Carbon Registry - India
Since September 16, 2021
Know Your Customer(KYC) is the process of verifying the identity of customer. The objective of KYC guidelines is to prevent banks from being used, by criminal elements for money laundering activities. It also enables us to understand our customers and their financial dealings to serve them better and manage its risks well.
PurposeThe KYC guidelines have been put in place by the Reserve Bank of India in the context of the recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT). The Prevention of Money Laundering Act requires banks, financial institutions and intermediaries to ensure that they follow certain minimum standard of KYC and AML.
Importance of KYCKYC is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information. For the purpose of verifying the identity of:
Proof of the name, address and activity of the concern
ID and address proof of the proprietor
Proof of identity & address of all the partners / beneficial owners – natural persons if beneficial owners are non individuals (owning 15% capital or entitled for 15% profits)
Proof of identity & address of all the beneficial owners (natural persons if beneficial owners are non -individuals) ( owning 25% share or capital or entitled for 25% profits in case of company which is not listed in a Stock Exchange (Submission of Proof of identity & address by beneficial owners of a company listed in stock exchange or is a company majority owned one by such listed company is not warranted)
Trusts & foundations
Proof of identity and address of persons like trustees, executors, administrators etc. ( beneficial owners – natural persons)
Unincorporated association or body of individuals