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Corporate Laws Central Ministry of Finance Prevention of Money-laundering Act, 2002

Amendment to the Master Direction - Know Your Customer (KYC) Direction, 2016

06-Nov-2024 | RBI/2024-2025/87 DOR.AML.REC.49/14.01.001/2024-25

RBI has issued amendments to the Master Direction - Know Your Customer (KYC) Direction, 2016, effective from 6th November 2024. By virtue of this amendment, KYC directions are aligned with the instructions with the recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 vide Gazette Notification dated July 19, 2024. Further, instructions in regard to corrigendum dated April 22, 2024, issued by the GOI to the Order dated February 2, 2021 on the Procedure for implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967 are incorporated. Key highlights- 1. There shall be no need for fresh Customer due diligence exercise in regard to identification of customer, if the customer is already KYC compliant with the Regulated Entity (RE) and desires to open another account or avail any other product or service from the same RE. (Paragraph 10(f)) 2. Explanation - "High risk accounts have to be subjected to more intensified monitoring" is applicable to Paragraph 37 (a), 37(b). 3. The designation of Central Nodal Officer for the UAPA has been changed from Additional Secretary to Joint Secretary (Annex II of the MD on KYC). Kindly refer to the attached document for more information.

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