of transactions to confuse the audit trail and distance the original source of funds (e.g. successive transactions, international transfers, early termination products, tax haven companies, genuine businesses).
of funds back into the real economy as “clean and respectable money”
These guidelines are issued under Section 35 (A) of the Banking Regulation Act, 1949 and any contravention of the same will attract penalties under the relevant provisions of the Act. Banks are advised to bring the guidelines to the notice of their branches and controlling offices.
A customer or entity that maintains an account and/or has a business relationship with the bank;
One on whose behalf the account is maintained (i.e. the beneficial owner)
Beneficiaries of transactions conducted by professional intermediaries such as stock brokers, chartered accountants, solicitors, etc. as permitted under the law, and
Any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of high value demand draft as a single transaction.
*Subject to the satisfaction of the officer authorising the opening of the account
Note: Original should be produced for verification and copy, duly attested by the verifying official, shall be kept along with the account
Towards Name proof Photo Identification Towards address proof Passport where the address differs Telephone Bill Voter’s Identity Card Bank account statement PAN Card Income/Wealth tax assessment order Driving Licence Credit Card Statement Govt. /Defence ID card * Electricity Bill ID cards of reputed employers * Ration Card Letter from a recognised public authority or public servant verifying the identity and residence of the customer* Letter from employer*
Financial intermediaries should prepare and maintain documentation on their customer relationships and transactions to meet the requirements of relevant laws and regulations, to enable any transaction effected through them to be reconstructed. In the case of wire transfer transactions, the records of electronic payments and messages must be treated in the same way as other records in support of entries in the account.
All financial transactions records should be retained for at least five years after the transaction has taken place and should be available for perusal and scrutiny of audit functionaries as well as regulators as and when required.
Relaxed KYC procedure refers to acceptance of an introduction in full KYC procedure subject to certain conditions prescribed.
This relaxation is applicable for Low Income Group customers, individuals falling under the 'No frill‘ category, persons affected by natural calamities like floods, cyclone, tsunami, etc.
Low Income group customers are those who keep balances not exceeding Rs.50000/- in all their accounts (FDR/CA/SB) taken together and the total credit summation in all the accounts taken together is not expected to exceed Rupees One Lakh (Rs.100000/-) in a year.
For these customers, branches are permitted to open accounts subject to the following conditions:
An introduction (in lieu of the KYC documents) from another account holder who has been subjected to full KYC procedure should be given.
The introducer's account with the Bank should be at least six month's old and should show satisfactory transactions.
The photograph of the customer who proposes to open the account and his address need to be certified by the introducer.
When, at any point of time, the total balance in all his/her accounts (FDR/SB/CA) with the Bank taken together exceeds Rupees Fifty thousands (Rs.50000/-) or total credit summation in all the accounts exceeds Rupees one lakh (Rs.100000/-) in a year, no further transactions will be permitted until the full KYC procedure is completed.