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OVD for address verification of Individuals under IFSCA (AML/CFT and KYC) Guidelines, 2022
OVD for address verification of Individuals under IFSCA (AML/CFT and KYC) Guidelines, 2022
The International Financial Services Centres Authority (IFSCA) has issued a detailed guideline (IFSCA (AML, CFT and KYC) Guidelines, 2022) around anti-money laundering and combating of terrorism financing, laying down the AML/CFT measures, including the “Know Your Customer” process the IFSCA regulated entities must follow. The KYC process includes obtaining information about the customer’s address and verifying the same using reliable, independent sources. In this context, the guidelines prescribe a list of documents acceptable as Officially Valid Documents (OVD) for address verification.
The regulated entities must ensure that the address details mentioned in the KYC form match the OVD shared by the customer for address verification.
Here is an infographic capturing the Officially Valid Documents for address verification of resident individuals and the foreign natural person.
AML India is an AML Consultancy firm providing a comprehensive range of AML support to the regulated entities licensed with IFSCA. AML India supports the IFSCA-regulated entities in conducting enterprise-wide risk assessments and developing robust AML/CFT policies, procedures, and controls, including solid customer identification and verification process (Customer Due Diligence).
What is the full form of OVD?
OVD stands for Officially Valid Document. It is the defined term under the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 for the documents a reporting entity may accept as proof of a customer’s identity and address.
OVD is a legal category, not a general description. A document is either on the list, or it is not, regardless of how official it looks. The same term is used across RBI, SEBI, IRDAI, PFRDA and IFSCA instruments, which is why the list is consistent across banks, brokers, insurers and IFSC entities.
What are the OVD documents?
The officially valid documents are the passport, the driving licence, proof of possession of an Aadhaar number, the Voter’s Identity Card issued by the Election Commission of India, a job card issued under NREGA signed by a State Government officer, and a letter issued by the National Population Register containing name and address details. Equivalent e-documents of each of the above are also accepted.
Where Aadhaar is used, it is treated as proof of possession of the Aadhaar number, with the number redacted where authentication is not required.
Is PAN an OVD?
No. A PAN card is not an officially valid document. It is furnished separately from an OVD where PAN or Form 60 is required, and it establishes tax identity rather than serving as proof of identity and address for KYC purposes.
Treating PAN as an OVD is one of the more common KYC file defects found on review, because it leaves the file without a valid identity and address document. Where a customer offers only PAN, the entity must still collect one of the six OVDs or apply the simplified measures route where permitted.
What is OVD in a KYC form?
The OVD field in a KYC form asks which officially valid document you are submitting to prove your identity and address. You select the document type, such as passport, driving licence, Aadhaar, Voter ID, NREGA job card or NPR letter, and give its number. The form usually also has an OVD issue date and OVD expiry date field. An expired OVD is not acceptable and triggers fresh CDD, and if the OVD you submit does not show your current address, you supply a deemed OVD for address separately. The form has a distinct section for this.
What is a deemed OVD for address?
A deemed OVD is a document accepted for the limited purpose of proving address when your officially valid document does not carry your current address. It is a temporary bridge, not a substitute for an OVD.
Accepted deemed OVDs may include a utility bill not more than two months old (electricity, telephone, post-paid mobile, piped gas, water), property or municipal tax receipt, certain pension payment orders, and an employer allotted accommodation letter, subject to the applicable sectoral KYC requirements.
Where a deemed OVD is used, the customer must provide an updated OVD showing the current address within three months of using a deemed OVD, or the file falls out of compliance. The reporting entity should track such cases to ensure the updated OVD is obtained within the required timeframe.
What is an OVD address?
An OVD address is the address printed on your officially valid document. It is the address a reporting entity records unless you separately provide a deemed OVD showing a different current address. The OVD address and current address should not be treated as interchangeable. Where they differ, the reporting entity should record and verify the applicable address in accordance with the requirements, and where the OVD address is permanent and the customer resides elsewhere, both should be captured. Recording only one is a frequent cause of failed address verification on review.
We are committed to assisting proper enforcement of AML and CFT regulations to regulated entities in India by designing a personalised AML framework – policies, internal controls, and procedures – and ensuring effective implementation of the same.
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