Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2019.

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....tion (2) of section 73", the words, figure and letters "section 73 read with section 11A and section 12AA" shall be substituted. 3. In the principal rules, in rule 2, in sub-rule (1),- (i) the clauses (aa), (aaa), (aab), (aae), (aaf), (ca), (cb), (cc), (cd), (faa) and clause (fb) shall be re-numbered as clauses (ac), (aa), (ab), (ca), (i), (cc), (cd), (ce), (cf), (fb) and clause (fc) respectively; (ii) after clause (bb), the following clauses shall be inserted, namely: '(bba) "digitial KYC" means the capturing live photo of the client 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 reporting entity as per the provisions contained in the Act; (bc) "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);'; (iii) after clause (ca), the following clause shall be inserted namely; '(cb) "equivalent e-document" means an electronic eq....

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....d in sub-rule (4)", the words, "and as an alternative thereto", shall be inserted; (b) in clause (iv), for the words, brackets and figures "through the production of officially valid documents, as referred to in sub-rule (4) and Permanent Account Number or Form No.60, as the case may be,", the words, brackets and figure "as per the provisions of sub-rule (4)" shall be substituted; (c) for clause (v), the following clause shall be substituted, namely:- "(v) the foreign remittance shall not be allowed to be credited into the small account unless the identity of the client is fully established as per provision of sub-rule (4):"; (iii) in sub-rule (6),- (a) after the words "following documents", the words "or the equivalent e-documents thereof", shall be inserted; (b) in clause (iv), after the word "behalf;", the word "and", shall be inserted; (c) for clause (v), the following clause shall be substituted, namely:- "(v) such documents as are required for an individual under sub-rule (4) relating to beneficial owner, managers, officers or employees, as the case may be, holding an attorney to transact on the company&#....

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.... (a) of sub-rule (4) to the banking company or a reporting entity notified under first proviso to sub-section (1) of section 11A, such banking company or reporting entity shall carry out authentication of the client's Aadhaar number using e-KYC authentication facility provided by the Unique Identification Authority of India; (b) proof of possession of Aadhaar under clause (aa) of sub-rule (4) where offline verification can be carried out, the reporting entity shall carry out offline verification; (c) an equivalent e-document of any officially valid document, the reporting entity shall verify the digital signature as per the provisions of the Information Technology Act, 2000 (21 of 2000) and any rules issues thereunder and take a live photo as specified under Annexure 1. (d) any officially valid document or proof of possession of Aadhaar number under clause (ab) of sub-rule (4) where offline verification cannot be carried out, the reporting entity shall carry out verification through digital KYC as specified under Annexure 1: Provided that for a period not beyond such date as may be notified for a class of reporting entity, instead of carrying....

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....eporting Entity or vice-versa. The original Officially Valid Document (OVD) shall be in possession of the client. D. The Reporting Entity must ensure that the Live photograph of the client is taken by the authorized officer and the same photograph is embedded in the Customer Application Form (CAF). Further, the system Application of the Reporting Entity shall put a water-mark in readable form having CAF number, GPS coordinates, authorized official's name, unique employee Code (assigned by Reporting Entities) and Date (DD:MM:YYYY) and time stamp (HH:MM:SS) on the captured live photograph of the client. E. The Application of the Reporting Entities shall have the feature that only live photograph of the client is captured and no printed or video-graphed photograph of the client is captured. The background behind the client while capturing live photograph should be of white colour and no other person shall come into the frame while capturing the live photograph of the client. F. Similarly, the live photograph of the original officially valid document or proof of possession of Aadhaar where offline verification cannot be carried out (placed horizontally), shal....