Introduction
1.1
Know Your Customer (KYC) Norms/Anti Money Laundering (AML)
Measures/Combating Financing of Terrorism (CFT)/Obligations under PMLA,
2002 (amended from time to time) The objective of KYC/AML/CFT guidelines
is to prevent money laundering or terrorist financing activities by use
of Post Office Savings Bank intentionally or unintentionally by
criminal elements. KYC procedures also enable to post office Savings
Banks to know/understand their customers better which in turn help them
manage their risks prudently.
1.2 Definition of Customer
for the purpose of KYC policy, a customer is defined as-
•
An individual that maintains an account and/or has a cash certificate
or has a business relationship with the Post Office Savings Bank.
• An individual on whose behalf the account is maintained (i.e beneficial owner).
2. Guidelines
2.1 General
All
Post Office Savings Banks should keep in mind that information
collected from the customer for the purpose of opening of account or
purchase of savings certificates is to be treated as confidential and
details thereof are not to be divulged for cross selling or any other
purposes.
2.2 KYC Policy
Under PMLA provisions, Post Office Savings Bank declares its KYC Policy on the following four elements:-
(a) Customer Acceptance Policy.
(b) Risk Management
(c) Customer Identification Procedure.
(d) Monitoring of Transactions; Recordkeeping and Reporting.
2.3 Customer Acceptance Policy (CAP)
(i) No account is opened in an anonymous or fictitious name/benami.
(ii)
Not to open an account or close an existing account where the Post
Office Savings Bank is unable to apply appropriate Customer Due
Diligence measures i.e unable to verify the identity and/or obtain
documents required as prescribed due to non- cooperation of the customer
or non-reliability of data/information furnished by the customer.
However, the customer should not be harassed and any decision to close
the account should be taken by the head of the Postal Division by giving
suitable notice to the customer.
KYC norms in POSB/SC under AML/CFT Full version can be download by following the link below.
