Obligation of NBFCs under Prevention of Money laundering Act, 2002 - Client Due Diligence measures - ಆರ್ಬಿಐ - Reserve Bank of India
Obligation of NBFCs under Prevention of Money laundering Act, 2002 - Client Due Diligence measures
RBI/2014-15/383 January 2, 2015 All NBFCs Dear Sirs, Know your Customer (KYC) Norms/Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT)/ Obligation of NBFCs under Prevention of Money laundering Act (PMLA), 2002 - Client Due Diligence measures Please refer to our Master Circular DNBS(PD) CC.No.387/03.10.42/ 2014-15 July 1, 2014, as per which NBFCs are required to undertake ‘Client Due Diligence’ and apply such measures to existing clients based on risk categorisation. The periodicity of such updation should not be less than once in five years in the case of low risk category customers and not less than once in two years in case of high and medium risk categories. 2. The issue has been reviewed in the light of practical difficulties/constraints expressed in obtaining/submitting fresh KYC documents at frequent intervals as the relative documents submitted earlier specially by low-risk customers have remained unchanged in most of the accounts. Accordingly, it has been decided to amend the instructions as under:
3. Further NBFCs (i) need not seek fresh proofs of identity and address at the time of periodic updation, from those customers who are categorised as ‘low risk’, in case of no change in status with respect to their identities and addresses. A self-certification by the customer to that effect should suffice in such cases. In case of change of address of such ‘low risk’ customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. (ii) If an existing KYC compliant customer of NBFC desires to open another account in the same NBFC, there should be no need for submission of fresh proof of identity and/or proof of address for the purpose. 4. NBFCs may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same. Yours faithfully, (Sindhu Pancholy) |