Financial Intelligence Centre (FIC) introduced new ways to be used by accountable institutions in identifying and verifying customers’ identities by.
The KYC (KNOW YOUR CUSTOMER) process starts when you welcome a new clients into your business and establish a business relationship with them.
Section 20A of the FIC Act prohibits an accountable institution from establishing a business relationship or concluding a single transaction with an anonymous client or a client with an apparent false or fictitious name.
Section 21 of the Act, read with Regulations 3 and 4, forces all accountable institutions to identify and verify clients before they enter into a business relationship or conclude a single transaction, as well as clients who entered into such contracts in the past.
This means that the client’s identity documentation, proof of, source of funds and/or income and whether the customer is a PIP must be obtained / determined at all times irrespective of the product or transaction involved.
You should obtain client consent to verify information using third party data sources. A client needs to be aware of this and/or give consent for you to obtain this information.- Protection of Personal Information Act, 2013