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TMI BlogCustomer Due DiligenceX X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction is being conducted. It also incorporates those persons who exercise ultimate effective control over a legal person or arrangement. (b) Verify the customer s identity using reliable, independent source documents, data or information; (c) Identify beneficial ownership and control, i.e. determine which individual(s) ultimately own(s) or control(s) the customer and/or the person on whose behalf a transaction is being conducted; (d) Verify the identity of the beneficial owner of the customer and/or the person on whose behalf a transaction is being conducted, corroborating the information provided in relation to (c); and (e) Conduct ongoing due diligence and scrutiny, i.e. perform ongoing scrutiny of the transactions and acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her degree of due diligence and regular update of KYC profile. c) Documentation requirement and other information to be collected in respect of different classes of clients depending on perceived risk and having regard to the requirement to the Prevention of Money Laundering Act 2002, guidelines issued by RBI and SEBI from time to time. d) Ensure that an account is not opened where the intermediary is unable to apply appropriate clients due diligence measures / KYC policies. This may be applicable in cases where it is not possible to ascertain the identity of the client, information provided to the intermediary is suspected to be non genuine, perceived non cooperation of the client in providing full and complete information. The ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.3 Risk-based Approach 5.3.1 It is generally recognize d that certain customers may be of a higher or lower risk category depending on circumstances such as the customer s background, type of business relationship or transaction etc. As such, the registered intermediaries should apply each of the customer due diligence measures on a risk sensitive basis. The basic principle enshrined in this approach is that the registered intermediaries should adopt an enhanced customer due diligence process for higher risk categories of customers. Conversely, a simplified customer due diligence process may be adopted for lower risk categories of customers. In line with the risk-based approach, the type and amount of identification information a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain whether new clients should be classified as CSC or not. 5.5 Client identification procedure : The Know your Client (KYC) policy should clearly spell out the client identification procedure to be carried out at different stages i.e. while establishing the intermediary client relationship, while carrying out transactions for the client or when the intermediary has doubts regarding the veracity or the adequacy of previously obtained client identification data. The client should be identified by the intermediary by using reliable sources including documents / information. The intermediary should obtain adequate information to satisfactorily establish the identity of each new client and the purpose of the intended natu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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