Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
A Master Circular was released by the Reserve Bank of India (RBI) “Know Your Customer (KYC) Directions, 2016”. The title of the Master Direction was “Know Your Customer (KYC) Guidelines/ Anti-Money Laundering Standards (AML)/ Combating Financing of Terrorism (CFT)/ Obligations of the banks and financial institutions under the Prevention of Money Laundering Act, 2002 (PMLA)”. These guidelines mentioned under these Master Directions have to be complied by all the financial institutions. These Directions also provide that a minimum requirement or disclosures that need to be made in respect of the clients of the company in furtherance of the customer due diligence under PMLA.
Table of Contents
Customer due diligence under PMLA is a set of guidelines that need to be followed by all the financial institutions while opening an account of a client and to oversee that the account is not opened in furtherance of money laundering activities and terrorist financing activities or other such criminal activities. Proper identification and verification of the client needs to be done according to the directions.
Following is the list of due diligence measures under PMLA that have been highlighted under the Master Directions released by the RBI which states that a company has to monitor their clients to identify, mitigate and manage any money laundering/ terrorist financing risks that may arise while offering any loan facility to a potential or existing client:
The Master Circular released by RBI on Customer Due Diligence under PMLA will ensure that the transaction activities of the clients are monitored by the financial institution in such a manner that the accounts are do not become the tools or gateways of money laundering and terrorist financing. The government has initiated towards digitisation of KYC records so that clients do not face any hassles while submitting their records.
Read Our Article: Summarizing the Due Diligence Process in India
The Companies Commission of Malaysia sets mandatory guidelines for maintaining the annual compl...
An industry audit is an important aspect of the oil and gas industry, it serves as a tool for e...
With the ever-increasing complexity of operations and potential risks involved with the chemica...
A joint venture is a strategic business arrangement in which two or more companies collaborate...
With the rising inflation rates and various other economic factors, wealthy Americans are incre...
Are you human?: 2 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Private equity investments come with several inherent risks but also have substantial growth potential. This is the...
30 Mar, 2024
One of the essential components of India's financial services sector is a Non-Banking Financial Company. The Reserv...
12 Apr, 2023
Chat on Whatsapp
Hey I'm Suman. Let's Talk!