RBI/2013-14/634
DBOD.AML.BC. No. 119/14.01.001/2013-14
June 9, 2014
The
Chairperson/CEOs of all Scheduled Commercial Banks (Excluding RRBs)/
Local Area Banks / All India Financial Institutions
Dear
Sir/ Madam,
Know
Your Customer (KYC) Norms/Anti-Money Laundering (AML) Standards/ Combating
of Financing of Terrorism (CFT) /Obligation of banks under Prevention of
Money Laundering Act (PMLA), 2002 – Clarification on Proof of Address
Please
refer to paragraph 2.4 (h), (i),
(j) (l), (m) and Annex I of Reserve
Bank’s Master Circular on Know Your Customer (KYC) Norms/Anti-Money
Laundering (AML) Standards/Combating of Financing of Terrorism
(CFT)/Obligations under Prevention of Money Laundering Act (PMLA), 2002,
issued vide DBOD. AML. BC. No.
24/14.01.001/2013-14 dated July 1, 2013, regarding requirement
of ‘proof of address’ while opening a bank account by individuals.
2.
Reserve Bank has been receiving representations/references from various
quarters’ especially migrant workers, transferred employees, etc. regarding
problems faced in submitting a proof of current/permanent address while
opening a bank account. The matter has since been examined in the light of
amendment to the Prevention of Money Laundering Rules (Maintenance of
Records), 2005, and accordingly it has been decided to simplify the
requirement of submission of ‘proof of address’ as follows:
- Henceforth,
customers may submit only one documentary proof of address (either
current or permanent) while opening a bank account or while undergoing
periodic updation. In case the address mentioned as per ‘proof of
address’ undergoes a change, fresh proof of address may be submitted
to the branch within a period of six months.
- In
case the proof of address furnished by the customer is not the local
address or address where the customer is currently residing, the bank
may take a declaration of the local address on which all
correspondence will be made by the bank with the customer. No proof is
required to be submitted for such address for correspondence/local
address. This address may be verified by the bank through ‘positive
confirmation’ such as acknowledgment of receipt of (i) letter, cheque
books, ATM cards; (ii) telephonic conversation; (iii) visits; etc. In
the event of change in this address due to relocation or any other
reason, customers may intimate the new address for correspondence to
the bank within two weeks of such a change.
3.
Banks may revise their KYC policy in the light of the above instructions
and ensure strict adherence to the same.
4.
Please advise your Principal Officer to acknowledge receipt of this
circular letter.
Yours
faithfully
(Lily
Vadera)
Chief General Manager
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