Master Circular on KYC Guidelines and AML Standards
The Reserve Bank of India (RBI) has issued a master circular on ‘Know Your Customer’ (KYC) guidelines and Anti-Money Laundering (AML) standards for Non-Banking Financial Companies (NBFCs).
The circular outlines the obligations of NBFCs under the Prevention of Money Laundering Act, 2002, and the rules notified thereunder.
Key Provisions
The circular covers various aspects of KYC guidelines, including:
General Guidelines: NBFCs must adhere to KYC guidelines, conduct due diligence on customers, and maintain customer records.
Definitions: The circular defines key terms, including ‘customer’, ‘beneficial owner’, and ‘politically exposed person’.
Guidelines for NBFCs and Authorized Persons: NBFCs and their authorized persons, including brokers and agents, must follow KYC guidelines, conduct due diligence, and maintain customer records.
Customer Identification: NBFCs must identify customers through various documents, including:
Acceptable Documents: The circular lists acceptable documents for customer identification, including:
- Letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address, and Aadhaar number.
- Allocation of Universal Account Number (UAN) by the Employees’ Provident Fund Organisation (EPFO).
The circular aims to prevent money laundering and terrorist financing by ensuring that NBFCs have a robust KYC framework in place.
Chat with the Master Circular: