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KYC Know Your Customer ICICI Bank

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                                   Know Your Customer - KYC

               Information for Customers intending to open bank accounts with us


As per the Prevention of Money Laundering Act, 2002 and the Rrules mentioned made therein,
-under require, every banking company, financial institution and intermediary, as the case may
be, shallare required to, at the time of commencement of an account-based relationship and/or
carrying out a financial transaction as specified under regulations, identify its clients, verify their
identity and obtain information on the purpose and intended nature of the business relationship
and carrying out a financial transaction as specified under regulations .


TheAccordingly, the Reserve Bank of India (RBI) has advised banks to follow a the '(KYC)
'Know Your Customer guidelines', wherein certain personal information of the account-opening
prospect or the customer is obtained. The oObjective of doing so is to enable the Bank to have
positive identification of its customers. This is also done in the interest of customers, for the
purpose of to safeguarding their hard earned money.KYC also ensures making reasonable
efforts to determine true identity and beneficial ownership of accounts, source of funds, the
nature of customer’s business, reasonableness of operations in the account in relation to the
customer’s business, etc. which in turn helps the banks to manage their risks prudently.
Objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally
by criminal elements for money laundering.




The KYC guidelines of RBI mandate banks to collect three type of proofs from their customers.


They are :-


        a) Recent Photograph
       b) Proof of identity
       c) Proof of address Accordingly, ICICI Bank has framed its KYC procedure which states
       that . aAccording to which, a photograph, and documentary proof of personal
       identification and an address proof are required to be provided by the customer to the
       Bank..


OurICICI Bank's KYC procedure specifies certain commonly available documents as proof of            Formatted

personal identification and address proof, so as to not to cause inconvenience to those             Formatted
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intending to open bank accounts in our Bankwith us.
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The Account Opening Form provides the nature of documents required /and the procedure to be
followed for the opening of a new account. You may also log in on to our website
www.icicibank.com for such information, which is displayed product wise .


Our Branch officials at the Account Opening Desk / Branch Manager will also be able to provide
guidance regarding the different types of documents that are acceptable for opening any new
account.


We request your kind co-operation in providing the required documents for opening new
accounts to enable us to adhere to the KYC policy.
What is KYC?KYC is an acronym for “Know your Customer”, a term used for the customer
identification process. It involves making reasonable efforts to determine true identity and
beneficial ownership of accounts, source of funds, the nature of customer’s business,
reasonableness of operations in the account in relation to the customer’s business, etc. which in
turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to
prevent banks being used, intentionally or unintentionally by criminal elements for money
laundering.What is KYC Policy?As per RBI guidelines issued vide their circular dated
29/11/2004from time to time, all banks are required to formulate a KYC Policy with the approval
of their respective boards. The KYC Policy consists of the following four key elements.1)
Customer Acceptance Policy2) Customer Identification Procedures3) Monitoring of
Transactions4) Risk Management.What is Customeris Customer Acceptance Policy?Customer
Acceptance Policy refers to the general guidelines followed by banks in allowingCustomer’s to
open an accounts with them. Generally the guidelines stipulate that no accounts shall
beshallcan be opened in with anonymous or fictitious names or when the identity of the
customer matches with any person who hasith a known criminal background or banned entities.
Similarly accounts should not be opened when the bank is unable to verify the identity and/or
obtain documents required as per the bank’s policy.What is the Customer Identification
Procedure?Customer iIdentification means refers to the process of identifying the customer and
verifying his/her identity by usingwith the help of reliable, independent source documents, data
or information. Banks have been advised to lay down a Customer Identification Procedure to be
carried out at different stages i.e. while establishing a banking relationship; carrying out a
financial transaction or when the bank has a doubt about the authenticity/veracity or the
adequacy of the previously obtained customer identification data.Who is a customer of the
BankFor whom Bank should obtain complete KYC?


For the purpose of the KYC Policy, a Customer is defined as:
      A person or entity that maintains an account and/or has a business relationship with the
       Bank;
      One on whose behalf the account is maintained (i.e. the beneficial owner);
      Beneficiaries of transactions conducted by professional intermediaries, such as Stock
       Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and;
      Any person or entity connected with a financial transaction, which can pose significant
       reputation or other risks to the Bank, say, a wire transfer or issue of a high value
       demand draft as a single transaction.


Why does the Bank ask you for proof of your identity and address?


The identification of a customer is a very critical process, with a view to protect the customer
interests by preventing from fraudsters who may use the name, address and forge signature to
undertake benami / illegal business activities, encashment of stolen drafts, cheques, dividend
warrants, etc. This also helps to safeguard banks from unwittingly used for the transfer of
deposit of funds derived from criminal activity or for financing terrorism. Identification of
customers will also help to control financial fraundsfrauds, identify money laundering and
suspicious activities, and for scrutiny / monitoring of large value cash transactions.


Are KYC requirements new?
No, KYC requirements have always been in place and Banks have been taking KYC documents
in accordance with the guidelines issued by RBI from time to time. RBI has revisited the KYC
guidelines in the context of recommendations made by the Financial Action Task Force (FATF)
on Anti Money Laundering standards and on Combating Financing of Terrorism and enhanced
the KYC standards in line with international benchmarks since India is a member of FATF.


Is KYC mandatory?


Yes.


It is a regulatory and legal requirement.


In terms of the guidelines issued from time to time by the Reserve Bank of India (RBI) on Know
Your Customer [KYC] Standards – Anti Money Laundering [AML] Measures, all banks are
required to put in place a comprehensive policy framework covering KYC Standards and AML
Measures.


Regulatory: Legal: The Prevention of the Money Laundering Act, 2002 (PMLA) which came into
force from July 1, 2005 (after “rules” under the Act were formulated and published in the Official
Gazette)and Rules made there under also requires Banks, Financial Institutions and
Intermediaries to ensure that they follow certain minimum standards of KYC and AML, as laid
down in the Act and the ‘“rules’” framed there under.


Anti Money Laundering- What you must know?


Money laundering has become a pertinent problem worldwide threatening the stability of various
regions by actively supporting and strengthening terrorist networks and criminal organisations.
The links between money laundering, organised crime, drug trafficking and terrorism pose a risk
to financial institutions globally.


What is Money Laundering and Financial Terrorism?
Money laundering refers to conversion of money illegally obtained to make it appear as if it
originated from a legitimate source. Money laundering is being employed by launderers
worldwide to conceal criminal activity associated with it such as drugs /arms trafficking,
terrorism and extortion. Financial Terrorism means financial support to, in any form of terrorism
or to those who encourage, plan or engage in terrorism. Money launderers send illicit funds
through legal channels in order to conceal their criminal origin while those who finance terrorism
transfer funds that may be legal or illicit in original in such a way as to conceal their source and
ultimate use, which is to support Financial Terrorism.What are the features to be verified and
documents required to be obtained fromcustomers?The features to be verified and documents
that may are required to be obtained for different categories of customers, vary dependinging
on the perceived riskupon the type of customers. The Account Opening Form provides the
nature of documents required / procedure to be followed for opening a new account. You may
also log in to our website www.icicibank.com for such information which is displayed product-
wise .wise.Our Branch officials at the Account Opening Desk / Branch Manager will also be able
to provide guidanceguide you regarding the different types of documents acceptable for opening
any new account.


Once KYC requirements are complied with while opening the account, whether the bank
can again ask for KYC compliance from me?


Yes. To ensure that the latest details of customer identification are available, banks have been
instructed from time- to- time by RBI to periodically update the customer identification data
based upon the risk category of the customers.


Banks create a customer profile based on details about the customer like social/financial status,
nature of business activity, information about his clients’ business and their location, the
purpose and reason for opening the account, the expected origin of the funds to be used within
the relationship and details of occupation/employment, sources of wealth or income, expected
monthly remittance, expected monthly withdrawals etc. When the transactions in the account
are observed not consistent with the profile, the bank may ask for any additional details /
documents as required. This is just to confirm that the account is not being used for any Money
Laundering/Terrorist/Criminal activities.
Periodic Updatione of KYC documents as per RBI Guidelines .


According to the Reserve Bank of India's (RBI's) guidelines on KYC (Know Your Customer)
norms, banks are required to periodically update identification data of their customers, including
the customer's photograph, proof of identity and proof of address. Updating KYC details
regularly also ensures the security of your accounts ,accounts, Toto keep your Bbank Aaccount
compliant with RBI's KYC guidelines. It is necessary for each customer to update the Bank
about his/her latest communication details.


In order to meet the above RBI requirements for your account(s), we request you to give us the
following self-attested documents and the completed Customer Identification Data Updation
Form. The Customer Identification Data Updation Form is available on
http://www.icicibank.com/Personal-Banking/pdf/kyc-form.pdf and also at any of the ICICI Bank
branches.Anti MoneyAnti LaunderingMoney Laundering- What youWhat you must know
?know?Money laundering has become a pertinent problem worldwide threatening the stability of
various regions by actively supporting and strengthening terrorist networks and criminal
organiszations. The links between money laundering, organiszed crime, drug trafficking and
terrorism pose a risk to financial institutions globally.What is Money Laundering and Financial
Terrorism? Money laundering refers to conversion of money illegally obtained to make it appear
as if itoriginated from a legitimate source. Money laundering is being employed by
launderersworldwide to conceal criminal activity associated with it such as drugs /arms
trafficking,terrorism and extortion.Financial Terrorism means financial support to, in any form of
terrorism or to those whoencourage, plan or engage in terrorism.Money launderers send illicit
funds through legal channels in order to conceal their criminalorigin while those who finance
terrorism transfer funds that may be legal or illicit in original in such a way as to conceal their
source and ultimate use, which is to support Financial Terrorism.
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