TaxTMI 
TaxTMI 
Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on November 06, 2024)
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.... 2023) (Updated as on April 28, 2023) (Updated as on May 10, 2021) (Updated as on April 01, 2021) (Updated as on March 23, 2021) (Updated as on December 18, 2020) (Updated as on April 20, 2020) (Updated as on April 01, 2020) (Updated as on January 09, 2020) (Updated as on August 09, 2019) (Updated as on May 29, 2019) Master Direction - Know Your Customer (KYC) Direction, 2016 Contents INTRODUCTION 3 CHAPTER I 4 PRELIMINARY 4 CHAPTER II 15 General. 15 CHAPTER III 19 Customer Acceptance Policy 19 CHAPTER IV 21 Risk Management. 21 Chapter V 22 Customer Identification Procedure (CIP) 22 Chapter VI 24 Customer Due Diligence (CDD) Procedure 24 Part I - Customer Due Diligence (CDD) Procedure in case of Individuals 24 Part II - CDD Measures for Sole Proprietary firms 34 Part III- CDD Measures for Legal Entities 35 Part IV - Identification of Beneficial Owner 38 Part V - On-going Due Diligence. 38 Part VI - Enhanced and Simplified Due Diligence Procedure. 43 Chapter VII 48 Record Management 48 Chapter VIII 50 Reporting Requirements to Financial Intelligence Unit - India 50 Chapter IX. 52 Requirements/obligation....
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....that it is necessary and expedient in the public interest to do so, hereby issues the Directions hereinafter specified. 1 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 3 CHAPTER I PRELIMINARY 1. Short Title and Commencement. (a) These Directions shall be called the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016. (b) These directions shall come into effect on the day they are placed on the official website of the Reserve Bank of India. 2. Applicability (a) 2The provisions of these Directions shall apply to every entity regulated by Reserve Bank of India, more specifically as defined in 3 (b) (xiv) below, except where specifically mentioned otherwise. (b) These directions shall also apply to those branches and majority owned subsidiaries of the REs which are located abroad, to the extent they are not contradictory to the local laws in the host country, provided that: i. 3where applicable laws and regulations prohibit implementation of these guidelines, the same shall be brought to the notice of the Reserve Bank of India. RBI may advise further necessary action by the RE including application of additiona....
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....ments or voting agreements. b. 7Where the customer is a partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 10 percent of capital or profits of the partnership or who exercises control through other means. Explanation - For the purpose of this sub-clause, "control" shall include the right to control the management or policy decision. 4 Amended vide circular DOR.AML.BC.No.27/14.01.001/2019-20 dated January 9, 2020. 5 Amended vide circular DBR.AML.BC.No.39/14.01.001/2018-19 dated May 29, 2019. 6 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 7 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. c. Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 15 percent of the property or capital or profits of the unincorporated association or body of individuals. Explanation: Term ....
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....erson or individual, as the case may be, who controls and manages the affairs of the RE, if the RE is an unincorporated association or a body of individuals, and f. a person who holds the position of senior management or equivalent designated as a 'Designated Director' in respect of Cooperative Banks and Regional Rural Banks. Explanation - For the purpose of this clause, the terms "Managing Director" and "Whole-time Director" shall have the meaning assigned to them in the Companies Act, 2013. viii. 10"Digital KYC" means the capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the RE as per the provisions contained in the Act. ix. 11"Digital Signature" shall have the same meaning as assigned to it in clause (p) of sub-section (1) of section (2) of the Information Technology Act, 2000 (21 of 2000). X. 12"Equivalent e-document" means an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signatur....
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....mployer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial 13 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 14 Inserted vide circular DOR.AML.BC.No.27/14.01.001/2019-20 dated January 9, 2020. 15 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 16 Inserted vide circular DBR.AML.BC.No.39/14.01.001/2018-19 dated May 29, 2019. 17 Amended vide circular DOR.AML.BC.No.27/14.01.001/2019-20 dated January 9, 2020. 8 banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; c. the customer shall submit OVD with current address within a period of three months of submitting the documents specified at 'b' above d. where the OVD presented by a foreign national does not contain the details of address, in such case the documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address. Explanation: For the purpose of this clause, a docu....
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.... of the operation of a small account and controls to be exercised for such account are specified in paragraph 23. XX. xxi. "Transaction" means a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and includes: a. opening of an account; b. deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means; c. the use of a safety deposit box or any other form of safe deposit; d. entering into any fiduciary relationship; e. any payment made or received, in whole or in part, for any contractual or other legal obligation; or f. establishing or creating a legal person or legal arrangement. (b) Terms bearing meaning assigned in this Directions, unless the context otherwise requires, shall bear the meanings assigned to them below: i. "Common Reporting Standards" (CRS) means reporting standards set for implementation of multilateral agreement signed to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters. 21 Amended vide circular DOR.AML.REC.44/....
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.... 23 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 11 viii. "IGA" means Inter Governmental Agreement between the Governments of India and the USA to improve international tax compliance and to implement FATCA of the USA. ix. "KYC Templates" means templates prepared to facilitate collating and reporting the KYC data to the CKYCR, for individuals and legal entities. X. "Non-face-to-face customers" means customers who open accounts without visiting the branch/offices of the REs or meeting the officials of REs. xi. 24"On-going Due Diligence" means regular monitoring of transactions in accounts to ensure that those are consistent with RE's knowledge about the customers, customers' business and risk profile, the source of funds / wealth. xii. 25Payable-through accounts: The term payable-through accounts refers to correspondent accounts that are used directly by third parties to transact business on their own behalf. xiii. "Periodic Updation" means steps taken to ensure that documents, data or information collected under the CDD process is kept up-to-date and relevant by undertaking reviews of existing records at periodicity prescribe....
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....ng sent to the same financial institutions but may/may not be ultimately intended for different persons. b. Beneficiary: Beneficiary refers to a natural or legal person or legal arrangement who / which is identified by the originator as the receiver of the requested wire transfer. c. Beneficiary RE: It refers to a financial institution, regulated by the RBI, which receives the wire transfer from the ordering financial institution directly or through an intermediary RE and makes the funds available to the beneficiary. d. Cover Payment: Cover Payment refers to a wire transfer that combines a payment message sent directly by the ordering financial institution to the beneficiary financial institution with the routing of the funding instruction (the cover) from the ordering financial institution to the beneficiary financial institution through one or more intermediary financial institutions. 27 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 28 Amended vide circular DOR.AML.REC.No. 15/14.01.001/2021-22 dated May 10, 2021. 29 Amended vide circular DOR.AML.REC.13/14.01.001/2023-24 dated May 4, 2023. 13 e. Cross-border wire transfer: Cr....
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....s to a combination of letters, numbers or symbols, determined by the payment service provider, in accordance with the protocols of the payment and settlement system or messaging system used for the wire transfer. n. Wire transfer: Wire transfer refers to any transaction carried out on behalf of an originator through a financial institution by electronic means with a view to making an amount of funds available to a beneficiary at a beneficiary financial institution, irrespective of whether the originator and the beneficiary are the same person. (c) All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1935, the Prevention of Money Laundering Act, 2002, the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, the 30Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and regulations made thereunder, any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be. CHAPTER II General 4. (a) There shall be a Know Your Customer (KYC) policy duly approved by th....
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.... time to time. (b) The risk assessment by the RE shall be properly documented and be proportionate to the nature, size, geographical presence, complexity of activities/structure, etc. of the RE. Further, the periodicity of risk assessment exercise shall be determined by the Board or any committee of the Board of the RE to which power in this regard has been delegated, in alignment with the outcome of the risk assessment exercise. However, it should be reviewed at least annually. (c) The outcome of the exercise shall be put up to the Board or any committee of the Board to which power in this regard has been delegated, and should be available to competent authorities and self-regulating bodies. 32 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 33 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 16 345B. REs shall apply a Risk Based Approach (RBA) for mitigation and management of the risks (identified on their own or through national risk assessment) and should have Board approved policies, controls and procedures in this regard. REs shall implement a CDD programme, having regard to the ML/TF risks identif....
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..... (b) 37No account is opened where the RE is unable to apply appropriate CDD measures, either due to non-cooperation of the customer or non-reliability of the documents/information furnished by the customer. The RE shall consider filing an STR, if necessary, when it is unable to comply with the relevant CDD measures in relation to the customer. (c) No transaction or account-based relationship is undertaken without following the CDD procedure. (d) The mandatory information to be sought for KYC purpose while opening an account and during the periodic updation, is specified. (e) 38Additional information, where such information requirement has not been specified in the internal KYC Policy of the RE, is obtained with the explicit consent of the customer. (f) 39REs shall apply the CDD procedure at the UCIC level. Thus, if an existing KYC compliant customer of a RE desires to open another account or avail any other product or service from the same RE, there shall be no need for a fresh CDD exercise as far as identification of the customer is concerned. (g) CDD Procedure is followed for all the joint account holders, while opening a joint account. (h) Circumstances in ....
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....f business activity, and information about the customer's business and their location, geographical risk covering customers as well as transactions, type of products/services offered, delivery channel used for delivery of products/services, types of transaction undertaken - cash, cheque/monetary instruments, wire transfers, forex transactions, etc. While considering customer's identity, the ability to confirm identity documents through online or other services offered by issuing authorities may also be factored in. (d) 47The risk categorisation of a customer and the specific reasons for such categorisation shall be kept confidential and shall not be revealed to the customer to avoid tipping off the customer. Provided that various other information collected from different categories of customers relating to the perceived risk, is non-intrusive and the same is specified in the KYC policy. 48Explanation: FATF Public Statement, the reports and guidance notes on KYC/AML issued by the Indian Banks Association (IBA), and other agencies, etc., may also be used in risk assessment. 45 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 46 Amended vi....
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....iance with customer due diligence and record-keeping requirements in line with the requirements and obligations under the PML Act. (d) The third party shall not be based in a country or jurisdiction assessed as high risk. (e) The ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures, as applicable, will be with the RE. 23 Chapter VI Customer Due Diligence (CDD) Procedure Part I - Customer Due Diligence (CDD) Procedure in case of Individuals 15. 51Deleted 16. 52For undertaking CDD, REs shall obtain the following from an individual while establishing an account-based relationship or while dealing with the individual who is a beneficial owner, authorised signatory or the power of attorney holder related to any legal entity: (a) the Aadhaar number where, (i) he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or (ii) he decides to submit his Aadhaar number voluntarily to a bank or any RE notified under first proviso to sub-section (1) of section 11A of the PML A....
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....ied by the Government for a class of REs, instead of carrying out digital KYC, the RE pertaining to such class may obtain a certified copy of the proof of possession of Aadhaar number or the OVD and a recent photograph where an equivalent e- document is not submitted. Provided further that in case e-KYC authentication cannot be performed for an individual desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 owing to injury, illness or infirmity on account of old age or otherwise, and similar causes, REs shall, apart from obtaining the Aadhaar number, perform identification preferably by carrying out offline 54 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 25 verification or alternatively by obtaining the certified copy of any other OVD or the equivalent e-document thereof from the customer. CDD done in this manner shall invariably be carried out by an official of the RE and such exception handling shall also be a part of the concurrent audit as mandated in paragraph 8. REs shall ensure to duly record the ....
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.... paragraph 18 (V-CIP) is carried out. If Aadhaar details are used under paragraph 18, the process shall be followed in its entirety including fresh Aadhaar OTP authentication. vii. If the CDD procedure as mentioned above is not completed within a year, in respect of deposit accounts, the same shall be closed immediately. In respect of borrowal accounts no further debits shall be allowed. viii. 57A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC in non- face-to-face mode with any other RE. Further, while uploading KYC information to CKYCR, REs shall clearly indicate that such accounts are opened using OTP based e-KYC and other REs shall not open accounts based on the KYC information of accounts opened with OTP based e-KYC procedure in non-face- to-face mode. ix. REs shall have strict monitoring procedures including systems to generate alerts in case of any non-compliance/violation, to ensure compliance with the above mentioned conditions. 18. 58REs may undertake V-CIP to carry out: i) CDD in case of new customer on-boarding for individual customers, proprietor in case of proprie....
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....e live GPS co-ordinates (geo-tagging) of the customer undertaking the V-CIP and date-time stamp. The quality of the live video in the V-CIP shall be adequate to allow identification of the customer beyond doubt. v) The application shall have components with face liveness / spoof detection as well as face matching technology with high degree of accuracy, even though the ultimate responsibility of any customer identification rests with the RE. 60 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 28 Appropriate artificial intelligence (AI) technology can be used to ensure that the V-CIP is robust. vi) Based on experience of detected / attempted / 'near-miss' cases of forged identity, the technology infrastructure including application software as well as work flows shall be regularly upgraded. Any detected case of forged identity through V-CIP shall be reported as a cyber event under extant regulatory guidelines. vii) 61The V-CIP infrastructure shall undergo necessary tests such as Vulnerability Assessment, Penetration testing and a Security Audit to ensure its robustness and end-to-end encryption capabilities. Any critical gap reported u....
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....ollowing: a) OTP based Aadhaar e-KYC authentication b) Offline Verification of Aadhaar for identification c) KYC records downloaded from CKYCR, in accordance with paragraph 56, using the KYC identifier provided by the customer d) Equivalent e-document of Officially Valid Documents (OVDs) including documents issued through DigiLocker RE shall ensure to redact or blackout the Aadhaar number in terms of paragraph 16. 63 In case of offline verification of Aadhaar using XML file or Aadhaar Secure QR Code, it shall be ensured that the XML file or QR code generation date is not older than three working days from the date of carrying out V-CIP. 64Further, in line with the prescribed period of three working days for usage of Aadhaar XML file / Aadhaar QR code, REs shall ensure that the video process of the V-CIP is undertaken within three working days of downloading / obtaining the identification information through CKYCR / Aadhaar authentication / equivalent e-document, if in the rare cases, the entire process cannot be completed at one go or seamlessly. However, REs shall ensure that no incremental risk is added due to this. 63 Amended vide circular DOR.AML.REC.111....
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....22. Deleted 23. 68Notwithstanding anything contained in paragraph 16 and as an alternative thereto, in case an individual who desires to open a bank account, banks shall open a 'Small Account', which entails the following limitations: i. the aggregate of all credits in a financial year does not exceed rupees one lakh; ii. the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and iii. the balance at any point of time does not exceed rupees fifty thousand. 69Provided, that this limit on balance shall not be considered while making deposits through Government grants, welfare benefits and payment against procurements. Further, small accounts are subject to the following conditions: (a) The bank shall obtain a self-attested photograph from the customer. (b) The designated officer of the bank certifies under his signature that the person opening the account has affixed his signature or thumb impression in his presence. 70Provided that where the individual is a prisoner in a jail, the signature or thumb print shall be affixed in presence of the officer in-charge of the jail and the said officer shall certify the same u....
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.... Solution (CBS) linked branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to the account. (d) Banks shall ensure that the stipulated monthly and annual limits on aggregate of transactions and balance requirements in such accounts are not breached, before a transaction is allowed to take place. (e) The account shall remain operational initially for a period of twelve months which can be extended for a further period of twelve months, provided the account holder applies and furnishes evidence of having applied for any of the OVDs during the first twelve months of the opening of the said account. (f) The entire relaxation provisions shall be reviewed after twenty-four months. (g) 71Notwithstanding anything contained in clauses (e) and (f) above, the small account shall remain operational between April 1, 2020 and June 30, 2020 and such other periods as may be notified by the Central Government. (h) 72The account shall be monitored and when there is suspicion of money laundering or financing of terrorism activities or other high-risk scenarios, the identity of the customer shall be established as per para....
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....he RE shall be valid for transfer of the account to any other branch/office of the same RE, provided full KYC verification has already been done for the concerned account and the same is not due for periodic updation. Part II - CDD Measures for Sole Proprietary firms 27.79For opening an account in the name of a sole proprietary firm, CDD of the individual (proprietor) shall be carried out. 28. 80In addition to the above, any two of the following documents or the equivalent e- documents there of as a proof of business/ activity in the name of the proprietary firm shall also be obtained: (a) 81Registration certificate including Udyam Registration Certificate (URC) issued by the Government 76 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 77 Deleted vide amendment dated April 20, 2018 and shifted to paragraph 10. Deleted/shifted portion read as: "If an existing KYC compliant customer of a RE desires to open another account with the same RE, there shall be no need for a fresh CDD exercise." 78 Amended vide Gazette Notification G.S.R. 538(E) regarding PML Second amendment Rules dated June 1, 2017. Deleted portion of paragraph 26 is as fo....
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....nts, as specified in paragraph 16, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on the company's behalf (f) 86the names of the relevant persons holding senior management position; and (g) 87the registered office and the principal place of its business, if it is different. 31. 88For opening an account of a partnership firm, the certified copies of each of the following documents or the equivalent e-documents thereof shall be obtained: (a) Registration certificate (b) Partnership deed (c) 89Permanent Account Number of the partnership firm (d) 90Documents, as specified in paragraph 16, relating to beneficial owner, managers, officers or employees, as the case may be, holding an attorney to transact on its behalf (e) 91the names of all the partners and (f) 92address of the registered office, and the principal place of its business, if it is different. 32. 93For opening an account of a trust, certified copies of each of the following documents or the equivalent e-documents thereof shall be obtained: (a) Registration certificate (b) Trust deed (c) 94Permanent Account Number or....
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....s shall be included under the term 'unincorporated association'. Explanation: Term 'body of individuals' includes societies. 33B. 102For opening account of a customer who is a juridical person (not specifically covered in the earlier part) such as societies, universities and local bodies like village panchayats, etc., or who purports to act on behalf of such juridical person or individual or trust, certified copies of the following documents or the equivalent e-documents thereof shall be obtained and verified: (a) Document showing name of the person authorised to act on behalf of the entity (b) Documents, as specified in paragraph 16, of the person holding an attorney to transact on its behalf and (c) Such documents as may be required by the RE to establish the legal existence of such an entity/juridical person. 97 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 98 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 99 Amended vide circular DOR.AML.BC.No.27/14.01.001/2019-20 dated January 9, 2020. 100 Inserted vide circular DBR.AML.BC.No.39/14.01.001/2018-19 dated May 29, 2019. 10 Amended vide c....
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....r, which have no apparent economic rationale or legitimate purpose. (b) Transactions which exceed the thresholds prescribed for specific categories of accounts. (c) High account turnover inconsistent with the size of the balance maintained. (d) Deposit of third-party cheques, drafts, etc. in the existing and newly opened accounts followed by cash withdrawals for large amounts. 106For ongoing due diligence, REs may consider adopting appropriate innovations including artificial intelligence and machine learning (AI & ML) technologies to support effective monitoring. 37. The extent of monitoring shall be aligned with the risk category of the customer. (a) A system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months, and the need for applying enhanced due diligence measures shall be put in place. (b) The transactions in accounts of marketing firms, especially accounts of Multi-level Marketing (MLM) Companies shall be closely monitored. Explanation: High risk accounts have to be subjected to more intensified monitoring. Explanation: Cases where a large number of cheque books are sought by the company a....
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....uirement, however, shall be clearly specified by the REs in their internal KYC policy duly approved by the Board of Directors of REs or any committee of the Board to which power has been delegated. iii. Accounts of customers, who were minor at the time of opening account, on their becoming major: In case of customers for whom account was opened when they were minor, fresh photographs shall be obtained on their becoming a major and at that time it shall be ensured that CDD documents as per the current CDD standards are available with the REs. Wherever required, REs may carry out fresh KYC of such customers i.e., customers for whom account was opened when they were minor, on their becoming a major. 108 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 109 Inserted vide circular DOR.AML.REC. 49/14.01.001/2024-25 dated November 6, 2024. 40 iv. 110Aadhaar OTP based e-KYC in non-face to face mode may be used for 111updation/ periodic updation. To clarify, conditions stipulated in paragraph 17 are not applicable in case of updationl periodic updation of KYC through Aadhaar OTP based e-KYC in non-face to face mode. Declaration of current address,....
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....on of KYC are promptly updated in the records / database of the REs and an intimation, mentioning the date of updation of KYC details, is provided to the customer. iv. In order to ensure customer convenience, REs may consider making available the facility of 115updation/ periodic updation of KYC at any branch, in terms of their internal KYC policy duly approved by the Board of Directors of REs or any committee of the Board to which power has been delegated. v. REs shall adopt a risk-based approach with respect to periodic updation of KYC. Any additional and exceptional measures, which otherwise are not mandated under the above instructions, adopted by the REs such as requirement of obtaining recent photograph, requirement of physical presence of the customer, requirement of periodic updation of KYC only in the branch of the RE where account is maintained, a more frequent periodicity of KYC updation than the minimum specified periodicity etc., shall be clearly specified in the internal KYC policy duly approved by the Board of Directors of REs or any committee of the Board to which power has been delegated. d) 116REs shall advise the customers that in order to comply with th....
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....on to that account by the RE till such time the customer complies with the provisions of this paragraph. In case of asset accounts such as loan accounts, for the purpose of ceasing the operation in the account, only credits shall be allowed. Part VI - Enhanced and Simplified Due Diligence Procedure A. Enhanced Due Diligence 40. 118Enhanced Due Diligence (EDD) for non-face-to-face customer onboarding (other than customer onboarding in terms of paragraph 17): Non-face-to-face onboarding facilitates the REs to establish relationship with the customer without meeting the customer physically or through V-CIP. Such non-face-to-face modes for the purpose of this paragraph includes use of digital channels such as CKYCR, DigiLocker, equivalent e-document, etc., and non- digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs. Following EDD measures shall be 118 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 43 undertaken by REs for non-face-to-face customer onboarding (other than customer onboarding in terms of paragraph 17): a) In case RE has introduced the process of V-CIP, ....
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....s shall also be applicable to family members or close associates of PEPs. 120Explanation: For the purpose of this paragraph, "Politically Exposed Persons" (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of States/Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials. 42. Client accounts opened by professional intermediaries: REs shall ensure while opening client accounts through professional intermediaries, that: (a) Clients shall be identified when client account is opened by a professional intermediary on behalf of a single client. (b) REs shall have option to hold 'pooled' accounts managed by professional intermediaries on behalf of entities like mutual funds, pension funds or other types of funds. (c) REs shall not open accounts of such professional intermediaries who are bound by any client confidentiality that prohibits disclosure of the client details to the RE. (d) All the beneficial owners shall be identified where funds held by the intermediaries are not co-....
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....eign Portfolio Investors (FPIs) Accounts of FPIs which are eligible/ registered as per SEBI guidelines, for the purpose of investment under Portfolio Investment Scheme (PIS), shall be opened by accepting KYC documents as detailed in Annex IV, subject to Income Tax (FATCA/CRS) Rules. Provided that banks shall obtain undertaking from FPIs or the Global Custodian acting on behalf of the FPI that as and when required, the exempted documents as detailed in Annex IV will be submitted. 47 Chapter VII Record Management 46. 123The following steps shall be taken regarding maintenance, preservation and reporting of customer information, with reference to provisions of PML Act and Rules. REs shall, (a) maintain all necessary records of transactions between the RE and the customer, both domestic and international, for at least five years from the date of transaction; (b) preserve the records pertaining to the identification of the customers and their addresses obtained while opening the account and during the course of business relationship, for at least five years after the business relationship is ended; (c) 124make available swiftly, the identification records and tra....
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.... to sub rule 3 and 4 of rule 7, Director, FIU-IND shall have powers to issue guidelines to the REs for detecting transactions referred to in various clauses of sub-rule (1) of rule 3, to direct them about the form of furnishing information and to specify the procedure and the manner of furnishing information. 48. The reporting formats and comprehensive reporting format guide, prescribed/ released by FIU-IND and Report Generation Utility and Report Validation Utility developed to assist reporting entities in the preparation of prescribed reports shall be taken note of. The editable electronic utilities to file electronic Cash Transaction Reports (CTR) / Suspicious Transaction Reports (STR) which FIU- IND has placed on its website shall be made use of by REs which are yet to install/adopt suitable technological tools for extracting CTR/STR from their live transaction data. The Principal Officers of those REs, whose all branches are not fully computerized, shall have suitable arrangement to cull out the transaction details from branches which are not yet computerized and to feed the data into an electronic file with the help of the editable electronic utilities of CTR/STR as have b....
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....https://www.un.org/securitycouncil/sanctions/1988/materials REs shall also ensure to refer to the lists as available in the Schedules to the Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007, as amended from time to time. The aforementioned lists, i.e., UNSC Sanctions Lists and lists as available in the Schedules to the Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007, as amended from time to time, shall be verified on daily basis and any modifications to the lists in terms of additions, deletions or other changes shall be taken into account by the REs for meticulous compliance. (b) Details of accounts resembling any of the individuals/entities in the lists shall be reported to FIU-IND apart from advising Ministry of Home Affairs (MHA) as required under UAPA notification dated 128February 2, 2021 (Annex II of this Master Direction). 127 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. Further, earlier paragraphs 51, 52 and 53 have been consolidated in paragraph 51 vide this amendment. 128 Amended vide circular DOR.AML.REC.48/14.01.001/2020-....
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....23-24 dated October 17, 2023. 53 (f) In case there are reasons to believe beyond doubt that funds or assets held by a customer would fall under the purview of clause (a) or (b) of sub-section (2) of section 12A of the WMD Act, 2005, REs shall prevent such individual/entity from conducting financial transactions, under intimation to the CNO by email, FAX and by post, without delay. (g) In case an order to freeze assets under section 12A is received by the REs from the CNO, REs shall, without delay, take necessary action to comply with the Order. (h) The process of unfreezing of funds, etc., shall be observed as per paragraph 7 of the Order. Accordingly, copy of application received from an individual/entity regarding unfreezing shall be forwarded by RE along with full details of the asset frozen, as given by the applicant, to the CNO by email, FAX and by post, within two working days. 53. REs shall verify every day, the 'UNSCR 1718 Sanctions List of Designated Individuals and Entities', as available at https://www.mea.gov.in/Implementation- of-UNSC-Sanctions-DPRK.htm, to take into account any modifications to the list in terms of additions, deletions or other changes ....
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.... Bank/other relevant authorities, on request. 54A. 136REs are encouraged to leverage latest technological innovations and tools for effective implementation of name screening to meet the sanctions requirements. 136 Inserted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 55 Chapter X Other Instructions 55. 137Secrecy Obligations and Sharing of Information: (a) REs shall maintain secrecy regarding the customer information which arises out of the contractual relationship between the RE and customer. (b) Information collected from customers for the purpose of opening of account shall be treated as confidential and details thereof shall not be divulged for the purpose of cross selling, or for any other purpose without the express permission of the customer. (c) While considering the requests for data/information from Government and other agencies, REs shall satisfy themselves that the information being sought is not of such a nature as will violate the provisions of the laws relating to secrecy in the transactions. (d) The exceptions to the said rule shall be as under: i. Where disclosure is under compulsion of law, ii. Where there....
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....pened on or after from April 1, 2017, with CKYCR in terms of the provisions of the Rules ibid. (f) REs shall upload KYC records pertaining to accounts of LEs opened on or after April 1, 2021, with CKYCR in terms of the provisions of the Rules ibid. The KYC records have to be uploaded as per the LE Template released by CERSAI. (g) Once KYC Identifier is generated by CKYCR, REs shall ensure that the same is communicated to the individual/LE as the case may be. (h) In order to ensure that all KYC records are incrementally uploaded on to CKYCR, REs shall upload/update the KYC data pertaining to accounts of individual customers and LEs opened prior to the above-mentioned dates as per clauses (e) and (f), respectively, at the time of periodic updation as specified in paragraph 38 of this Master Direction, or earlier, when the updated KYC information is obtained/received from the customer. 140Also, whenever the RE obtains additional or updated information from any customer as per clause (j) below in this paragraph or Rule 9 (1C) of the PML Rules, the RE shall within seven days or within such period as may be notified by the Central Government, furnish the updated information to C....
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..../14.01.001/2023-24 dated April 28, 2023. 58 (b) Submit online reports by using the digital signature of the 'Designated Director' by either uploading the Form 61B or 'NIL' report, for which, the schema prepared by Central Board of Direct Taxes (CBDT) shall be referred to. Explanation: REs shall refer to the spot reference rates published by Foreign Exchange Dealers' Association of India (FEDAI) on their website at http://www.fedai.org.in/RevaluationRates.aspx for carrying out the due diligence procedure for the purposes of identifying reportable accounts in terms of Rule 114H. (c) Develop Information Technology (IT) framework for carrying out due diligence procedure and for recording and maintaining the same, as provided in Rule 114H. (d) Develop a system of audit for the IT framework and compliance with Rules 114F, 114G and 114H of Income Tax Rules. (e) Constitute a "High Level Monitoring Committee" under the Designated Director or any other equivalent functionary to ensure compliance. (f) Ensure compliance with updated instructions/ rules/ guidance notes/ Press releases/ issued on the subject by Central Board of Direct Taxes (CBDT) from time to time and avail....
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.... of new products and new business practices, including new delivery mechanisms, and the use of new or developing technologies for both new and pre- existing products. Further, REs shall ensure: (a) to undertake the ML/TF risk assessments prior to the launch or use of such products, practices, services, technologies; and (b) adoption of a risk-based approach to manage and mitigate the risks through appropriate EDD measures and transaction monitoring, etc. 144 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 145 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 146 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 60 63. 147 Correspondent Banking Banks shall have a policy approved by their Boards, or by a committee headed by the Chairman/CEO/MD to lay down parameters for approving cross-border correspondent banking and other similar relationships. In addition to performing normal CDD measures, such relationships shall be subject to the following conditions: (a) Banks shall gather sufficient information about a respondent bank to understand fully the nature of the respond....
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....n as mentioned below: a. name of the originator; b. the originator account number where such an account is used to process the transaction; c. the originator's address, or national identity number, or customer identification number, or date and place of birth; d. name of the beneficiary; and e. the beneficiary account number where such an account is used to process the transaction. In the absence of an account, a unique transaction reference number should be included which permits traceability of the transaction. ii. In case of batch transfer, where several individual cross-border wire transfers from a single originator are bundled in a batch file for transmission to beneficiaries, they (i.e., individual transfers) are exempted from the requirements of clause (i) above in respect of originator information, provided that they include the originator's account number or unique transaction reference number, as mentioned above, and the batch file contains required and accurate originator information, and full beneficiary information, that is fully traceable within the beneficiary country. iii. Domestic wire transfer, where the originator is an account holder of t....
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....rson are regulated financial institutions acting on their own behalf. It is, however, clarified that nothing within these instructions will impact the obligation of an RE to comply with applicable reporting requirements under 150 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 63 PML Act, 2002, and the Rules made thereunder, or any other statutory requirement in force. B. Responsibilities of ordering RE, intermediary RE and beneficiary RE, effecting wire transfer, are as under: i. Ordering RE: a. The ordering RE shall ensure that all cross-border and qualifying domestic wire transfers {viz., transactions as per clauses (iii) and (iv) of paragraph 'A' above}, contain required and accurate originator information and required beneficiary information, as indicated above. b. Customer Identification shall be made if a customer, who is not an account holder of the ordering RE, is intentionally structuring domestic wire transfers below rupees fifty thousand to avoid reporting or monitoring. In case of non-cooperation from the customer, efforts shall be made to establish identity and if the same transaction is found to be suspicious, ST....
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....rvices directly or through their agents. REs that control both the ordering and the beneficiary side of a wire transfer shall: a. take into account all the information from both the ordering and beneficiary sides in order to determine whether an STR has to be filed; and b. file an STR with FIU, in accordance with the PML Rules, if a transaction is found to be suspicious. C. Other Obligations i. Obligations in respect of REs' engagement or involvement with unregulated entities in the process of wire transfer REs shall be cognizant of their obligations under these instructions and ensure strict compliance, in respect of engagement or involvement of any unregulated entities in the process of wire transfer. More specifically, whenever there is involvement of any unregulated entities in the process of wire transfers, the concerned REs shall be fully responsible for information, reporting and other requirements and therefore shall ensure, inter alia, that, 151 Amended vide circular DOR.AML.REC.44/14.01.001/2023-24 dated October 17, 2023. 65 i) there is unhindered flow of complete wire transfer information, as mandated under these directions, from and through the u....
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....y with the following aspects for the purpose of these directions: (a) the identity and address of the walk-in customer shall be verified for transactions above rupees fifty thousand as required under paragraph 13(e) of this Direction. (b) 153transaction details of sale of third-party products and related records shall be maintained as prescribed in paragraph 46 of Chapter VII. (c) AML software capable of capturing, generating and analysing alerts for the purpose of filing CTR/STR in respect of transactions relating to third party products with customers including walk-in customers shall be available. (d) transactions involving rupees fifty thousand and above shall be undertaken only by: . debit to customers' account or against cheques; and · obtaining and verifying the PAN given by the account-based as well as walk-in customers. (e) Instruction at 'd' above shall also apply to sale of REs' own products, payment of dues of credit cards/sale and reloading of prepaid/travel cards and any other product for rupees fifty thousand and above. 68. At-par cheque facility availed by co-operative banks (a) The 'at par' cheque facility offered by commercial banks t....
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....equately trained in KYC/AML/CFT policy. The focus 154 Amended vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 68 of the training shall be different for frontline staff, compliance staff and staff dealing with new customers. The front desk staff shall be specially trained to handle issues arising from lack of customer education. Proper staffing of the audit function with persons adequately trained and well-versed in KYC/AML/CFT policies of the RE, regulation and related issues shall be ensured. 71. 155Deleted Chapter XI Repeal Provisions 72. With the issue of these directions, the instructions / guidelines contained in the circulars mentioned in the Appendix, issued by the Reserve Bank stand repealed. 73. All approvals / acknowledgements given under the above circulars shall be deemed as given under these directions. 74. All the repealed circulars are deemed to have been in force prior to the coming into effect of these directions. 155 Deleted vide circular DOR.AML.REC.111/14.01.001/2023-24 dated April 28, 2023. 69 Annex I Digital KYC Process A. The RE shall develop an application for digital KYC process which shall be ....
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.... code is available, the details like name, gender, date of birth and address can be auto-populated by scanning the QR available on Aadhaar/e-Aadhaar. I. Once the above mentioned process is completed, a One Time Password (OTP) message containing the text that 'Please verify the details filled in form before sharing OTP' shall be sent to customer's own mobile number. Upon successful validation of the OTP, it will be treated as customer signature on CAF. However, if the customer does not have his/her own mobile number, then mobile number of his/her family/relatives/known persons may be used for this purpose and be clearly mentioned in CAF. In any case, the mobile number of authorized officer registered with the RE shall not be used for customer signature. The RE must check that the mobile number used in customer signature shall not be the mobile number of the authorized officer. J. The authorized officer shall provide a declaration about the capturing of the live photograph of customer and the original document. For this purpose, the authorized official shall be verified with One Time Password (OTP) which will be sent to his mobile number registered with the RE. Upon successful ....
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....the individuals or entities listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism; c) prevent the entry into or the transit through India of individuals listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism". The Unlawful Activities (Prevention) Act, 1967 defines "Order" as under: - "Order" means the Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007, as may be amended from time to time. 2. In order to ensure expeditious and effective implementation of the provisions of Section 51A, a revised procedure is outlined below in supersession of earlier orders and guidelines on the subject: 3. Appointment and communication details of the UAPA Nodal Officers: 3.1 The Joint Secretary (CTCR), Ministry of Home Affairs would be the Central [designated] Nodal Officer for the UAPA [Telephone Number: 011-23093124, 011- 230923465 (Fax), email address: [email protected]]. 3.2 The Ministry of External Affairs, Department of Economic Affairs, Ministry of 73 Corporate Affairs, Foreigners Division of MHA, FIU-IND, Central ....
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....orities and security agencies without delay. 4.5 The Regulators of the real estate agents, dealers in precious metals & stones (DPMS) and DNFBPs shall forward the list of designated persons as mentioned in Para 4(i) above, to the real estate agents, dealers in precious metals & stones (DPMS) and DNFBPs without delay. 5. Regarding funds, financial assets or economic resources or related services held in the form of bank accounts, stocks or Insurance policies etc. 74 5.1 The Financial Regulators will issue necessary guidelines to banks, stock exchanges/depositories, intermediaries regulated by the SEBI and insurance companies requiring them - (i) To maintain updated designated lists in electronic form and run a check on the given parameters on a daily basis to verify whether individuals or entities listed in the Schedule to the Order, hereinafter, referred to as designated individuals/entities are holding any funds, financial assets or economic resources or related services held in the form of bank accounts, stocks, Insurance policies etc., with them. (ii) In case, the particulars of any of their customers match with the particulars of designated individuals/entitie....
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....verification would be completed expeditiously from the date of receipt of such particulars. 5.3 In case, the results of the verification indicate that the properties are owned by or are held for the benefit of the designated individuals/entities, an orders to freeze these assets under Section 51A of the UAPA would be issued by the Central 75 [designated] nodal officer for the UAPA without delay and conveyed electronically to the concerned bank branch, depository and insurance company under intimation to respective Regulators and FIU-IND. The Central [designated] nodal officer for the UAPA shall also forward a copy thereof to all the Principal Secretaries/Secretaries, Home Department of the States/UTs and all UAPA nodal officers in the country, so that any individual or entity may be prohibited from making any funds, financial assets or economic resources or related services available for the benefit of the designated individuals/ entities or any other person engaged in or suspected to be engaged in terrorism. The Central [designated] Nodal Officer for the UAPA shall also forward a copy of the order to all Directors General of Police/ Commissioners of Police of all States/U....
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....to the concerned Registrar performing the work of registering immovable properties and to FIU-IND under intimation to the concerned UAPA Nodal Officer of the State/UT. 76 The order shall be issued without prior notice to the designated individual/entity. 6.6 Further, the UAPA Nodal Officer of the State/UT shall cause to monitor the transactions/ accounts of the designated individual/entity so as to prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism. The UAPA Nodal Officer of the State/UT shall, upon becoming aware of any transactions and attempts by third party immediately bring to the notice of the DGP/Commissioner of Police of the State/UT for initiating action under the provisions of the Unlawful Activities (Prevention) Act, 1967. 7. Regarding the real-estate agents, dealers of precious metals/stones (DPMS) and other Designated Non-Financial Businesses and Professions (DNFBPs) and any other person: (i) The Designated Non-Financial Business....
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....(iv) The UAPA Nodal Officer of the State/UT shall also advise appropriate department of the State/UT, administering the operations relating to Casinos, to ensure that the designated individuals/ entities should not be allowed to own or have beneficial ownership in any Casino operation. Further, if any designated individual/ entity visits or participates in any game in the Casino and/ or if any assets of such designated individual/ entity is with the Casino operator, and of the particulars of any client matches with the particulars of designated individuals/ entities, the Casino owner shall inform the UAPA Nodal Officer of the State/UT without delay, who shall in turn follow the procedure laid down in paragraph 6.2 to 6.5 above. (v) The Ministry of Corporate Affairs shall issue an appropriate order to the Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India and Institute of Company Secretaries of India (ICSI) requesting them to sensitize their respective members to the provisions of Section 51A of UAPA, so that if any designated individual/entity approaches them, for entering/ investing in the financial sector and/or immovable property, or....
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....eficial owner of such company or firm and in case such a request received the ROC should inform the UAPA Nodal Officer in the Ministry 78 of Corporate Affairs who in turn shall follow the similar procedure as laid down in paragraph 6.2 to 6.5 above. (ix) Any person, either directly or indirectly, holding any funds or other assets of designated individuals or entities, shall, without delay and without prior notice, cause to freeze any transaction in relation to such funds or assets, by immediately informing the nearest Police Station, which shall, in turn, inform the concerned UAPA Nodal Officer of the State/UT along with the details of the funds/assets held. The concerned UAPA Nodal Officer of the State/UT, would follow the same procedure as in para 6.2 to 6.6 above. 8. Regarding implementation of requests received from foreign countries under U.N. Security Council Resolution 1373 of 2001: 8.1 The U.N. Security Council Resolution No. 1373 of 2001 obligates countries to freeze without delay the funds or other assets of persons who commit, or attempt to commit, terrorist acts or participate in or facilitate the commission of terrorist acts; of entities owned or control....
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....ility charges, or exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services or fees or service charges for routine holding or maintenance of frozen funds or other financial assets or economic resources, after notification by the MEA of the intention to authorize, where appropriate, access to such funds, assets or resources and in the absence of a negative decision within 48 hours of such notification; (b) necessary for extraordinary expenses, provided that such determination has been notified by the MEA; 10.2. The addition may be allowed to accounts of the designated individuals/ entities subject to the provisions of paragraph 10 of: (a) interest or other earnings due on those accounts, or (b) payments due under contracts, agreements or obligations that arose prior to the date on which those accounts became subject to the provisions of resolutions 1267 (1999), 1333 (2000), or 1390 (2002), Provided that any such interest, other earnings and payments continue to be subject to those provisions; 10.3 (a): The designated individual or organization may submit a request to the Central [D....
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....uch applicant, under intimation to the concerned bank, stock exchanges/depositories, intermediaries regulated by SEBI, insurance company, Registrar of Immovable Properties, ROC, Regulators of DNFBPs and the UAPA Nodal Officer of State/UT. However, if it is not possible for any reason to pass an Order unfreezing the assets within 5 working days, the Central [designated] Nodal Officer for the UAPA shall inform the applicant expeditiously. 11A. Regarding procedure for unfreezing of funds, financial assets or economic resources or related services of individuals/organisations in the event of delisting by the UNSCR 1267 (1999), 1988 (2011) and 1989 (2011) Committee Upon making an application in writing by the concerned individual/organisation, to the concerned bank, stock exchanges/depositories, intermediaries regulated by SEBI, insurance companies, Registrar of Immovable Properties, RoC, Regulators of DNFBPs, Department of Posts and the UAPA Nodal Officers of all States/UTs., who in turn shall forward the application along with the full details of the assets frozen to the Central [Designated] Nodal Officer for UAPA within two working days. The Central [Designated] Nodal Officer f....
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....rars performing the work of registering immovable properties through the UAPA Nodal Officer of the State/UT. 15. All concerned are requested to ensure strict compliance of this order. (Ashutosh Agnihotri) Joint Secretary to the Government of India To, 1) Governor, Reserve Bank of India, Mumbai 2) Chairman, Securities & Exchange Board of India, Mumbai 3) Chairman, Insurance Regulatory and Development Authority, Hyderabad. 4) Foreign Secretary, Ministry of External Affairs, New Delhi. 5) Finance Secretary, Ministry of Finance, New Delhi. 6) Revenue Secretary, Department of Revenue, Ministry of Finance, New Delhi. 7) Secretary, Ministry of Corporate Affairs, New Delhi 8) Chairman, Central Board of Indirect Taxes & Customs, New Delhi. 9) Director, Intelligence Bureau, New Delhi. 10) Additional Secretary, Department of Financial Services, Ministry of Finance, New Delhi. 11) Chief Secretaries of all States/Union Territories 12) Principal Secretary (Home)/Secretary (Home) of all States/ Union Territories 13) Directors General of Police of all States & Union Territories 14) Director General of Police, National Investigation Agency, New Del....
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.... 28, 2023. 83 any such Act, in relation to weapons of mass destruction and their delivery systems. (3) The Central Government may exercise its powers under this section through any authority who has been assigned the power under sub-section (1) of section 7." In order to ensure expeditious and effective implementation of the provisions of Section 12A of the Act, the procedure is outlined below. 1. Appointment and communication details of Section 12A Nodal Officers: 1.1 In exercise of the powers conferred under Section 7(1) of the Act, the Central Government assigns Director, FIU-India, Department of Revenue, Ministry of Finance, as the authority to exercise powers under Section 12A of the Act. The Director, FIU-India shall be hereby referred to as the Central Nodal Officer (CNO) for the purpose of this order. [Telephone Number: 011- 23314458, 011- 23314435, 011- 23314459 (FAX), email address: [email protected]]. 1.2 Regulator under this order shall have the same meaning as defined in Rule 2(fa) of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. Reporting Entity (RE) shall have the same meaning as defined in Section 2 (1) (wa) of Preventio....
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.... immigration authorities and security agencies, without delay. 3. Regarding funds, financial assets or economic resources or related services held in the form of bank accounts, stocks or insurance policies, etc. 3.1 All Financial Institutions shall - i. Verify if the particulars of the entities/individual, party to the financial transactions, match with the particulars of designated list and in case of match, REs shall not carry out such transaction and shall immediately inform the transaction details with full particulars of the funds, financial assets or economic resources involved to the CNO by email, FAX and by post, without delay. ii. Run a check, on the given parameters, at the time of establishing a relation with a customer and on a periodic basis to verify whether individuals and entities in the designated list are holding any funds, financial assets or economic resources or related services, in the form of bank accounts, stocks, Insurance policies etc. In case, the particulars of any of their customers match with the particulars of designated list, REs shall immediately inform full particulars of the funds, financial assets or economic resources or related serv....
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.... entities/individual, party to the transactions, match with the particulars of the designated list, and, in case of match, shall not carry out such transaction and immediately inform the details with full particulars of the assets or economic resources involved to the State Nodal Officer, without delay. ii. Verify from the records in their respective jurisdiction, without delay, on given parameters, if the details match with the details of the individuals and entities in the designated list. In case, the designated individuals/entities are holding financial assets or economic resources of the nature of immovable property, and if any match with the designated individuals/entities is found, the Registrar shall immediately inform the details with full particulars of the assets or economic resources involved to the State Nodal Officer, without delay. iii. In case there are reasons to believe beyond doubt that assets that are held by an individual/entity would fall under the purview of clause (a) or (b) of sub- section (2) of Section 12A, Registrar shall prevent such individual/entity from conducting transactions, under intimation to the State Nodal Officer by email, FAX and by po....
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....es them for sale/purchase of precious metals/stones/Real Estate Assets or attempts to undertake such transactions, the dealer should not carry out such transaction and, without delay, inform the Section 12A Nodal officer in the Central Board of Indirect Taxes and Customs (CBIC). Also, If the dealers hold any assets or funds of the designated individual/entity, they shall freeze the same without delay and inform the Section 12A Nodal officer in the CBIC, who will, in turn, follow procedure similar to as laid down for State Nodal Officer in the paragraphs 4.2 to 4.6. (ii) Registrar of Societies/ Firms/ non-profit organizations are required to ensure that if any designated individual/ entity is a shareholder/ member/ partner/ director/ settler/ trustee/ beneficiary/ beneficial owner of any society/ partnership firm/ trust/ non-profit organization, then the Registrar shall freeze any transaction for such designated individual/ entity and shall inform the State Nodal Officer, without delay, and, if such society/ partnership firm/ trust/ non-profit organization holds funds or assets of designated individual/ entity, follow the procedure as laid down for State Nodal Officer in the para....
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....association or partner in a firm or settler/ trustee or beneficiary of a trust or a beneficial owner of a juridical person, then the member of the institute should not incorporate/ form/ register such juridical person and should convey the complete details of such designated individual/ entity to Section 12A Nodal Officer in the Ministry of Corporate Affairs. (vi) In addition, a member of the ICSI shall, if he/she is Company Secretary or is holding any managerial position where any of designated individual/ entity is a Director and/or Shareholder or having beneficial ownership of any such juridical person, convey the complete details of such designated individual/ entity to Section 12A Nodal Officer in the Ministry of Corporate Affairs, who shall follow the similar procedure as laid down in paragraph 4.2 to 4.6 above for State Nodal Officer, if such company, limited liability firm, partnership firm, society, trust, or association holds funds or assets of the designated individual/entity. (vii) In case any designated individual/ entity is a shareholder/ director/ whole time director in any company registered with the Registrar of Companies (ROC) or beneficial owner of such com....
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....sets that are wholly or jointly owned or controlled, directly or indirectly, by designated persons or entities; and the funds or other assets derived or generated from funds or other assets owned or controlled directly or indirectly by designated persons or entities, as well as funds or other assets of persons and entities acting on behalf of, or at the direction of designated persons or entities. 5.2 No person shall finance any activity related to the 'designated list' referred to in Para 2.1, except in cases where exemption has been granted as per Para 6 of this Order. 5.3. Further, the State Nodal Officer shall cause to monitor the transactions / accounts of the designated individual/entity so as to prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities in the designated list. The State Nodal Officer shall, upon becoming aware of any transactions and attempts by third party, without delay, bring the incidence to the notice of the CNO and the DGP/Commissioner of Police of the State/UT for initiating suitable action. 5.4 Where the CNO has reasons to believ....
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....gnated individual or entity from making any payment due under a contract entered into prior to the listing of such individual or entity, provided that: (i) the CNO has determined that the contract is not related to any of the prohibited goods, services, technologies, or activities, under this Act, or under the United Nations (Security Council) Act, 1947 or any other relevant Act for the time being in force, or by an order issued under any such Act, in relation to weapons of mass destruction and their delivery systems; (ii) the CNO has determined that the payment is not directly or indirectly received by an individual or entity in the designated list under this Order; and (iii) the MEA has submitted prior notification to the UNSC or its Committee, of the intention to make or receive such payments or to authorise, where appropriate, he unfreezing of funds, other financial assets or economic resources for this purpose, ten working days prior to such authorization 7. Regarding procedure for unfreezing of funds, financial assets or economic resources or related services of individuals/entities inadvertently affected by the freezing mechanism upon verification that the indivi....
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.... Section 12A of the Act by the CNO relating to funds, financial assets or economic resources or related services, shall be communicated to all nodal officers in the country. 10. This order is issued in suppression of F.No.P-12011/14/2022-ES Cell-DOR, dated 30th January 2023. 11. All concerned are requested to ensure strict compliance of this order. (Manoj Kumar Singh) Director (HQ) To, 1)Governor, Reserve Bank of India, Mumbai 2)Chairman, Securities & Exchange Board of India, Mumbai 3)Chairman, Insurance Regulatory and Development Authority, Hyderabad. 4)Foreign Secretary, Ministry of External Affairs, New Delhi. 5)Finance Secretary, Ministry of Finance, New Delhi. 91 6)Revenue Secretary, Department of Revenue, Ministry of Finance, New Delhi. 7)Secretary, Ministry of Corporate Affairs, New Delhi 8)Chairman, Central Board of Indirect Taxes & Customs, New Delhi. 9)Director, Intelligence Bureau, New Delhi. 10)Additional Secretary, Department of Financial Services, Ministry of Finance, New Delhi. 11)Chief Secretaries of all States/Union Territories 12)Principal Secretary (Home)/Secretary (Home) of all States/ Union Territories 13)Directors Gene....
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....However, FPIs concerned may submit an undertaking that upon demand by Regulators/Law Enforcement Agencies the relative document/s would be submitted to the bank. @@ FPIs from certain jurisdictions where the practice of passing Board Resolution for the purpose of opening bank accounts etc. is not in vogue, may submit 'Power of Attorney granted to Global Custodian/Local Custodian in lieu of Board Resolution' 94 Category Eligible Foreign Investors I. Government and Government related foreign investors such as Foreign Central Banks, Governmental Agencies, Sovereign Wealth Funds, International/ Multilateral Organizations/ Agencies. II. a) Appropriately regulated broad based funds such as Mutual Funds, Investment Trusts, Insurance /Reinsurance Companies, Other Broad Based Funds etc. b) Appropriately regulated entities such as Banks, Asset Management Companies, Investment Managers/ Advisors, Portfolio Managers etc. c) Broad based funds whose investment manager is appropriately regulated. d) University Funds and Pension Funds. e) University related Endowments already registered with SEBI as FII/Sub Account. III. All other eligible foreign investors investing in India u....
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.... DBOD.AML.BC. No.36/14.01.001/2011-12 September 28, 2011 39. DBOD.AML BC.No.47/14.01.001/2011-12 November 4, 2011 40. DBOD. AML.BC. No.65/14.01.001/2011-12 December 19, 2011 41. DBOD AML BC No. 70/14.01.001/2011-12 December 30, 2011 42. DBOD. AML.BC. No 93/14.01.001/2011-12 April 17, 2012 43. DBOD. AML.BC. No 109/14.01.001/2011-12 June 8, 2012 44. DBOD. AML.BC. No 110/14.01.001/2011-12 June 8, 2012 45. DBOD.AML.BC. No. 39/14.01.001/2012-13 September 7, 2012 46. DBOD.AML.BC. No. 49/14.01.001/2012-13 September 7, 2012 47. DBOD.AML.BC. No. 65/14.01.001/2012-13 December 10, 2012 48. DBOD.AML.BC. No.71/14.01.001/2012-13 January 18, 2013 49. DBOD.AML.BC. No. 78/14.01.001/2012-13 January 29, 2013 50. DBOD.AML.BC. No.87/14.01.001/2012-13 March 28, 2013 97 51. DBOD. AML.BC. No.101/14.01.001/2011-12 May 31, 2013 52. DBOD.AML.BC. No.29/14.01.001/2013-14 July 12, 2013 53. DBOD.AML.BC. No. 34/14.01.001/2013-14 July 23, 2013 54. DBOD.AML.BC.No.44/14.01.001/2013-14 September 2, 2013 55. DBOD.AML.BC.No.45/14.01.001/2013-14 September 2, 2013 56. DBOD. AML.BC. No. 50/14.01.001/2013-14 September 3, 2013 57. DBOD.AML.BC.No.63/14.01.001/2013-1....
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..../2011-12 March 5, 2012 97. UBD.BPD.(PCB).Cir.No.20/14.01.062/2011-12 March 1, 2012 98. UBD.CO.BPD.No. 10/12.05.001/2011-12 November 9, 2011 99. UBD.BPD.PCB.No. 8/12.05.001/2011-12 November 9, 2011 100. UBD.CO.BPD.(PCB).Cir.No.9/14.01.062/2010-11 May 2, 2011 101. UBD.CO.BPD.(PCB).Cir.No.8/14.01.062/2010-11 May 2, 2011 102. UBD.CO.BPD.(PCB).Cir.No.7/14.01.062/2010-11 March 17, 2011 103. UBD.CO.BPD.(PCB)Cir.No.6/14.01.062/2010-11 March 17, 2011 104. UBD.BPD (PCB) No.38/12.05.001/2010-11 March 15, 2011 99 105. UBD.BPD(PCB).No.37/12.05.001/2010-11 February 18, 2011 106. UBD.CO.BPD.No.35/12.05.001/2010-11 January 10, 2011 107. UBD.BPD.(PCB).No.32/12.05.001/2010-11 December 28, 2010 108. UBD.BPD.(PCB).Cir.No.17/14.01.062/2010-11 October 25, 2010 109. UBD.BPD.(PCB).Cir.No.12/12.05.001/2010-11 September 15, 2010 110. UBD.BPD.(PCB)No.11/12.05.001/2010-11 August 25, 2010 111. UBD.BPD.(PCB).No.10/12.05.001/2010-11 August 23, 2010 112. UBD.BPD.(PCB).No.9/12.05.001/2010-11 August 23, 2010 113. UBD.BPD.(PCB).Cir.No.7/14.01.062/2010-11 August 12, 2010 114. UBD.BPD(PCB).Cir.No.71/12.05.001/2009-10 June 15, 2010 115. UBD.BPD.CO.53/14.01.062....
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.... 15, 2012 152. RPCD.CO.RRB.RCB.AML.BC.No.29/03.05.33(E)/2012- 13 September 18, 2012 153. RPCD.CO.RRB.RCB.AML.BC.No.82/03.05.33(E)/2011- 12 June 11, 2012 154. RPCD.CO.RRB.RCB.AML.BC.No.81/07.40.00/2011-12 June 11, 2012 155. RPCD.CO.RRB.RCB.AML.BC.No.70/07.40.00/2011-12 April 18, 2012 156. RPCD.CO.RCB.AML.BC.No.52/07.40.00/2011-12 January 4, 2012 157. RPCD.CO.RRB.AML.BC.No.51/03.05.33(E)/2011-12 January 2, 2012 158. RPCD.CO.RCB.AML.BC.No.50/07.40.00/2011-12 December 30, 2011 101 159. RPCD.CO.RRB.AML.BC.No.46/03.05.33(E)/2011-12 December 21, 2011 160. RPCD.CO.RRB.AML.BC.NO.31/03.05.33(E)/2011-12 November 16, 2011 161. RPCD.CO.RCB.AML.BC.No.23/07.40.00/2011-12 October 17, 2011 162. RPCD.CO.RRB.AML.BC.No.21/03.05.33(E)/2011-12 October 13,2011 163. RPCD.CO.RRB.AML.BC.No.15/03.05.33(E)/2011-12 August 8, 2011 164. RPCD.CO.RCB.AML.BC.No.63/07.40.00/2010-11 April 26, 2011 165. RPCD.CO.RCB.AML.BC.No.50/07.40.00/2010-11 February 2, 2011 166. RPCD.CO.RRB.AML.BC.No.46/03.05.33(E)/2010-11 January 12, 2011 167. RPCD.CO.RCB.AML.BC.No.39/07.40.00/2010-11 December 27, 2010 168. RPCD.CO.RRB.AML.BC.No.40/03.05.33(E)/2010-11 December 24, 2010 169.....
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..../03.10.42/2009-10 December 2, 2009 207. DNBS. (PD) CC No 192/03.10.42/2010-11 August 9, 2010 208. DNBS. (PD) CC No 193/03.10.42/2010-11 August 9, 2011 209. DNBS (PD).CC. No 201/03.10.42/2010-11 September 22,2010 210. DNBS (PD).CC. No 202/03.10.42/2010-11 October 4, 2010 211. DNBS(PD).CC.No 209/03.10.42/2010-11 January 28, 2011 212. DNBS(PD).CC.No 210/03.10.42/2010-11 February 14, 2011 103 213. DNBS.(PD)CC No 212/03.10.42/2010-11 March 8, 2011 214. DNBS(PD).CC. No. 216/03.10.42/2010-11 May 2, 2011 215. DNBS(PD).CC.No 218/03.10.42/2010-11 May 4, 2011 216. DNBS.(PD)CC No 215/03.10.42/2010-11 April 5, 2011 217. DNBS (PD).CC. No 242/03.10.42/2011-12 September 15, 2011 218. DNBS (PD).CC. No 244/03.10.42/2011-12 September 22, 2011 219. DNBS (PD).CC. No 251/03.10.42/2011-12 December 26, 2011 220. DNBS (PD).CC. No 257/03.10.42/2011-12 March 14, 2012 221. DNBS (PD).CC. No 264/03.10.42/2011-12 March 21, 2012 222. DNBS(PD).CC. No.270/03.10.42/2011-12 April 4, 2012 223. DNBS (PD).CC. No 275/03.10.42/2011-12 May 29, 2012 224. DNBS (PD).CC. No 294/03.10.42/2012-13 July 5, 2012 225. DNBS (PD).CC. No 295/03.10.42/2012-13 July 11, 2012 2....