Master Circular on KYC, AML, CFT, and PMLA Obligations
This master circular consolidates previous instructions on Know Your Customer (KYC) norms, Anti-Money Laundering (AML) standards, Combating of Financing of Terrorism (CFT), and obligations of banks under the Prevention of Money Laundering Act (PMLA), 2002.
Key Provisions:
1. Customer Definition: A customer is defined as a person or entity that maintains an account or has a business relationship with the bank.
2. Guidelines:
2.1 General: Banks must have a KYC policy, Customer Acceptance Policy (CAP), and Customer Identification Procedure (CIP) in place.
2.2 KYC Policy: The policy must ensure that banks know their customers and verify their identities.
2.3 Customer Acceptance Policy (CAP): The policy must outline the criteria for accepting customers.
2.4 Customer Identification Procedure (CIP): The procedure must verify customer identities using reliable documents and data.
2.4.1 Aadhaar Letter: Banks can accept Aadhaar letters as KYC documents.
2.4.2 NREGA Job Card: Banks can accept NREGA Job Cards as KYC documents for normal accounts.
2.4.3 Introduction not Mandatory: Introduction is not mandatory for opening accounts.
This master circular aims to prevent money laundering, terrorist financing, and other illegal activities by ensuring that banks have robust KYC, AML, and CFT measures in place.
Chat with the Master Circular: