Rule 10 - Maintenance of the records of the identity of clients. - Prevention of Money-Laundering (Maintenance of Records) Rules, 2005

1 [Maintenance of the records of the identity of clients. 10. 2 [(1) Every reporting entity shall maintain the physical copy of records of the identity of its clients obtained in accordance with rule 9, after filing the electronic copy of such records with the Central KYC Records Registry.] 3 [(2) The records of the identity of clients shall be maintained by a reporting entity in the manner as may be specified by the Regulator from time to time.] (3) Where the reporting entity does not have records of the identity of its existing clients, it shall obtain the records within the period specified by the regulator, failing which the reporting entity shall close the account of the clients after giving due notice to the client. Explanation .-For the purpose of this rule, the expression records of the identity of clients shall include updated records of the identification data, account files and business correspondence 4 [ and result of any analysis undertaken under rule 3 and rule 9 ] .] ------------------------- Notes: 1. Substituted by the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2013, w.e.f. 27-8-2013. Before Substitution its amended Vide Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) (Amendment) Rules, 2005, w.e.f. 13-12-2005, Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2009, w.e.f. 12-11-2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Second Amendment Rules, 2010, w.e.f. 16-6-2010, before it was read as: 10. Maintenance of the records of the identity of clients.-( 1) Every banking company or financial institution or intermediary, as the case may be, shall maintain the records of the identity of its clients. (2) The records of the identity of clients shall be maintained in hard and soft copies in a manner as may be specified by its Regulator from time to time. (3) The records of the identity of clients shall be maintained for a period of ten years from the date of cessation of the transactions between the client and the banking company or financial institution or intermediary, as the case may be. Explanation .-For the purposes of this rule,- (i) the expression records of the identity of clients shall include records of the identification data, account files and business correspondence; (ii) the expression cessation of the transactions means termination of an account or business relationship. 2. Substituted Vide Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, w.e.f. 7-7-2015. Before it was read as: (1) Every reporting entity shall maintain the records of the identity of its clients obtained in accordance with rule 9. 3. Substituted Vide Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, w.e.f. 7-7-2015. Before it was read as: (2) The records of the identity of clients shall be maintained in a manner as may be specified by its regulators from time to time. 4. Inserted vide Notification No. G.S.R. 652(E) dated 04-09-2023