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An Anti-Money Laundering (AML) Compliance Services Provider in India
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Phone No: +91 98248 84900
Email Id: [email protected]
Contact details
Phone No: +91 98248 84900
Email Id: [email protected]
Documents Required for Identity Verification of the Legal Person under IFSCA (AML/CFT and KYC) Guidelines, 2022
Documents Required for Identity Verification of the Legal Person under IFSCA (AML/CFT and KYC) Guidelines, 2022
The International Financial Services Centres Authority (AML, CFT, and KYC) Guidelines, 2022, has recommended the list of documents to be obtained for verification of the identity of the legal entity.
Customer due diligence is a crucial part of AML/CFT compliance, and customer ID verification is one of its essential elements. It’s a known typology to carry out transactions without revealing the true identity of the ultimate beneficiary.
It is essential to obtain the prescribed documents to perform Customer Due Diligence. Information requirements differ for different legal entities such as companies, partnership firms/limited liability partnerships, trusts, and unincorporated associations/bodies.
In the case of a legal entity, the identity of the ultimate beneficial owner also needs to be verified before executing or establishing any transaction with the legal entity.
Check the above-added infographic capturing the documents to be obtained for verification of the legal entity.
What are AML documents?
AML documents are the records a reporting entity collects and maintains to demonstrate compliance with its anti-money laundering obligations. They include customer identification records, risk assessments, screening results, transaction records and internal reports.
They generally cover two areas: customer records, such as OVDs, beneficial ownership information, PEP declarations and risk categorisation; and AML programme records, such as the AML/CFT policy, risk assessment, training records and audit reports. The Retention period begins from the prescribed trigger event, rather than from the date of collection. This may be completion of a transaction, end of the business relationship, or account closure, depending on the applicable record and regulatory requirement.
What documents are required for KYC of a legal person?
For a legal person, obtain documents establishing the entity’s legal existence, the identity of its authorised signatories, and the beneficial owners. The entity’s registration certificate alone is not sufficient.
Typically, the required documents include the certificate of incorporation or registration, constitutional documents, PAN, board resolution or authorisation for the persons operating the account, and OVDs for each authorised signatory. Beneficial ownership must also be identified and verified separately. Providing shareholding pattern is not sufficient; the reporting entity must identify and verify the natural persons who ultimately own or control the legal person.
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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