Master Direction – Know Your Customer (KYC) Direction, 2016
This Master Direction outlines the Know Your Customer (KYC) norms for Regulated Entities (REs) to prevent money laundering and terrorist financing.
Applicability: This direction applies to all REs, including banks, financial institutions, and other entities regulated by the Reserve Bank of India.
Definitions: The direction defines various terms, including “customer,” which includes companies, partnership firms, unincorporated associations or bodies of individuals, and trusts.
Risk Assessment: REs must assess the money laundering and terrorist financing risk associated with their customers, products, and services.
Designated Director and Principal Officer: REs must appoint a Designated Director and a Principal Officer to ensure compliance with KYC norms.
Compliance: REs must have a KYC policy in place and ensure its compliance.
This direction is updated periodically to incorporate changes and amendments.
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Download: Master Direction – Know Your Customer (KYC) Direction, 2016 (Updated as on January 04, 2024)