Master Circular on Know Your Customer (KYC) Norms/Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT) Obligations of Banks Under PMLA of 2002

India

(enacted in 2009)

Master Circular (DBOD. AML. BC. No. 2/14 .01.001/2009-10) is a consolidation of the instructions on Know Your Customer (KYC) norms, anti-money laundering (AML) standards and combating of financing of terrorism (CFT) obligations of banks under the Prevention of Money Laundering Act (PMLA) of 2002 issued by the Reserve Bank of India up to June 30, 2009.

This circular is organized as follows:

  • Section 1 Introduction:
    • 1.1 KYC/AML/CFT;
    • 1.2 Definition of Customer;
  • Section 2 Guidelines:
    • 2.1 General;
    • 2.2 KYC Policy;
    • 2.3 Customer Acceptance Policy;
    • 2.4 Customer Identification Procedure;
    • 2.5 Customer Identification Requirements – Indicative guidelines;
    • 2.6 Small deposit accounts;
    • 2.7 Monitoring of transactions;
    • 2.8 Closure of Accounts;
    • 2.9 Risk Management;
    • 2.10 Introduction of new technology – credit/debit/smart/gift card;
    • 2.11 Combating Financing of Terrorism;
    • 2.12 Correspondent Banking;
    • 2.13 Applicability to branches and subsidiaries outside India;
    • 2.14 Wire Transfers;
    • 2.15 Principal Officer;
    • 2.16 Maintenance of records of transactions/Information to be preserved/maintenance and preservation of records/Cash and Suspicious transactions reporting to Financial Intelligence Unit-India (FIU-IND);
    • 2.17 Cash and Suspicious Transaction Report;
    • 2.18 Customer Education/Training of Employees/Hiring of Employees; and
  • Section 3 – Annex.

This circular consolidates the following 27 circulars:
1. DBOD.BP.BC.92/C.469-76
2. DBOD.GC.BC.62/c.408(A)/87
3. DBOD.BP.BC.114/C.469 (81)-91
4. DBOD.BC.20/17.04.001/92
5. DBOD.BP.BC.60/21.01.023/92
6. DBOD.FMC.No.153/27.01.003/93-94
7. DBOD.GC.BC.193/17.04.001/93
8. DBOD.GC.BC.202/17.04.001/93
9. DBOD.No.GC.BC.46/17.04.001
10. DBOD.BP.BC.106/21.01.001/94
11. DBOD.BP.BC.57/21.01.001/95
12. DBOD.BP.BC.102/21.01.001/95
13. DBOD.BP.BC.42/21.01.001/96
14. DBOD.No.BP.BC.12/21.01.023/98
15. DBS.FGV.BC.56.23.04.001/98-99
16. DBOD.COMP.BC.No.130/07.03.23/2000-01
17. DBOD.BP.52/21.01.001/2001-02
18. DBOD.AML.BC.89/14.01.001/2001-02
19. DBOD.AML.BC.No.102/14.01.001/2001-02
20. DBOD.AML.BC.18/14.01.001/2002-03
21. DBOD.NO.AML.BC.58/14.01.001/2004-05
22. DBOD.NO.AML.BC.28/14.01.001/2005-06
23. DBOD.NO.AML.BC.63/14.01.001/2005-06
24. DBOD.AML.BC.No.77/14.01.001 /2006-07
25. DBOD.AML.BC.No. 63/14.01.001/2007-08
26. DBOD.AML.BC.No. 85/14.01.001/ 2007-08
27. DBOD.AML.BC.No.12/14.01.001/2008-09