Know your customer kyc is the process by which companies verify the identity and financial conditions of customers before doing business with them. Kyc is an acronym for know your customer, a term used for customer identification process. Pdf customer satisfaction meaning and methods of measuring. The following page illustrates the customer window for you.
The reason why proper kyc norms can help is that if a particular customer or entity is in the red list or the black list being monitored, they can help spot and track transactions made by these entities. Know your customer normsantimoney laundering standardscombating financing of terrorism unique customer identification code for banks customers in india jul 07, 20. Let us explore some of the key controls surrounding cdd that ia. Know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism primary urban cooperative banks ucbs have been advised vide our circular ubd. Therefore, it is necessary that the know your customer procedures established by the institution allow for the collection of suf. Guidelines on know your customer norms and cash transactions first circular on kyc. Annexurealist of kyc documents required for opening of accounts. This whole methodology can illustrate very quickly and clearly why your customer is satisfied or not satisfied depending on the answers received for each quadrant. List of approved kyc rules internal revenue service. Failure would attract levy of penalty and if penalty has been levied the same is to be disclosed in the notes to accounts. As mandated by rbi, rekyc of all nri accounts needs to be done once in every. Call ahead and ask if anyone in the home is sick or quarantined.
Policy guidelines on know your customer norms and anti money laundering measures purpose this policy document gives an overview on the standards issued by the reserve bank of india rbi on the know your customer and anti money laundering for non. February 27, 2008 on know your customer kyc norms antimoney laundering aml standardscombating of financing of terrorism cft. Customer due diligenceknow your customer kyc norms 2. Jul 10, 2017 the question contains an ambiguity that is who is conducting the kyc research. In paragraph 5 b of the above circular, it has been advised to rrbs that as and when lists of individuals and entities, approved by security council committee. Technical knowledge the individual on the job needs to know and understand. Individual customers, bank will obtain the customers identity. Read this article to know all about kyc documents, kyc process, kyc benefits, kyc. Know your customer or kyc norms is a process by which banks get information about. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer s business, reasonableness of operations in the account in relation to the customer s business, etc which in turn helps the banks to manage their risks prudently. The importance of kyc know your customer norms and. Rbi 2012 388 rpcd rrb rcb bc no 59 07 51 018 2012 january 22 20 the chairmen ceos of all regional rural banks state and central co operative banks dear.
The company shall prepare a profile for each new customer based on risk categorisation. Importance of kyc kyc is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information. In light of the above, we have developed a know your customer kyc quick reference guide which provides quick and easy access to global aml and kyc information, to assist firms operating internationally in mitigating their risk. Do i have to furnish kyc documents for each account i open in a bank even though i have furnished the documents of proof of identity and address. Know your customer normsaml standardscombating financing of terrorism obligation of banks under pmla, 2002. Apr 27, 2015 another issue banks are dealing with today is kycc, or know your customer s correspondent. The term can also refer to the bank regulations and antimoney laundering regulations that govern these activities. This means that proper identification of customers lead to better compliance and better monitoring. Rbi seeks public comments on depositor education and awareness fund scheme jan 21, 2014.
The customer profile may contain information relating to customers identity, socialfinancial status, nature of business activity, information about his clients business and their location etc. When looking at the correspondent banking partners they work with, citi looks at a section of the year or a number of months of activity to see what the flows are between that bank and others. Nonindividuals corporate entity company name registration no postal address physical address email address country of incorporation website brief description of business contact person title names surname date national id of birth passport no nationality capacity position. Know your customer kyc norms antimoney laundering aml. Jan 02, 2020 a qi applicant that is a bank or a broker should verify that the know your customer rules that have been submitted cover all the rules applicable to that applicant. Rbi201415122 know your customer kyc norms antimoney. Customer identification means identifying the customer and verifying hisher identity by using reliable, independent source documents, data or information. Dec 04, 20 kyc know your customer slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The purpose of kycamlcft policy is to put in place customer. You can also download this article as pdf for future reference. Know your customer guidelines the corporation shall assist and cause the customer to comply with the know your customer kyc norms and anti money laundering aml policy or any other statutory requirements, by providing. To expand on dave cranes answer it is the legal requirement that a financial institution know and u. Fundamental kyc requirements, regulators views on the. With effect from 1st january, 2011, kyc know your customer norms are mandatory for all investors for making investments in mutual funds, irrespective of the amount of investment.
Please rollover map to select your region then click to select country of choice antimoney laundering recordbreaking fines issued by regulators worldwide, notably in the us and uk, dominated the financial services landscape in 2012. Icici banks kyc procedure specifies certain commonly available documents as. Fundamental kyc requirements, regulators views on the use of the. Know your customer what is kyc, its requirements and benefits. This program is a product of the agencys small business training network and is championed by the office of entrepreneurial development. A qi applicant that is a bank or a broker should verify that the knowyourcustomer rules that have been submitted cover all the rules applicable to that applicant. Sep 17, 2014 in order to address these issues, create public awareness and give wide publicity to these kyc simplification measures, reserve bank has issued a press release together with a poster and a booklet comprising a few common questions relating to know your customer kyc norms for opening bank accounts. The term is also used to refer to the bank regulations and antimoney laundering. In light of the above, we have developed a know your customer kyc quick reference guide which provides quick and easy access to global aml and kyc information, to assist firms operating. Sep 17, 20 know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism cftobligation of banks under prevention of money laundering act pmla, 2002 ekyc service of uidai recognising online aadhaar authentication electronic verification process to be accepted as an officially valid document under pml rules. Know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism cftobligation of banks under prevention of money laundering act pmla, 2002 ekyc service of uidai recognising online aadhaar authentication electronic verification process to be accepted as an officially valid document under pml rules.
For more information, you may contact kyc coordinator, ernest leonardini, qi compliance specialist, qi program, 290 broadway, new york, new york, 7, phone. Products or services, that are a source of satisfaction, provide the desirable value to. Further, we are required to update these proofs as per the prescribed periodicity once in 5 years and once in 2 years. Public awareness session about the indias accession to the madrid protocol jun 19, 20. Know your customer kyc norms antimoney laundering standards aml compliance to the guidelines attention of the branchesoffices is invited to circular no. Rbi has issued instructions to all banks to implement without fail certain procedural norms on kyc. An integral part of an effective know your customer policy is a comprehensive knowledge of the transactions carried out by the customers of the. Letter issued by the uidai is accepted as an officially valid document for opening all types of bank accounts. The revised kyc policy of the bank incorporates the following. Best practices of aml audit of trade finance in singapore.
Mandatory documents to be submitted as per know your customer norms, directed by reserve bank of india category, if to prove document to be submitted along with application formproof of identity i passport ii pan card iii voters identity card iv driving license v identity card vi letter from recognized public authority o public servant. As per the above circular we are required to carry out kyc know your customer norms as below. Rbiknow your customer kyc norms antimoney laundering. Know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism cft obligation of nbfcs under prevention of money laundering act pmla, 2002 recognising eaadhaar as an officially valid document under pml rules please refer to paragraph i 11 of master circular dnbs pd cc no. A customer lifecycle is the length and nature of a customers relationship with a particular brand or company. Know your customer kyc documents required for card application a declaration by a close relative e. Talk to the customer in advance about a protocol so everyone can stay safe. Know your customer and anti money laundering policy. In paragraph 5 b of the above circular, it has been advised to rrbs that as and when lists of individuals and.
The declaration should be supported with a proof of address and identity of the relative with whom the prospective customer is living. Kyc processes are also employed by companies of all sizes. Individual customers, bank will obtain the customers identity information, address and recent photograph. Clarify the know your customer kyc requirements for opening and operating. What links here related changes upload file special pages permanent link page information wikidata item cite this page. In fact, employee perceptions of fairness or justice in an organization. This involves the verification of a customers identity through documents. Banks must comply with kyc regulations and antimoney laundering regulations to.
Guidelines on know your customer norms and anti money laundering services the company is mainly engaged in investment activities directly in equities, government securities, debt instrument and other financial securities, as well as through mutual funds. Form kyc version know your customerkyc form letters. Know your customer kyc norms and anti money laundering aml. In terms of the provisions of prevention of moneylaundering act, 2002 and the prevention of moneylaundering maintenance of records rules, 2005, regulated entities res are required to follow certain customer identification procedure while undertaking a. Policy and procedures for know your customer customer due diligence account opening policy the customer accounts shall be supported by complete account opening forms and copies of relevant documents. Is it the company on the customer, or the customer on a company. Guidelines on know your customer norms and cash transactions. The know your customer or know your client kyc guidelines in financial services requires that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. Know your customer norms letter issued by unique identification authority of india uidai containing details of name, address and aadhaar number. In connection with rbis guidelines on know your customer kyc norms.
Know your customer kyc dated august 16, 2002 on the guidelines on know your customer norms, kyc guidelines were issued by rbi to check money laundering i. The know your customer or know your client kyc guidelines in financial services requires that. Check with the local jurisdiction to determine whether you can legally perform your service. Know your customer kyc guidelines unique customer identification code for bank customers in india banks to introduce unique customer identification system to track all facilities availed, monitor transactions in a holistic manner and to have better riskprofiling of customers. Policy guidelines on know your customer norms and anti money laundering measures purpose this policy document gives an overview on the standards issued by the reserve bank of india rbi on the know your customer and anti money laundering for nonbanking financial companies thereby setting. Dear sirs, know your customer kyc norms antimoney laundering aml standards combating of financing of terrorism cft obligation of nbfcs under prevention of money laundering act pmla, 2002 recognising eaadhaar as an officially valid document under pml rules. Know your customers customer goes global american banker. The adoption of effective knowyourcustomer kyc standards is an essential part. February 27, 2008 on know your customer kyc normsantimoney laundering aml standardscombating of financing of terrorism cft.
In light of the above, we have developed a know your customer. Kyc norms aml standardscftobligation of banks under. Customer due diligence know your customer kyc norms 2. The true identity of the account operators and the real controlling person shall be established. For marketers, the goal should be to make the customers lifecycle as long and. Guidelines on know your customer kyc norms antimoney laundering aml standards combating financing of terrorism cft norms under prevention of money laundering act, pmla, 2002 as amended by prevention of money laundering amendment act, 2009 for international money transfer servicesinward under the. Know your customer guidelines, wherein certain personal information of the. Know your customer procedures for existing customers. Aadhaar enables customers and banks to easily fulfill knowyourcustomer kyc norms necessary to obtain a bank account or a mobile sim card, while costs have been further reduced by allowing the possibility of digital or ekyc. The chairmen and chief executive officers all scheduled commercial banks excluding rrbs all india financial institutions local area banks. Welcome to sbas online training course, marketing 101. Fields marked with are mandatoryto be filled in black ink with block for instructions to fill form please see overleaf.
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