The Ministry of Communication has issued two circulars namely Master Circular 1 on AML/CFT norms applicable for Small Savings Schemes and Master Circular 2 Know Your Customer (KYC) / Anti Money Laundering (AML)/ Combating of Financing of Terrorism (CFT) Norms. Appendix I of the POSB (CBS) Manual (Corrected up to 31.12.2021) was amended.
Circular 1 stated that the Government Savings Promotion General Rules 2018 (GSPR) and National Savings Schemes Rules 2019 were notified by the Department of Economic Affairs in the Ministry of Finance and went into effect on December 18, 2019. The GSPR specified the necessary documentation as well as other optional documents that could be requested from depositors.
Additionally, it has been decided to issue revised guidelines on AML/CFT norms to be followed in the post offices with respect to National (Small) Savings Schemes in order to comply with the guidelines of Financial Intelligent Unit – India (FIU-IND) and Financial Action Task Force (FATF). As a result, Master Circular No. 2 of KYC/AML/CFT norms is attached herewith. All prior orders on the topic are superseded by this.
Circular 2 explains about Know Your Customer (KYC) Norms/Anti Money Laundering (AML) Measure/ Combating Financing of Terrorism (CFT)/Obligations under PMLA, 2002 (amended from time to time).
It contains guidelines, Customer Acceptance Policy, Categorization of Customers, Customer identification Procedure, Review of Customer Due Diligence, Operating Procedure, Monitoring of Transactions, Recordkeeping, Guidelines for the existing POSB Accounts / Savings Certificates holders opened/issued before the issue of this order.
The Customers are categorised as per the risk i.e., Low Risk, medium risk and high risk. Where the customer opens an account or applies for purchase of certificates or applies for credit of maturity/prematurity value of any existing savings instrument with an amount exceeding 10 lakhs and balance in all accounts and certificates does not exceed l0 lakh comes under the category of risk.
Under the Customer identification procedure, photographs, identity proof, attestation of photocopy of documents, address proof and other documents as stated are must. And for high risk customers, in addition to all these documents, proof of source of funds must be shown.
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