(1) The Principal Officer of a reporting entity shall furnish the information in respect of transactions referred to in clauses (A), (B), (BA), (C) and (E) of sub-rule (1) of rule 3 every month to the Director by the 15th day of the succeeding month.
(2) The Principal Officer of a reporting entity shall furnish the information promptly in writing or by fax or by electronic mail to the Director in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3 not later than seven working days on being satisfied that the transaction is suspicious.
(3) The Principal Officer of a reporting entity shall furnish, the information in respect of transactions referred to in clause (F) of sub-rule (1) of rule 3, every quarter to the Director by the 15th day of the month succeeding the quarter.
(4) For the purpose of this rule, delay of each day in not reporting a transaction or delay of each day in rectifying a mis-reported transaction beyond the time limit as specified in this rule shall constitute a separate violation.]
1. Ins. by G.5.R. 730(E),dated 22nd September, 2015 (w.e.f. 22-9-2015).
2. Subs. by G.5.R. 576(E), dated 27th August, 2013, for rule 8 (w.e.f. 27-8-2013).Earlier rule 8 was amended by G.S.R. 717(E), dated 13th December, 2005 (w.e.f, 13-12-2005), substituted by G.S.R. 389(E), dated 24th May, 2007 (w.e.f. 24-5-2007) and amended by G.5.R. 816(E),dated 12th November, 2009 (w.e.f. 12-11-2009).Rule 8, before substitution by G.5.R. 576(E),dated 27th August, 2013, stood as under:
"8. Furnishing of information to the Director.-(1) The Principal Officer of a banking company, a financial institution and an intermediary, as the case may be, shall furnish the information in respect of transactions referred to in Clause (A), (B) and (BA)of subrule (1) of rule 3 every month to the Director by the 15th day of the succeeding month.
(2) The Principal Officer of a banking company, a financial institution and an intermediary, as the case may be, shall furnish the information promptly in writing or by fax or by electronic mail to the Director in respect of transactions referred to in clause (C) of sub-rule (1) of rule 3 not later than seven working days from the date of occurrence of such transaction.
(3) The Principal Officer of a banking company, a financial institution and an intermediary, as the case may be, shall furnish the information promptly in writing or by fax or by electronic mail to the Director in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3 not later than seven working days on being satisfied that the transaction is suspicious:
Provided that a banking company, financial institution or intermediary, as the case may be, and its employees shall keep the fact of furnishing information in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3 strictly confidential.".
828 The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 1[9. Client Due Diligence.-(l) Every reporting entity shall-
(a) at the time of commencement of an account-based relationship-
(i) identify its clients, verify their identity, obtain information on the' purpose and intended nature of the business relationship; and [Rule 9 Contd. from previous page
1. Subs. by C.5.R. 576(E), dated 27th August, 2013, for rule 9 (w.e.f. 27-8-2013). Earlier rule 9 was amended by G.S.R.389(E),dated 24th May, 2007 (w.e.f. 24-5-2007),C.5.R. 816(E), dated 12th November 2009 (w.e.f. 12-11-2009),G.S.R.76(E),dated 12th February, 2010 (w.e.f.
12-2-2010),C.S.R. 508(E), dated 16th June, 2010 (w.e.f. 16-6-2010)and G.S.R. 980(E), dated 16th December, 2010 (w.e.f. 16-12-2010).Rule 9, before substitution, by G.5.R. 576(E), dated 27th August, 2013, stood as under:
"9. Verification of the records of the identity of cZients.-(I) Every banking company, financial institution and intermediary, as the case may be, shall,-
(a) at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship, and
(b) in all other cases, verify identity while carrying out-
(i) transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or
(ii) any international money transfer operations.
(IA) Every banking company, financial institution and intermediary, as the case may be, shall determine whether a client is acting on behalf of a beneficial owner, identify the beneficial owner and take all reasonable steps to verify his identity.
Explanation.-For the purposes of this sub-rule "beneficial owner" shall mean the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person.
(lB) Every banking company, financial institution and intermediary, as the case may be, shall exercise ongoing due diligence with respect to the business relationship with every client and 'closely, examine the transactions in order to ensure that they are consistent with their knowledge of the client, his business and risk profile and where necessary, the source of funds.
(lC) No banking company, financial institution or intermediary, as the case may be, shall allow the opening of or keep any anonymous account or account in fictitious names or account on behalf of other persons whose identity has not been disclosed or cannot be verified.
(10) When there are suspicions ofmoney laundering or financing of the activities relating to terrorism or where there are doubts about the adequacy or veracity of previously obtained customer identification data, every banking company, financial institution and <, intermediary shall review the due diligencemeasures including verifying again the identity of the client and obtaining information on the purpose and intended nature of the business relationship, as the case may be.
(2) Where the client is an individual, he shall for the purpose of sub-rule (1), submit to the banking company, financial institution and intermediary, as the case may be, one certified copy of an 'officially valid document' containing details of his identity and address, one recent photograph and such other documents including in respect of the nature of business and financial status of the client as may be required by the banking company or the financial institution or the intermediary, as the case may be:
Provided that photograph need not be submitted by a client falling under clause (b) of sub-rule (1).
(2A)Notwithstanding anything contained in sub-rule (2), an individual who desires to open a small account in a banking company may be allowed to open such an account on Contd. on next page Rule 9] The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
(ii) determine whether a client is acting on behalf of a beneficial owner, and identify, the beneficial owner and take all steps to verify the identity of the beneficial owner:
82C Conid. from previous page production of a self-attested photograph and affixation of signature or thumb print, as the case may be, on the form for opening the account:
Provided that-
(i) the designated officer of the banking company, while opening the small account, certifies under his signature that the person opening the account has affixed his signature or thumb print, as the case may be, in his presence;
(ii) a small account shall be opened only at Core Banking Solution linked banking company branches or in abranch where it is possible to manually monitor and ensure that foreign remittances are not credited to a small account and that the stipulated limits on monthly and annual aggregate of transactions and balance in such accounts are not breached, before a transaction is allowed to take place;
(iii) a small account shall remain operational initially for a period of twelve months, and thereafter for a further period of twelve months if the holder of such an account provides evidence before the banking company of having applied for any of the officially valid documents within twelve months of the opening of the said account, with the entire relaxation provisions to be reviewed in respect of the said account after twenty-four months;
(iv) a small account shall be monitored and when there is suspicion of money laundering or financing of terrorism or other high risk scenarios, the identity of client shall be established through the production of officially valid documents, as referred to in sub-rule (2) of rule 9; and
(v) foreign remittance shall not be allowed to be credited into a small account unless the identity of the client is fully established through the production of officially valid documents, as referred to in sub-rule (2) of rule 9,
(3)Where the client is a company, it shall for the purposes of sub-rule (1) submit to the banking company or financial institution or intermediary, as the case may be, one certified copy of the following documents-c-
(i) Certificate of incorporation;
(ii) Memorandum and Articles of Association;
(iii) a resolution from the Board of Directors and power of attorney granted, to its managers, officers or employees to transact on its behalf; and
(iv) an officially valid document in respect of managers, officers or employees holding an attorney to transact on its behalf,
(4)Where the client is a partnership firm, it shall for the purposes of sub-rule (1) submit to the banking company, or the financial institution, or the intermediary one certified copy of the following documents:-
(i) registration certificate;
(ii) partnership deed; and
(iii) an officially valid document in respect of the person holding an attorney to transact on its behalf,
(5) Where the client is a trust, it shall, "for the purposes of sub-rule (1) submit to the banking company," or the financial institution, or the intermediary one certified copy of the following documents:-
(i) registration certificate;
(ii) trust deed; and
(iii) an officially valid document in respect of the person holding an attorney to transact on its behalf, Conid. on next page The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
Provided that where the Regulator is of the view that money laundering and terrorist financing risks are effectively managed and where this is essential not to interrupt the normal conduct of business, the Regulator may permit the reporting entity to complete the verification as soon as reasonably practicable following the establishment of the relationship; and
(b) in all other cases, verify identity while carrying out-
(i) transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or
(ii) any international money transfer operations.
l[(lA) Subject to the provisions of sub-rule (I), every reporting entity shall within three days after the commencement of an account-based relationship with a client, file the electronic copy of the client's KYC records with the Central , KYCRecords Registry;] .
l[(lB) The Central KYC Records Registry shall process the KYC records received from a reporting entity for de-duplicating and issue a KYCIdentifier for each client to the reporting entity, which shall communicate the KYCIdentifier in writing to their client;]
1[(1C)Where a client, for the purposes of clause (a) and clause (b), submits a KYCIdentifier to a reporting entity, then such reporting entity shall retrieve the KYC records online from the Central KYCRecords Registry by using the KYC Identifier and shall not require a clien:tto submit the same KYC records or information or any other additional identification documents or details, unless- 820 [Rule 9 Contd. from previous page
(6) Where the client is an unincorporated association or a body of individuals, it shall submit to the banking company, or the financial institution or the intermediary one certified copy of the following documents:-
(i) resolution of the managing body of such association or body of individuals;
(ii) power of attorney granted to him to transact on its behalf;
(iii) an officiallyvalid document in respect of the person holding an attorney to transact on its behalf; and
(iv) such information as may be required by the banking company or the financial institution or the intermediary to collectively establish the legal existence of such an association or body of individuals.
(6A)Where the client is a juridical person, the banking company, financial institution and intermediary, as the case may be, shall verify that any person purporting to act on behalf of such client is so authorised and verify the identity of that person.
(7) (i) The regulator shall issue guidelines incorporating the requirements of sub-rules
(1) to (6A) above and may prescribe enhanced measures to verify the client's identity taking into consideration type of client, business relationship or nature and value of transactions.
(ii) Every banking company, financial institution and intermediary as the case may be, shall formulate and implement a Client Identification Programme to determine the true identity of its clients, incorporating requirements of sub-rules (1) to (6A) and guidelines issued under clause (i) above.",
1. Ins. by C.S.R. 544(E),dated 7th July, 2015 (w.e.f. 7-7-2015).
The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
(i) there is a change in the information of the client as existing in the records of Central KYCRecords Registry;
(ii) the current address of the client is required to be verified;
(iii) the reporting entity considers it necessary in order to verify the identity or address of the client, or to perform enhanced due diligence or to build an appropriate risk profile of the client.]
l[(lD) A reporting entity after obtaining additional or updated information from a client under sub-rule (1C), shall as soon as possible furnish the updated information to the Central KYCRecords Registry which shall update the existing KYCrecords of the client and the Central KYCRecords Registry shall thereafter inform electronically all reporting entities who have dealt with the concerned client regarding updatation of KYC record of the said client.]
l[(lE) The reporting entity which performed the last KYCverification or sent updated information in respect of a client shall be responsible for verifying the authenticity of the identity or address of the client.]
l[(lF) A reporting entity shall not use the KYCrecords of a client obtained from the Central KYCRecords Registry for purposes other than verifying the identity or address of the client and shall not transfer KYC records or any information contained therein to any third party unless authorisedto do so by the client or by the Regulator or by the Director;]
1[(1G) The regulator shall issue guidelines to ensure that the Central KYC records are accessible to the reporting entities in real time.]
(2) For the purpose of clause (a) of sub-rule (1), a reporting entity may rely on a third party subject to the conditions that-.
2[(a) the reporting entity, within two days, obtains from the third party or from the Central KYCRecords Registry records or the information of the client due diligence carried out by the third party.]
(b) the reporting entity takes adequate steps to satisfy itself that copies of identification data and other relevant documentation relating to the client due diligence requirements will be made available from the third party upon request without delay;
(c) the reporting entity is satisfied that such third party is regulated, supervised ormonitored for, and has measures in place for compliance with client due diligence and record-keeping requirements in line with the requirements and obligations under the Act;
(d) the third party is not based in a country or jurisdiction assessed as high risk;
Rule 9] 82E
1. Ins. by C.5.R. 544(E), dated 7th July, 2015 (w.e.f. 7-7-2015).
2. Subs. by C.S.R. 544(E), dated 7th July, 2015, for clause (a) (w.e.f. 7-7-2015). Clause (a), before substitution, stood as under:
"(a) the reporting entity immediately obtains necessary information of such client due diligence carried out by the third party;".
• The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
(e) the reporting entity is ultimately responsible for client due diligence and undertaking enhanced due diligence measures, as applicable;
and
(f) where a reporting entity relies on a third party that is part of the same financial group, the Regulator may issue guidelines to consider any relaxation in the conditions (a) to (d).
(3)The beneficial owner for the purpose of sub-rule (1) shall be determined as under-
(a) where the client is a company, the beneficial owner is the nahlral person(s), who, whether acting alone or together, or through one or more juridical person, has a controlling ownership interest or who exercises control through other means.
Explanation.-For the purpose of this sub-clause-
1. "Controlling ownership interest" means ownership of or entitlement to more than twenty-five per cent. of shares or capital or profits of the company;
2. "Control" shall include the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements;
(b) where the client is a partnership firm, the beneficial owner is the natural personfs) who, whether acting alone or together, or through one or more juridical person, has ownership ofIentitlement to more than fifteen per cent. of capital or profits of the partnership;
(c) where the client is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has ownership of or entitlement to more than fifteenper cent.
of the property or capital or profits of such association or body of individuals;
(d) where no natural person is identified under (a) or (b) or (c) above, the beneficial owner is the relevant natural person who holds the position of senior managing official;
(e) where the client is a trust, the identification of beneficial owner(s) shall include 'identification of the author of the trust, the trustee, the beneficiaries with fifteen per cent. or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership; and
(f) where the client or the owner of the controlling interest isa company listed on a stock exchange, or is a subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
82F [Rule 9 The Prevention of Money-laundering (Maintenance of Records) 82G Rules, 2005 1[(4) Where the client is an individual, who is eligible to be enrolled for an Aadhaar number, he shall for the purpose of sub-rule (1) submit to the reporting entity,- .
(a) the Aadhaar number issued by the Unique Identification Authority of India; and
(b) the Permanent Account Number or Form No. 60 as defined ill Income-tax Rules, 1962;
and such other documents including in respect of the nature of business and financial status of the client as may be required by the reporting entity:
Provided that where an Aadhaar number has not been assigned to a client, the client shall furnish proof of application of enrolment for Aadhaar and in case the Permanent Account Number is not submitted, one certified copy of an 'officially valid document' shall be submitted,
1. Subs. by G.5.R. 538(E),dated 1st June, 2017, for sub-rule 4 to sub-rule (9) (w.e.f. 1-6-2017).
Sub-rule (4) to sub-rule (9), before substitution, stood as under:
"(4) Where the client is an individual, he shall for the purpose of sub-rule (I), submit to the reporting entity, one certified copy of an 'officially valid document' containing details of his identity and address, one recent photograph and such other documents including in respect of the nature of business and financial status of the client as may be required by the reporting entity:
Provided that photograph need not be submitted by a client falling under clause (b) of sub-rule (1).
(5)Notwithstanding anything contained in sub-rule (4),an individual who desires to open a small account in a banking company may be allowed to open such an account on production of a self-attested photograph and affixation of Signature or thumb print, as the case may be, on the form for opening the account:
Provided that-
(i) the designated officer of the banking company, while opening the small account, certifies under his signature that the person opening the account has affixed his signature or thump print, as the case may be, in his presence;
(ii) a small account shall be opened only at Core Banking Solution linked banking company branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to a small account and that the stipulated limits on monthly and annual aggregate of transactions and balance in such accounts are not breached, before a transaction is allowed -to take place;
(iii) a small account shall remain operational initially for a period of twelve months, and thereafter for a further period of twelve months if the holder of such an account provides evidence before the banking company of having applied for any of the officially valid documents within twelve months of the opening of the said account, with the entire relaxation provisions to be reviewed in respect of the said account after twenty-four months;
(iv) a small account shall be monitored and when there is suspicion of money laundering or financing of terrorism or other high risk scenarios, the identity of client shall be established through the production of officially valid documents, as referred to in sub-rule (4) of rule 9; and
(v) foreign remittance shall not be allowed to be credited into a small account unless the identity of the client is fully established through the production of officiallyvalid documents, as referred to in sub-rule (4) of rule 9.
(6)Where the client is a company, it shall for the purposes of sub-rule (1) submit to the reporting entity one certified copy of the following documents:- Contd. all next page The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
Provided further that photograph need not be submitted by a client fallin under clause (b) of sub-rule (1).
l[Explanation.-Obtaining a certified copy by reporting entity shall mea comparing the copy of officiallyvalid document so produced by the client wit the original and recording the same on the copy by the authorised officer of th reporting entity in a manner prescribed by the regulator.]
(4A) Where the client is an individual, who is not eligible to be enrolle for an Aadhaar number, he shall for the purpose of sub-rule (1), submit to th reporting entity, the Permanent Account Number or Form No. 60 as defined i the Income-tax Rules, 1962:
Provided .that if the client does not submit the Permanent Account Numbe he shall submit one certified copy of an 'officially valid document' containin details of his identity and address, one recent photograph and such othe documents including in respect of the nature or business and financial statu of the client as may be required by the reporting entity.
(5) Notwithstanding anything contained in sub-rules (4) and (4A), a individual who desires to open a small account in a banking company may b allowed to open such an account on production of a self-attested photograp and affixation of signature or thumb print, as the case may be, on the form fc opening the account:
Provided that-
(i) the designated officer of the banking company, while opening th small account, certifies under this signature that the person openin the account has affixed his signature or thump print, as the case ma be, in his presence:
82H [Rule Contd. from previous page
(i) Certificate of incorporation;
(ii) Memorandum and Articles of Association;
(iii) A resolution from the Board of Directors and power of attorney granted to i managers, officers or employees to transact on its behalf; and
(iv) art officiallyvalid document in respect of managers, officers or employees holdir an attorney to transact on its behalf.
(7) Where the client is a partnership firm, it shall for the purposes of sul rule (1) submit to the reporting entity one certified copy of the following documents:-
(i) registration certificate;
(ii) partnership deed; and
(iii) an officiallyvalid document in respect of the person holding an attorney to transa on its behalf.
(8) Where the client is a trust, it shall, for the purposes of sub-rule (1) submit to tl reporting entity one certified copy of the following documents:-
(i) registration certificate;
(ii) trust deed; and
(iii) an officiallyvalid document in respect of the person holding an attorney to transa.
~ on its behalf.
(9) Where the client is an unincorporated association or a body of individuals, it sha submit to the reporting entity one certified copy of the following documents:-
(i) resolution of the managing body of such association or body of individuals;
(ii) power of attorney granted to him to transact on its behalf;
(iii) an officially valid document in respect of the person, holding an attorney to transact c its behalf; and
(iv) such information as may be required by the reporting entity to collectively establish tl legal existence of such an association or body of individuals.".
l. Ins. by G.s.R. 1300(E),dated 16th October, 2017 (w.e.f. 16-10-2017).
The Prevention of Money-laundering (Maintenance of Records) Rules, 2005
(ii) the small account shall be opened only at Core Banking Solution linked banking company branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to a small account and that the stipulated limits on monthly and annual aggregate of transactions and balance in such accounts are not breached,.before a transaction is allowed to take place;
(iii) the small account shall remain operational initially for a period of twelve months, and thereafter for a further period of twelve months if the holder of such an account provides evidence before the banking company of having applied for any of the officiallyvalid documents within twelve months of the opening of the said account, with the entire relaxation provisions to be reviewed in respect of the said account after twenty-four months.
(iv) the small account shall be monitored and when there is suspicion of money laundering or financing of terrorism or other high risk scenarios, the identity of client shall be established through the production of officiallyvalid documents, as referred to in sub-rule (4) and the Aadhaar number of the client or where an Aadhaar number has not been assigned to the client, through the production of proof of application towards enrolment for Aadhaar along with an officially valid document;
Provided further that if the client is not eligible to be enrolled for an Aadhaar number, the identity of client shall be established through the production of an officiallyvalid document;
(v) the foreign remittance shall not be allowed to be credited into the small account unless the identity of the client is fully established through the production of officially valid documents, as referred to in sub-rule (4) and the Aadhaar number of the client or where an Aadhaar number has not been assigned to the client, through the production of proof of application towards enrolment for Aadhaar along with an.officiallyvalid document:
Provided that if the client is not eligible to be enrolled for the Aadhaar number, the identity of client shall be established through the production of an officiallyvalid document.
(6) Where the client is a company, it shall for the purposes of sub-rule (I), submit to the reporting entity the certified copies of the following documents:-
(i) Certificate of incorporation;
(ii) Memorandum and Articles of Association;
(iii) A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf:
(iv) (a) Aadhaar number; and
(b) Permanent Account Number or Form 60as defined in the Incometax Rules, 1962.
issued to managers, officersor employees holding an attorney to transact on the company's behalf or where an Aadhaar number has not been assigned, proof of application towards enrolment for Aadhaar and in case Permanent Account Number is not submitted an officiallyvalid document shall be submitted:
Rule 9] 82-1 82J The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 [Rule 9
Provided that for the purpose of this clause if the managers, officers or employees holding an attorney to transact on the company's behalf are not eligible to be enrolled for Aadhaar number and do not submit the Permanent Account Number, certified copy of an officially valid document shall be submitted.
(7) Where the client is a partnership firm, it shall, for the purposes of subrule (I), submit to the reporting entity the certified copies of the following documents:- .
(i) registration certificate;
(ii) partnership deed; and
(iii) (a) Aadhaar number; and
(b) Permanent Account Number or Form 60 as defined in the Incometax Rules, 1962, issued to the person holding an attorney to transact on its behalf or where an Aadhaar number has not been assigned, proof of application towards enrolment for Aadhaar and in case Permanent Account Number is not submitted an officially valid document shall be submitted:
Provided that for the purpose of this clause, if the person holding an attorney to transact on the company's behalf is not eligible to be enrolled for Aadhaar number and does not submit the Permanent Account Number, certified copy of ar, officially valid document shall be submitted. .
(8) Where the client is a trust, it shall, for the purposes of sub-nile (1) submit to the reporting entity the certified copies of the following documents:-
(i) registration certificate:
(ii) trust deed; and
(iii) (a) Aadhaar number; and
(b). Permanent Account Number or Form 60 as defined in the Incometax Rules, 1962, issued to the 'person holding an attorney to transact on its behalf or where Aadhaar number has not been assigned, 'proof of application towards enrolment for Aadhaar and in case Permanent Account Number is not submitted an officially valid document shall be submitted:
Provided that for the purpose of this clause if the person holding an attorney to transact on the company's behalf is not eligible to be enrolled for Aadhaar number and does not submit the Permanent Account Number, certified copy of an officially valid document shall be submitted.
(9)Where the client is an unincorporated association or a body of individuals, it shall submit to the reporting entity the certified copies of the following documents:-
(i) resolution of the managing body of such association or body of individuals;
(ii) power of attorney granted to him to transact on its behalf;
(iii) (a) the Aadhaar number; and
(b) Permanent Account Number or Form 60 as defined in the Incometax Rules, 1962, issued to the person holding, an attorney to transact on its behalf or where Aadhaar number has not been assigned proof of application towards enrolment for Aadhaar and in case the Permanent Account Number is not submitted an officially valid document shall be submitted; and Rule 9] The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 82K I
(iv) such information as may be required by the reporting entity to collectively establish the legal existence of such an association or body of individuals;
Provided that for the purpose of this clause if the person holding an attorney to transact on the company's behalf is not eligible to be enrolled for Aadhaar number and does not submit the Permanent Account Number, certified copy of an officiallyvalid document shall be submitted.]
(10)Where the client is a juridical person, the reporting entity shall verify that any person purporting to act on behalf of such client is so authorized and verify the identity of that person.
(11)No reporting entity shall allow the opening of or keep any anonymous account or account in fictitious names or account on behalf of other persons whose identity has not been disclosed or cannot be verified.
(12) (i) Every reporting entity shall exer :ise ongoing due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the client, his business and risk profile and where necessary, the source of funds.
(ii) When there are suspicions of money laundering or financing of the activities relating to terrorism or where there are doubts about the adequacy or veracity of previously obtained client identification data, the reporting entity shall review the due diligence measures including verifying again the identity of the client and obtaining information on the purpose and intended nature of the business relationship, as the case may be.
(iii) The reporting entity shall apply client due diligence measures also to existing clients on the basis of materiality and risk, and conduct due diligence OT'. such existing relationships at appropriate times or as may be specified by the regulator, taking into account whether and when client due diligence measures have previously been undertaken and the adequacy of data obtained.
(13) (i) Every reporting entity shall carry out risk assessment to identify, assess' and take effective measures to mitigate its money laundering and terrorist financing risk for clients, countries or geographic areas, and products, services, transactions or delivery channels that is consistent with any national risk assessment conducted by a body or authority duly notified by the Central Government.
(ii) The risk assessment mentioned in clause (i) shall-
(a) be documented;
(b) consider all the relevant risk factors before determining the level of overall risk and the appropriate level and type of mitigation to be applied;
(c) be kept up to date; and
(d) be available to competent authorities and self-regulating bodies.
(14)(i)The regulator shall issue guidelines incorporating the requirements of sub-rules (1) to (13) above and may prescribe enhanced or simplified measures to verify the client's identity taking into consideration the type of client, business relationship, nature and value of transactions based on the overall money laundering and terrorist financing risks involved.
Explanation.-For the purpose of this clause, simplified measures are not acceptable whenever there is a suspicion of money laundering or terrorist financing, or where specific higher-risk scenarios apply or where the risk identified is not consistent with the national risk assessment.
(ii) Every reporting entity shall formulate and implement a Client Due Diligence Programme, incorporating the requirements of sub-rules (1) to (13) and guidelines issued under clause (i) above.
The Prevention of Money-laundering (Maintenance of Records) Rules. 2005
(iii) the Client Due Diligence Programme shall include policies, controls and procedures, approved by tile senior management, to enable the reporting entity to manage and mitigate the risk that have been identified either by the reporting enti\r or through national risk assessment.
[(15)Any reporting entity, at the time of receipt of the Aadhaar number under provisions of this rule, shall carry out authentication using either e-KYC authentication facility or Yes/No authentication facility provided by Unique Identification Authority of India.] " 1[(16) In case the client referred to in sub-rules (4) to (9) of rule 9 is not a resident or is a resident in the States of Jammu and Kashmir, Assam or Meghalaya and does not submit the Permanent Account Number, the client shall submit to the reporting entity one certified copy of officially valid document containing details of his identity and address; one recent photograph and such other document including in respect of the nature of business and financial status of the client as may be required by the reporting entity.]
1[(17) (a) In case the client, eligible to be enrolled for Aadhaar and obtain a Permanent Account Number, referred to in sub-rules (4) to (9) of rule 9 does not submit the Aadhaar number or the Permanent Account Number at the time of commencement of an account based relationship with a reporting entity, the client shall submit the same within a period of six months from the date of the commencement of the account based relationship:
Provided that the clients, eligible to be enrolled for Aadhaar and obtain the Permanent Account Number, already having an account based relationship with reporting entities prior to date of this notification, the client shall 2[submit the Aadhaar number and Permanenet Account Number or Form No. 60, by such date* as may be notified by the Central Government].
(b)As per regulation 12 of the Aadhaar (Enrolment and Update) Regulations, 2016, the local authorities in the State Governments or Union-territory Administrations have become or are in the process of becoming UIDAIRegistrars for Aadhaar enrolment and are organising special Aadhaar enrolment camps at convenient locations for providing enrolment facilities in consultation with UIDAI and any individual desirous of commencing an account based relationship as provided in this rule, who does not possess the Aadhaar number or has not yet enrolled for Aadhaar, may also visit such special Aadhaar enrolment camps for Aadhaar enrolment or any of the Aadhaar enrolment centres in the vicinity with existing registrars of UIDAL
(c) In case the client fails to submit the Aadhaar number and Permanent Account Number within the aforesaid six months period, the said account shall cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client:
3[Provided that in case the client already having an account based relationship with reporting entities prior to the date of publication of this notification in the 82L [Rule 9 1: Ins. by G.5.R. 538(E),dated 1st June, 2017 (w.e.f. 1-6-2017).
2. Subs. by G.S.R. 1506(E),dated 12th December, 2017, for "submit the Aadhaar number and Permanent Account Number by 31st December, 2017" (w.e.f. 12-12-2017).
• The Central Government hereby notifies the 31st March, 2018 or six months from the date of commencement of account based relationship by the client, whichever is later, as the date of submission of the Aadhaar Number, and Permanent Account Number or Form 60 by the clients to the reporting entity. [Vide G.S.R. 1509(E),dated 13th December, 2017.]
3. Subs. by G.S.R. 1506(E),dated 12th December, 2017, for proviso (w.e.f. 12-12-2017).Proviso, before substitution, stood as under:
"Provided that in case client already having an account based relationship with reporting entities prior to date of this notification fails to submit the Aadhaar number and Permanent Account Number by 31st December, 2017, the said account shall cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client.". • RUie 9Al The Prevention of Money-laundering (Maintenance at Records) Rules, 2005 82M official Gazette fails to submit the Aadhaar number and Permanent Account Number by such date as may be notified by the Central Government, the said account shall cease to be operational till the time the Aadhaar Number and Permanent Account Number is submitted by the client.]] .
1{(18)In case the identity information relating to the Aadhaar number or Permanent Account Number submitted by the client referred to in sub-rule (4) to
(9) of rule 9 does not have current address of the client, the client shall submit an officially valid document to the reporting entity:]
2[Provided that in case of officially valid document furnished by the client does not contain updated address, the following documents shall be deemed to be officially valid documents for the limited purpose of proof of address:-
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contam the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.]