The RBI has amended rules governing know-your-customer checks undertaken by lenders, according to a statement by the regulator on Friday.
The changes have been made to align with the recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules, update them in accordance with recommendations from the Financial Action Task Force and incorporate instructions from a Union government order.
The amendments grant permission to conduct Aadhaar, OTP-based e-KYC in non-face-to-face mode for periodic updation of details, the Reserve Bank of India's annexure of changes stated.
The RBI has also lowered the threshold for controlling ownership interest when it comes to determining beneficial ownership of a company or trust. It has been lowered to 10% for both companies and trusts, down from 25% and 15%, respectively.
Other Changes Introduced By The Amendments:
Customer due diligence related to companies:
KYC will require the names of the relevant persons holding senior management positions.
Similarly, for all partners in partnership and all beneficiaries, trustees, settlor and authors of a trust.
Non-profit organisations: Regulated entities to ensure that the details of such customers are registered on the DARPAN portal of NITI Aayog.
Global sanctions: United Nations Security Council sanctions lists and lists as available in the Schedules to the Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, shall be verified on a daily basis
Defining shell banks: Physical presence means a meaningful mind and management located in a country. The existence simply of a local agent or low-level staff does not constitute physical presence.
Non-face-to-face customer onboarding:
Regulated entities shall verify the current address through positive confirmation before allowing operations in the account.
Permanent Account Number shall be obtained from the customer and shall be verified.
Customers will be categorised as high risk customers and accounts opened in non-face-to-face mode shall be subjected to enhanced monitoring until the identity of the customer is verified in face-to-face manner or through video-based identity verification.
Unique Customer Identification Code: Requirement to allot UCIC to all customers has been extended to all regulated entities.
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