KYC

KNOW YOUR CUSTOMER[KYC] / Customer

Due Diligence [CDD] Norms

Know Your Customer• Purpose• To prevent money laundering and combating of

financing in terrorism under PML Act-2002 and CFT

• Deposits are classified under three categories

• (1) Monthly average balance below Rs.50000/- It includes

• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian

• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

PPT 5.1.1

Know Your Customer• (2) Monthly average balance between

Rs.50,000/- and Rs.10 lakhs• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian

• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

• (3) Monthly average balance above Rs10 lakhs• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian

• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

PPT 5.1.1

Documents for opening of A/c

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph

Identity Proof Address Proof

Source of Fund

Physical Verification of address

Category-1 Required Copy of PAN card, Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill or letter from any recognized authority

Not Required

Not Required

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph

Identity Proof Address Proof

Source of Fund

Physical Verification of address

Category-2 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill

Not Required

Not Required

Documents for opening of A/c

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph

Identity Proof Address Proof

Source of Fund

Physical Verification of address

Category-3 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill

Copy of document proving source from which funds received

Address should be verified from State Govt/ Gram Panchayat / Postman of that area before opening A/c. Also followed in case of Transfer of A/c from other office

Documents for opening of A/c

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph Identity and Address Proof

A/C opening form or purchase application

Category-1 3 copies taken. One copy attested and pasted on A/c opening form or application for purchase, second attested and pasted in the passbook or certificate, third pasted in the Register maintained as per Rule-37(1) of POSB Man. Vol.I

Attached with A/c opening form or purchase application

Kept in guard file duly attested by PM / APM / SPM and preserved for 10 years after close of A/c or discharge of certificate

Record Keeping

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph Identity and Address Proof

A/C opening form or purchase application

Category-2 3 copies taken. One copy attested and pasted on A/c opening form or application for purchase, second attested and pasted in the passbook or certificate, third pasted in the Register maintained as per Rule___of POSB Man. Vol.I

Attached with A/c opening form or purchase application

Kept in guard file duly attested by PM / APM / SPM and preserved for 10 years after close of A/c or discharge of certificate

Record Keeping

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph Identity, Address and Source of funds

proof

A/C opening form or purchase application

Category-3 3 copies taken. One copy attested and pasted on SB-3 or application for purchase, second attested and pasted in the passbook or certificate, third pasted in the Register

Copy of ID proof, address proof and Source of funds attached with A/c opening form or purchase application. Address proof should have a remark “Address Physically Verified” with full dated signatures of verifying authority

Kept in guard file duly attested by PM / APM / SPM and preserved for 10 years after close of A/c or discharge of certificate

Record Keeping

• All transactions of deposit or withdrawal of Rs.50,000 or abovea. In charge of PO will prepare LoT

(Deposit/Issue/Withdrawal/Discharge) in accounts and certificates and certificates involving amount of Rs.50,000/- or above

b. The above list should be sent to Head of Division on monthly basis on 3rd working day of the subsequent month

c. Head of Division will send post office-wise list of such transactions of his division to the head of circle by 5th working day of the subsequent month

PPT 5.1.1

Method of Monitoring of Transactions

• All transactions of deposit or withdrawal of Rs.50,000 or aboved. Head of the Circle will send the consolidated post

office-wise list of such transactions to the Principal Officer at Directorate

PPT 5.1.1

Method of Monitoring of Transactions

• Any transaction (Deposit/withdrawal/Issue/Discharge) of account or certificate with amount of Rs.10 lakh and above in a single account / certificate or if such transaction with total amount above Rs.10 lakh occurred in the name of same person in an account / certificate in a month

a. The channel of submission of such report will remain the same but list of such transaction is to be submitted on the next working day to the Divisional Head / Head of Circle / Principal Officer

PPT 5.1.1

Method of Monitoring of Transactions

• Suspected transaction where there is any doubt about linkage of the transaction with any terrorist outfit or where there is any suspicion about completing the CDDa. All suspected transactions should be reported through the

same channel immediately with full details of the customer. If any suspicion during CDD/KYC, the account should not be opened or certificate should not be issued and customer details should immediately be reported through the same channel

PPT 5.1.1

Method of Monitoring of Transactions

PPT 5.1.1

Instructions for existing account /certificate holders

Types of precautionary measures to

be taken

Detailed procedure

CDD / KYC If difference in signature of depositor / holder at the time of payment of a transaction of Rs.50,000/- or above, full CDD/KYC documents should be taken as prescribed for category-1 for the new account / certificate holders

Record Keeping

Same procedure as prescribed for new account / certificate holders

Reporting In case of existing account / certificate holders also, the reporting procedure as prescribed for new account / certificate holders will be followed

Suspected transaction

In case of any suspected transaction of an existing account / certificate holder, report should immediately be sent through the same channel as prescribed for new account / certificate holder

• If customer submits Form-60 or 61 in duplicate while opening an A/c or purchasing a certificate, copy of PAN should not be insisted

• Copy of declaration sent to Income Tax Officer of the concerned area once in a month

• If the existing depositor or holder has already given KYC documents, he is not required to furnish documents again while opening another new account or purchase certificates

• For such customers, Customer Identification file is maintained assigning a serial No.

• Details of all investments made in same post office are kept in the file PPT 5.1.1

Know Your Customer

• The Customer Identification file is kept in the custody of Supervisor / APM / PM

• CIN number should be noted on the passbook or certificate by the Postmaster for further reference

• The GDS BPM / SPM should prepare a register of such depositor s or holders and while attending post office for opening of new account or purchase of certificate, the details of such investments should be noted

• CDD/KYC documents are also required for suspicious accounts opened for money laundering or terrorist financing

PPT 5.1.1

Know Your Customer