All Payment System Providers, System Participants and any prospective prepaid payment instrument Issuer Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of PSOs under Prevention of Money Laundering Act (PMLA), 2002 – e-KYC Service of UIDAI – Recognizing on-line Aadhaar authentication (electronic verification process) to be accepted as an ‘Officially Valid Document’ under PML Rules Please refer to our circular DPSS.No.2174/02.14.004/2010-11 dated March 23, 2011 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT) / Obligation of banks under PMLA, 2002 which states that letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number as quoted under para 2 (d) of PML Rules, 2005 may be accepted as an ‘Officially Valid Document’. 2. In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC services. Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Further, the information containing demographic details and photographs made available from UIDAI as a result of e-KYC process (“which is in an electronic form and accessible so as to be usable for a subsequent reference”) may be treated as an ‘Officially Valid Document’ under PML Rules. In this connection, it is advised that while using e-KYC service of UIDAI, the individual user has to authorize the UIDAI, by explicit consent, to release her or his identity/address through biometric authentication to the Payment System Operators (PSOs). The UIDAI then transfers the data of the individual comprising name, age, gender and photograph of the individual, electronically to the PSOs, which may be accepted as valid process for KYC verification. The broad operational instructions to PSOs on Aadhaar e-KYC service is enclosed as Annex. 3. PSOs are advised to have proper infrastructure (as specified in Annex) in place to enable biometric authentication for e-KYC. 4. Physical Aadhaar card/letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an ‘Officially Valid Document’. 5. PSOs authorised under the Payment and Settlement Systems Act, 2007 (PSS Act) may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same
Posted on: Wed, 30 Oct 2013 04:51:25 +0000
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