Officers of State/UT. \n11.2 The banks, stock exchanges/depositories, intermediaries regulated by \nSEBI, insurance companies, Registrar of Immovable Properties, ROC, Regulators of \nDNFBPs and the State/ UT Nodal Officers shall inform and forward a copy of the \napplication together with full details of the asset frozen given by any individual or entity \ninforming of the funds, financial assets or economic resources or related services have \nbeen frozen inadvertently, to the Central [designated] Nodal Officer for the UAPA as \nper the contact details given in Paragraph 3.1 above, within two working days. \n11.3 The Central [designated] Nodal Officer for the UAPA shall cause such verification, \nas may be required on the basis of the evidence furnished by the individual/entity, and, \nif satisfied, he/she shall pass an order, without delay, unfreezing the funds, financial \nassets or economic resources or related services, owned/held by such applicant, under"} |
| {"text": "intimation to the concerned bank, stock exchanges/depositories, intermediaries \nregulated by SEBI, insurance company, Registrar of Immovable Properties, ROC, \nRegulators of DNFBPs and the UAPA Nodal Officer of State/UT. However, if it is not \npossible for any reason to pass an Order unfreezing the assets within 5 working days, \nthe Central [designated] Nodal Officer for the UAPA shall inform the applicant \nexpeditiously. \n11A. Regarding procedure for unfreezing of funds, financial assets or economic \nresources or related services of individuals/organisations in the event of \ndelisting by the UNSCR 1267 (1999), 1988 (2011) and 1989 (2011) Committee \nUpon making an application in writing by the concerned individual/organisation, to the \nconcerned bank, stock exchanges/depositories, intermediaries regulated by SEBI, \ninsurance companies, Registrar of Immovable Properties, RoC, Regulators of \nDNFBPs, Department of Posts and the UAPA Nodal Officers of all States/UTs., who in \nturn shall forward the application along with the full details of the assets frozen to the \nCentral [Designated] Nodal Officer for UAPA within two working days. The Central \n[Designated] Nodal Officer for UAPA shall examine the request in consultation with the \nLaw Enforcement Agencies and other Security Agencies and Intelligence Agencies \nand cause such verification as may be required and if satisfied, shall pass an order, \nwithout delay, unfreezing the funds, financial assets or economic resources or related \nservices owned or held by the applicant under intimation to concerned bank, stock \nexchanges/ depositories, intermediaries regulated by SEBI, insurance companies, \nRegistrar of Immovable Properties, RoC, Regulators of DNFBPs, Department of Posts \nand the UAPA Nodal Officers of all States/UTs. \n12. Regarding prevention of entry into or transit through India: \n12.1 As regards prevention of entry into or transit through India of the designated \nindividuals, the UAPA Nodal Officer in the Foreigners Division of MHA, shall forward \nthe designated lists to the immigration authorities and security agencies with a request \nto prevent the entry into or the transit through India. The order shall take place without \nprior notice to the designated individuals/entities. \n12.2 The immigration authorities shall ensure strict compliance of the order and also \ncommunicate the details of entry or transit through India of the designated individuals \nas prevented by them to the UAPA Nodal Officer in Foreigners Division of MHA."} |
| {"text": "13. Procedure for communication of compliance of action taken under Section \n51A: The Central [designated] Nodal Officer for the UAPA and the Nodal Officer in the \nForeigners Division, MHA shall furnish the details of funds, financial assets or \neconomic resources or related services of designated individuals/entities frozen by an \norder, and details of the individuals whose entry into India or transit through India was \nprevented, respectively, to the Ministry of External Affairs for onward communication \nto the United Nations. \n14. Communication of the Order issued under Section 51A of Unlawful Activities \n(Prevention) Act, 1967: The order issued under Section 51A of the Unlawful \nActivities (Prevention) Act, 1967 by the Central [designated] Nodal Officer for the UAPA \nrelating to funds, financial assets or economic resources or related services, shall be \ncommunicated to all the UAPA nodal officers in the country, the Regulators of Financial \nServices, FIU-IND and DNFBPs, banks, depositories/stock exchanges, intermediaries \nregulated by SEBI, Registrars performing the work of registering immovable properties \nthrough the UAPA Nodal Officer of the State/UT. \n15. All concerned are requested to ensure strict compliance of this order. \n \n \n(Ashutosh Agnihotri) \nJoint Secretary to the Government of India \nTo, \n1) \nGovernor, Reserve Bank of India, Mumbai \n2) \nChairman, Securities & Exchange Board of India, Mumbai \n3) \nChairman, Insurance Regulatory and Development Authority, Hyderabad. \n4) \nForeign Secretary, Ministry of External Affairs, New Delhi. \n5) \nFinance Secretary, Ministry of Finance, New Delhi. \n6) \nRevenue Secretary, Department of Revenue, Ministry of Finance, New Delhi. \n7) \nSecretary, Ministry of Corporate Affairs, New Delhi \n8) \nChairman, Central Board of Indirect Taxes & Customs, New Delhi. \n9) \nDirector, Intelligence Bureau, New Delhi. \n10) \nAdditional Secretary, Department of Financial Services, Ministry of Finance,"} |
| {"text": "New Delhi. \n11) \nChief Secretaries of all States/Union Territories \n12) \nPrincipal Secretary (Home)/Secretary (Home) of all States/ Union Territories \n13) \nDirectors General of Police of all States & Union Territories \n14) \nDirector General of Police, National Investigation Agency, New Delhi. \n15) \nCommissioner of Police, Delhi. \n16) \nJoint Secretary (Foreigners), Ministry of Home Affairs, New Delhi. \n17) \nJoint Secretary (Capital Markets), Department of Economic Affairs, Ministry of \nFinance, New Delhi. \n18) \nJoint Secretary (Revenue), Department of Revenue, Ministry of Finance, New \nDelhi. \n19) \nDirector (FIU-IND), New Delhi. \n \nCopy for information to: - \n1. \nSr. PPS to HS \n2. \nPS to SS (IS)"} |
| {"text": "Annex – II \nF.No.P - 12011/14/2022-ES Cell-DOR \nGovernment of India \nMinistry of Finance \nDepartment of Revenue \n*** \nNew Delhi, dated the 1st September, 2023 \nORDER \nSubject: - Procedure for implementation of Section 12A of “The Weapons of \nMass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) \nAct, 2005” . \nSection 12A of The Weapons of Mass Destruction and their Delivery Systems \n(Prohibition of Unlawful Activities) Act, 2005 [hereinafter referred to as ‘the Act’] reads \nas under: - \n\"12A. (1) No person shall finance any activity which is prohibited under this \nAct, or under the United Nations (Security Council) Act, 1947 or any other relevant Act \nfor the time being in force, or by an order issued under any such Act, in relation to \nweapons \nof \nmass \ndestruction \nand \ntheir \ndelivery \nsystems. \n(2) For prevention of financing by any person of any activity which is prohibited \nunder this Act, or under the United Nations (Security Council) Act, 1947 or any other \nrelevant Act for the time being in force, or by an order issued under any such Act, in \nrelation to weapons of mass destruction and their delivery systems, the Central \nGovernment shall have power to— \na) \nfreeze, seize or attach funds or other financial assets or economic \nresources— \ni.owned or controlled, wholly or jointly, directly or indirectly, by such person; or \nii.held by or on behalf of, or at the direction of, such person; or \niii.derived or generated from the funds or other assets owned or controlled, directly or \nindirectly, by such person; \nprohibit \nany \nperson \nfrom \nmaking \nfunds, \nfinancial \nassets \nor \neconomic"} |
| {"text": "resources or related services available for the benefit of persons related to any activity \nwhich is prohibited under this Act, or under the United Nations (Security Council) Act, \n1947 or any other relevant Act for the time being in force, or by an order issued under \nany such Act, in relation to weapons of mass destruction and their delivery systems. \n(3) The Central Government may exercise its powers under this section through any \nauthority who has been assigned the power under sub-section (1) of section 7.” \nII In order to ensure expeditious and effective implementation of the provisions of \nSection 12A of the Act, the procedure is outlined below. \n1. Appointment and communication details of Section 12A Nodal Officers: \n1.1 In exercise of the powers conferred under Section 7(1) of the Act, the Central \nGovernment assigns Director, FIU-India, Department of Revenue, Ministry of \nFinance, as the authority to exercise powers under Section 12A of the Act. The \nDirector, FIU-India shall be hereby referred to as the Central Nodal Officer (CNO) for \nthe purpose of this order. [Telephone Number: 011- 23314458, 011- 23314435, 011-\n23314459 (FAX), email address: dir@fiuindia.gov.in]. \n1.2 Regulator under this order shall have the same meaning as defined in Rule 2(fa) \nof Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. Reporting \nEntity (RE) shall have the same meaning as defined in Section 2 (1) (wa) of Prevention \nof Money-Laundering Act, 2002. DNFPBs is as defined in section 2(1) (sa) of \nPrevention of Money-Laundering Act, 2002. \n1.3 The Regulators, Ministry of Corporate Affairs and Foreigners Division of MHA shall \nnotify a Nodal Officer for implementation of provisions of Section 12A of the Act. The \nRegulator may notify the Nodal Officer appointed for implementation of provisions of \nSection 51A of UAPA, also, as the Nodal Officer for implementation of Section 12A of \nthe Act. All the States and UTs shall notify a State Nodal officer for implementation of \nSection 12A of the Act. A State/UT may notify the State Nodal Officer appointed for \nimplementation of provisions of Section 51A of UAPA, also, as the Nodal Officer for \nimplementation of Section 12A of the Act. \n1.4 The CNO shall maintain an updated list of all Nodal Officers, and share the updated \nlist with all Nodal Officers periodically. The CNO shall forward the updated list of all \nNodal Officers to all REs."} |
| {"text": "2. Communication of the lists of designated individuals/entities: \n2.1 The Ministry of External Affairs will electronically communicate, without delay, the \nchanges made in the list of designated individuals and entities (hereinafter referred to \nas ‘designated list’) in line with section 12A (1) to the CNO and Nodal officers. \n2.1.1 Further, the CNO shall maintain the Designated list on the portal of FIU-India. \nThe list would be updated by the CNO, as and when it is updated, as per para 2.1 \nabove, without delay. It shall make available for all Nodal officers, the State Nodal \nOfficers, and to the Registrars performing the work of registration of immovable \nproperties, either directly or through State Nodal Officers, without delay. \n2.1.2 The Ministry of External Affairs may also share other information relating to \nprohibition / prevention of financing of prohibited activity under Section 12A (after its \ninitial assessment of the relevant factors in the case) with the CNO and other \norganizations concerned, for initiating verification and suitable action. \n2.1.3 The Regulators shall make available the updated designated list, without delay, \nto their REs. The REs will maintain the designated list and update it, without delay, \nwhenever changes are made as per para 2.1 above. \n2.2 The Nodal Officer for Section 12A in Foreigners Division of MHA shall forward the \nupdated designated list to the immigration authorities and security agencies, without \ndelay. \n3. Regarding funds, financial assets or economic resources or related services \nheld in the form of bank accounts, stocks or insurance policies, etc. \n3.1 All Financial Institutions shall – \ni. Verify if the particulars of the entities/individual, party to the financial transactions, \nmatch with the particulars of designated list and in case of match, REs shall not carry \nout such transaction and shall immediately inform the transaction details with full \nparticulars of the funds, financial assets or economic resources involved to the CNO \nby email, FAX and by post, without delay. \nii. Run a check, on the given parameters, at the time of establishing a relation with a \ncustomer and on a periodic basis to verify whether individuals and entities in the \ndesignated list are holding any funds, financial assets or economic resources or related \nservices, in the form of bank accounts, stocks, Insurance policies etc. In case, the"} |
| {"text": "particulars of any of their customers match with the particulars of designated list, REs \nshall immediately inform full particulars of the funds, financial assets or economic \nresources or related services held in the form of bank accounts, stocks or insurance \npolicies etc., held on their books to the CNO by email, FAX and by post, without delay. \niii. The REs shall also send a copy of the communication, mentioned in 3.1 (i) and (ii) \nabove, to State Nodal Officer, where the account/transaction is held, and to their \nRegulator, as the case may be, without delay. \niv. In case there are reasons to believe beyond doubt that funds or assets held by a \ncustomer would fall under the purview of clause (a) or (b) of sub-section (2) of Section \n12A, REs shall prevent such individual/entity from conducting financial transactions, \nunder intimation to the CNO by email, FAX and by post , without delay. \n3.2 On receipt of the particulars, as referred to in Paragraph 3.1 above, the CNO would \ncause a verification to be conducted by the State Police and/or the Central Agencies \nso as to ensure that the individuals/entities identified by the REs are the ones in \ndesignated list and the funds, financial assets or economic resources or related \nservices, reported by REs are in respect of the designated individuals/entities. This \nverification would be completed expeditiously from the date of receipt of such \nparticulars. \n3.3 In case, the results of the verification indicate that the assets are owned by, or are \nheld for the benefit of, the designated individuals/entities, an order to freeze these \nassets under Section 12A would be issued by the CNO without delay and be conveyed \nelectronically to the concerned RE under intimation to respective Regulators. The CNO \nshall also forward a copy thereof to all the Principal Secretaries/Secretaries, Home \nDepartment of the States/UTs and All Nodal officers in the country, so that any \nindividual or entity may be prohibited from making any funds, financial assets or \neconomic resources or related services available for the benefit of the designated \nindividuals / entities. The CNO shall also forward a copy of the order to all Directors \nGeneral of Police/ Commissioners of Police of all States/UTs for initiating suitable \naction. \n3.4 The order shall be issued without prior notice to the designated individual/entity. \n4. Regarding financial assets or economic resources of the nature of immovable \nproperties:"} |
| {"text": "4.1 The Registrars performing work of registration of immovable properties shall -- \ni.Verify if the particulars of the entities/individual, party to the transactions, match with \nthe particulars of the designated list, and, in case of match, shall not carry out such \ntransaction and immediately inform the details with full particulars of the assets or \neconomic resources involved to the State Nodal Officer, without delay. \nii.Verify from the records in their respective jurisdiction, without delay, on given \nparameters, if the details match with the details of the individuals and entities in the \ndesignated list. In case, the designated individuals/entities are holding financial assets \nor economic resources of the nature of immovable property, and if any match with the \ndesignated individuals/entities is found, the Registrar shall immediately inform the \ndetails with full particulars of the assets or economic resources involved to the State \nNodal Officer, without delay. \niii.In case there are reasons to believe beyond doubt that assets that are held by an \nindividual/entity would fall under the purview of clause (a) or (b) of sub-section (2) of \nSection 12A, Registrar shall prevent such individual/entity from conducting \ntransactions, under intimation to the State Nodal Officer by email, FAX and by post , \nwithout delay. \n4.2 The State Nodal Officer would cause communication of the complete particulars of \nsuch individual/entity along with complete details of the financial assets or economic \nresources to the CNO without delay by email, FAX and by post. \n4.3 The State Nodal Officer may cause such inquiry to be conducted by the State \nPolice so as to ensure that the particulars sent are indeed of these designated \nindividuals/entities. This verification shall be completed without delay and shall be \nconveyed, within 24 hours of the verification, if it matches, with the particulars of the \ndesignated individual/entity, to the CNO without delay by email, FAX and by post. \n4.4 The CNO may also have the verification conducted by the Central Agencies. This \nverification would be completed expeditiously. \n4.5 In case, the results of the verification indicate that the assets are owned by, or are \nheld for the benefit of, the designated individuals/entities, an order to freeze these \nassets under Section 12A would be issued by the CNO without delay and be conveyed \nelectronically to the concerned Registrar performing the work of registering immovable \nproperties, and to FIU under intimation to the concerned State Nodal Officer. The CNO"} |
| {"text": "shall also forward a copy thereof to all the Principal Secretaries/Secretaries, Home \nDepartment of the States/UTs and All Nodal officers in the country, so that any \nindividual or entity may be prohibited from making any funds, financial assets or \neconomic resources or related services available for the benefit of the designated \nindividuals / entities. The CNO shall also forward a copy of the order to all Directors \nGeneral of Police/ Commissioners of Police of all States/UTs for initiating suitable \naction. \n4.6 The order shall be issued without prior notice to the designated individual/entity. \n5. Regarding the real-estate agents, dealers of precious metals/stones \n(DPMS), Registrar of Societies/ Firms/ non-profit organizations, The Ministry \nof Corporate Affairs and Designated Non-Financial Businesses and \nProfessions (DNFBPs): \n(i) The dealers of precious metals/stones (DPMS) as notified under PML (Maintenance \nof Records) Rules, 2005 and Real Estate Agents, as notified under clause (vi) of \nSection 2(1) (sa) of Prevention of Money-Laundering Act, 2002, are required to ensure \nthat if any designated individual/entity approaches them for sale/purchase of precious \nmetals/stones/Real Estate Assets or attempts to undertake such transactions, the \ndealer should not carry out such transaction and, without delay, inform the Section 12A \nNodal officer in the Central Board of Indirect Taxes and Customs (CBIC). Also, If the \ndealers hold any assets or funds of the designated individual/entity, they shall freeze \nthe same without delay and inform the Section 12A Nodal officer in the CBIC, who will, \nin turn, follow procedure similar to as laid down for State Nodal Officer in the \nparagraphs 4.2 to 4.6. \n(ii) Registrar of Societies/ Firms/ non-profit organizations are required to ensure that if \nany designated individual/ entity is a shareholder/ member/ partner/ director/ settler/ \ntrustee/ beneficiary/ beneficial owner of any society/ partnership firm/ trust/ non-profit \norganization, then the Registrar shall freeze any transaction for such designated \nindividual/ entity and shall inform the State Nodal Officer, without delay, and, if such \nsociety/ partnership firm/ trust/ non-profit organization holds funds or assets of \ndesignated individual/ entity, follow the procedure as laid down for State Nodal Officer \nin the paragraphs 4.2 to 4.6 above. The Registrar should also ensure that no societies/ \nfirms/ non-profit organizations should be allowed to be registered if any of the"} |
| {"text": "designated individual/ entity is a director/ partner/ office bearer/ trustee/ settler/ \nbeneficiary or beneficial owner of such juridical person and, in case, such request is \nreceived, then the Registrar shall inform the State Nodal Officer, without delay. \n(iii)The State Nodal Officer shall also advise appropriate department of the State/UT, \nadministering the operations relating to Casinos, to ensure that the designated \nindividuals/ entities should not be allowed to own or have beneficial ownership in any \nCasino operation. Further, if any designated individual/ entity visits or participates in \nany game in the Casino or if any assets of such designated individual/ entity are with \nthe Casino operator, or if the particulars of any client match with the particulars of \ndesignated individuals/ entities, the Casino owner shall inform the State Nodal Officer, \nwithout delay, and shall freeze any such transaction. \n(iv) The Ministry of Corporate Affairs shall issue an appropriate order to the Institute of \nChartered Accountants of India, Institute of Cost and Works Accountants of India and \nInstitute of Company Secretaries of India (ICSI), requesting them to sensitize their \nrespective members to the provisions of Section 12A, so that, if any designated \nindividual/entity approaches them, for entering/ investing in the financial sector and/or \nimmovable property, or they are holding or managing any assets/ resources of \ndesignated individual/ entities, then the member shall convey the complete details of \nsuch designated individual/ entity to Section 12A Nodal Officer in the Ministry of \nCorporate Affairs, who shall in turn follow the similar procedure as laid down for State \nNodal Officer in paragraph 4.2 to 4.6 above. \n(v) The members of these institutes should also be sensitized by the Institute of \nChartered Accountants of India, Institute of Cost and Work Accountants of India and \nInstitute of Company Secretaries of India (ICSI) that if they have arranged for or have \nbeen approached for incorporation/ formation/ registration of any company, limited \nliability firm, partnership firm, society, trust, association where any designated \nindividual/ entity is a director/ shareholder/ member of a company/ society/ association \nor partner in a firm or settler/ trustee or beneficiary of a trust or a beneficial owner of a \njuridical person, then the member of the institute should not incorporate/ form/ register \nsuch juridical person and should convey the complete details of such designated \nindividual/ entity to Section 12A Nodal Officer in the Ministry of Corporate Affairs. \n(vi) In addition, a member of the ICSI shall, if he/she is Company Secretary or is holding"} |
| {"text": "any managerial position where any of designated individual/ entity is a Director and/or \nShareholder or having beneficial ownership of any such juridical person, convey the \ncomplete details of such designated individual/ entity to Section 12A Nodal Officer in \nthe Ministry of Corporate Affairs, who shall follow the similar procedure as laid down in \nparagraph 4.2 to 4.6 above for State Nodal Officer, if such company, limited liability \nfirm, partnership firm, society, trust, or association holds funds or assets of the \ndesignated individual/entity. \n(vii) In case any designated individual/ entity is a shareholder/ director/ whole time \ndirector in any company registered with the Registrar of Companies (ROC) or \nbeneficial owner of such company or partner in a Limited Liabilities Partnership Firm \nregistered with ROC or beneficial owner of such firm, the ROC should convey the \ncomplete details of such designated individual/ entity to section 12A Nodal officer of \nMinistry of Corporate Affairs. If such company or LLP holds funds or assets of the \ndesignated individual/ entity, he shall follow the similar procedure as laid down in \nparagraph 4.2 to 4.6 above for State Nodal Officer. Further the ROCs are required to \nensure that no company or limited liability Partnership firm shall be allowed to be \nregistered if any of the designated individual/ entity is the Director/ Promoter/ Partner \nor beneficial owner of such company or firm, and in case such a request is received, \nthe ROC should inform the Section 12A Nodal Officer in the Ministry of Corporate \nAffairs. \n(viii) All communications to Nodal officer as enunciated in subclauses (i) to (vii) above \nshould, inter alia, include the details of funds and assets held and the details of \ntransaction. \n(ix) The Other DNBPs are required to ensure that if any designated individual/entity \napproaches them for a transaction or relationship or attempts to undertake such \ntransactions, the dealer should not carry out such transaction and, without delay, \ninform the Section 12A Central Nodal officer. The communication to the Central Nodal \nOfficer would include the details of funds and assets held and the details of the \ntransaction. Also, If the dealers hold any assets or funds of the designated \nindividual/entity, they shall freeze the same without delay and inform the Section 12A \nCentral Nodal officer. (DNFBPs shall have the same meaning as the definition in \nSection 2(1) (sa) of Prevention of Money-Laundering Act,2002.)"} |
| {"text": "5.1. All Natural and legal persons holding any funds or other assets of designated \npersons and entities, shall, without delay and without prior notice, freeze any \ntransaction in relation to such funds or assets and shall immediately inform the State \nNodal officer along with details of the funds/assets held, who in turn would follow the \nsame procedure as in para 4.2 to 4.6 above for State Nodal Officer. This obligation \nshould extend to all funds or other assets that are owned or controlled by the \ndesignated person or entity, and not just those that can be tied to a particular act, plot \nor threat of proliferation; those funds or other assets that are wholly or jointly owned or \ncontrolled, directly or indirectly, by designated persons or entities; and the funds or \nother assets derived or generated from funds or other assets owned or controlled \ndirectly or indirectly by designated persons or entities, as well as funds or other assets \nof persons and entities acting on behalf of, or at the direction of designated persons or \nentities. \n5.2 No person shall finance any activity related to the 'designated list' referred to in \nPara 2.1, except in cases where exemption has been granted as per Para 6 of this \nOrder. \n5.3 Further, the State Nodal Officer shall cause to monitor the transactions / accounts \nof the designated individual/entity so as to prohibit any individual or entity from making \nany funds, financial assets or economic resources or related services available for the \nbenefit of the individuals or entities in the designated list. The State Nodal Officer shall, \nupon becoming aware of any transactions and attempts by third party, without delay, \nbring the incidence to the notice of the CNO and the DGP/Commissioner of Police of \nthe State/UT for initiating suitable action. \n5.4 Where the CNO has reasons to believe that any funds or assets are violative of \nSection 12A (1) or Section 12A (2)(b) of the Act, he shall, by order, freeze such funds \nor Assets, without any delay, and make such order available to authorities, Financial \nInstitutions, DNFBPs and other entities concerned. \n5.5 The CNO shall also have the power to issue advisories and guidance to all persons, \nincluding Fls and DNFBPs obligated to carry out sanctions screening. The concerned \nRegulators shall take suitable action under their relevant laws, rules or regulations for \neach violation of sanction screening obligations under section 12A of the WMD Act. \n6. Regarding exemption, to be granted to the above orders"} |
| {"text": "6.1 The above provisions shall not apply to funds and other financial assets or \neconomic resources that have been determined by the CNO to be: - \n(a) necessary for basic expenses, including payments for foodstuff, rent or mortgage, \nmedicines and medical treatment, taxes, insurance premiums and public utility \ncharges, or exclusively for payment of reasonable professional fees and \nreimbursement of incurred expenses associated with the provision of legal services or \nfees or service charges for routine holding or maintenance of frozen funds or other \nfinancial assets or economic resources, consequent to notification by the MEA \nauthorizing access to such funds, assets or resources. \nThis shall be consequent to notification by the MEA to the UNSC or its Committee, of \nthe intention to authorize access to such funds, assets or resources, and in the \nabsence of a negative decision by the UNSC or its Committee within 5 working days \nof such notification. \n(b) necessary for extraordinary expenses, provided that such determination has been \nnotified by the MEA to the UNSC or its Committee, and has been approved by the \nUNSC or its Committee; \n6.2. The accounts of the designated individuals/ entities may be allowed to be credited \nwith: \n(a) interest or other earnings due on those accounts, or \n(b) payments due under contracts, agreements or obligations that arose prior to the \ndate on which those accounts became subject to the provisions of section 12A of the \nAct. \nProvided that any such interest, other earnings and payments continue to be subject \nto those provisions under para 3.3; \n6.3 Any freezing action taken related to the designated list under this Order should not \nprevent a designated individual or entity from making any payment due under a \ncontract entered into prior to the listing of such individual or entity, provided \nthat: \n(i) the CNO has determined that the contract is not related to any of the prohibited \ngoods, services, technologies, or activities, under this Act, or under the United Nations \n(Security Council) Act, 1947 or any other relevant Act for the time being in force, or by"} |
| {"text": "an order issued under any such Act, in relation to weapons of mass destruction and \ntheir delivery systems; \n(ii) the CNO has determined that the payment is not directly or indirectly received by \nan individual or entity in the designated list under this Order; and \n(iii) the MEA has submitted prior notification to the UNSC or its Committee, of the \nintention to make or receive such payments or to authorise, where appropriate, he \nunfreezing of funds, other financial assets or economic resources for this purpose, ten \nworking days prior to such authorization \n7. Regarding procedure for unfreezing of funds, financial assets or economic \nresources or related services of individuals/entities inadvertently affected by the \nfreezing mechanism upon verification that the individual or entity is not a \ndesignated person or no longer meet the criteria for designation: \n7.1 Any individual/entity, if it has evidence to prove that the freezing of funds, financial \nassets or economic resources or related services, owned/held has been inadvertently \nfrozen, an application may be moved giving the requisite evidence, in writing, to the \nrelevant RE/Registrar of Immovable Properties/ ROC/Regulators and the State. \n7.2 The RE/Registrar of Immovable Properties/ROC/Regulator and the State Nodal \nOfficer shall inform, and forward a copy of the application, together with full details of \nthe asset frozen, as given by applicant to the CNO by email, FAX and by Post, within \ntwo working days. Also, listed persons and entities may petition a request for delisting \nat the Focal Point Mechanism established under UNSC Resolution. \n7.3 The CNO shall cause such verification, as may be required on the basis of the \nevidence furnished by the individual/entity, and, if satisfied, it shall pass an order, \nwithout delay, unfreezing the funds, financial assets or economic resources or related \nservices, owned/held by such applicant, under intimation to all RE/Registrar of \nImmovable Properties/ROC/Regulators and the State Nodal Officer. However, if it is \nnot possible, for any reason, to pass an Order unfreezing the assets within 5 working \ndays, the CNO shall inform the applicant expeditiously. \n7.4 The CNO shall, based on de-listing of individual and entity under UN Security \nCouncil Resolutions, shall pass an order, if not required to be designated in any other \norder, without delay, unfreezing the funds, financial assets or economic resources or \nrelated services, owned/held by such applicant, under intimation to all RE/Registrar of"} |
| {"text": "Immovable Properties/ROC/Regulators and the State Nodal Officer. \n8. Procedure for communication of compliance of action taken under Section \n12A: The CNO and the Nodal Officer in the Foreigners Division, MHA shall furnish the \ndetails of funds, financial assets or economic resources or related services of \ndesignated individuals/entities, frozen by an order, and details of the individuals whose \nentry into India or transit through India was prevented, respectively, to the Ministry of \nExternal Affairs, for onward communication to the United Nations. \n9. Communication of the Order issued under Section 12A: The Order issued under \nSection 12A of the Act by the CNO relating to funds, financial assets or economic \nresources or related services, shall be communicated to all nodal officers in the \ncountry. \n10. This order is issued in suppression of F.No.P-12011/14/2022-ES Cell-DOR, dated \n30th January 2023. \n11. All concerned are requested to ensure strict compliance of this order. \n \n(Manoj Kumar Singh) \nDirector (HQ) \nTo, \n1)Governor, Reserve Bank of India, Mumbai \n2)Chairman, Securities & Exchange Board of India, Mumbai \n3)Chairman, Insurance Regulatory and Development Authority, Hyderabad. \n4)Foreign Secretary, Ministry of External Affairs, New Delhi. \n5)Finance Secretary, Ministry of Finance, New Delhi. \n6)Revenue Secretary, Department of Revenue, Ministry of Finance, New Delhi. \n7)Secretary, Ministry of Corporate Affairs, New Delhi \n8)Chairman, Central Board of Indirect Taxes & Customs, New Delhi. \n9)Director, Intelligence Bureau, New Delhi. \n10) Additional Secretary, Department of Financial Services, Ministry of Finance, New"} |
| {"text": "Delhi. \n11) Chief Secretaries of all States/Union Territories \n12) Principal Secretary (Home)/Secretary (Home) of all States/ Union Territories \n13) Directors General of Police of all States & Union Territories \n14) Director General of Police, National Investigation Agency, New Delhi. \n15) Commissioner of Police, Delhi. \n16) Joint Secretary (Foreigners), Ministry of Home Affairs, New Delhi. \n17) Joint Secretary (Capital Markets), Department of Economic Affairs, Ministry of \nFinance, New Delhi. \n18) Joint Secretary (Revenue), Department of Revenue, Ministry of Finance, New \nDelhi. \n19) Director (FIU-IND), New Delhi. \n \nCopy for information to: - \n1. Sr. PPS to HS \n2. PS to SS (IS)"} |
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