The necessity of financial institutions undertaking “know your customer” (KYC) checks on clients participating in the financial markets has been well established across the globe. The purposes of such KYC checks include preventing illicit transaction of monies within the banking and financial system, monitoring of suspicious transactions and detecting funding of terrorist organizations.
Partner
Cyril Amarchand Mangaldas
In India, the Prevention of Money Laundering Act, 2002 (PMLA), and the rules issued under it, set out the framework governing the manner in which banks, financial institutions and intermediaries should undertake KYC on every customer, starting from the time of commencement of an account-based relationship.
Pursuant to the PMLA, both the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have prescribed the KYC compliance which banks, non-banking financial companies and financial intermediaries need to be mindful of while accepting clients and undertaking transactions on their behalf.
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Cyril Amarchand Mangaldas is India’s largest full-service law firm. Shruti Rajan is a partner and Rohan Banerjee is a principal associate at the firm.
Peninsula Chambers,
Peninsula Corporate Park,
Lower Parel, Mumbai – 400 013 India
New Delhi | Bengaluru | Hyderabad |
Chennai | Ahmedabad
Contact details
Tel: +91 22 2496 4455
Fax: +91 22 2496 3666
Email: cam.mumbai@cyrilshroff.com
