Revision of KYC/AML/CFT norms

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M.Sivakumar, Branch Secretary, Arni

Revision of KYC/AML/CFT norms

vide SB order No 12/2023 dated 25.05.2023

Master circular No 1 – vide SB order No 14/2012 dated 09.10.2012.

Master circular No 2 – In order to comply with the guidelines if Financial Intelligent Unit-India (FIU-IND) & Financial Action Task Force (FATF) revised guidelines on AML/CFT norms have been issued in Master Circular No.2.

No account is opened in anonymous or fictitious name / Benami…

Low risk - 50000/- =  Photo recent / PAN / Aadhaar

Medium risk – 50001/- to 10 lakh = Photo recent / PAN /Aadhaar

High risk – above 10 lakh Photo recent /PAN / Aadhaar& Source of Fund.

Note: - Where the customer opens account or applies for purchase of certificates or applies for credit of maturity/ prematurity value of any existing savings instrument with an amount exceeding ₹ 10 lakh and balance in all accounts and certificates does not exceed ₹ 10 lakh.

• PROOF OF SOURCE OF FUND: -

The customer has to submit copy of document showing source of receipt of funds tendered for investment. 

Any of the following documents may be obtained as Proof of Source of Fund

• 1. Bank / Post Office Account Statement (which reflects the source / receipt of fund)

• 2. Any one of the Income Tax Returns filed during the last three financial years( which co-relates the investment with the gross income)

• 3. Sale deed / Gift deed / Will / Letter of Administration/ Succession Certificate.

• 4. Any other document which reflects the income /source of fund.

Review of CDD/Re-KYC

Risk Category Number of years after which the CDD documents and information should be reviewed

Low  Every seven years

Medium  Every five years

High  Every two years

• Disposal of Photograph (s)

BPM/SPM/Supervisor (APM/DPM) will attest the photograph(s) after ensuring that the face impression of depositor/holder agrees with the photograph. In case depositor(s) is/are unable to attend post office for opening of account and all documents are submitted through authorized person or in case of investment through agent (in RD/TD/MIS/KVP/NSC only), the photograph should be attested by comparing the same with copy of Photo ID. If the photo on the photocopy is not legible, the agent should be asked to submit either legible copy or the original document. If identity is still not established, depositor may be called for personally in the post office.

Attestation of KYC documents

All the KCY documents should be self-attested by the depositors/holders.

In case of illiterate customers, the documents are to be attested by any of the Gazetted Officer or Sarpanch Gram Panchayat or any Postal Staff or GDS.

If the account is opened through Agent, the Agent should also attest the KYC documents with Agency Number and date of Validity in addition to self-attestation of depositors/holders.