NHB had vide their Circular NHB (ND)/DRS/POL.13/2006 dated April 10, 2006 framed the guidelines on KYC & AML for all HFCs". Now NHB has vide letter no. NHB (ND)/DRS/Pol-No. 33/2010-11 dated October 11 ,2010 advised all HFCs to amend their existing policy framework. This KYC Policy is amended in pursuance of the letter cited above.
These guidelines would be applicable to lawyers and valuers empanelled with Repco Home Finance Limited.
The information sought from the customer will be in conformity with the extant KYC guidelines. Any other information apart from this, that is matters not covered under the guidelines would be separately sought after obtaining the customer consent.
While Dealing with Politically Exposed persons and customers who subsequently became Politically Exposed persons the Company would take Senior Management Approval for continuing the business relationship with such PEPs and the monitoring of transactions of such persons would be at an enhanced level.
The Company shall ensure that the adoption of customer acceptance policy and its implementation shall not become too restrictive and result in denial of housing finance companies' services to general public, especially to those, who are financially or socially disadvantaged.
Customer identification means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information.This shall be in accordance with Rule 9 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, The Procedure and Manner of Maintaining and Time for Furnishing information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. The Company would :
Repco Home Finance Limited shall obtain sufficient information necessary to establish, and satisfy, the identity of each new customer, whether regular or occasional and the purpose of the intended nature of relationship.This would be done by obtaining documents such as voter id,PAN number,passport etc. Satisfaction shall mean the competent authorities of the company shall ensure that due diligence observed based on the risk profile of the customer in compliance with the extant guidelines in place. The Company shall also ensure that there is no burdensome regime for the customers.The nature of documents /information would depend also on the type of customer (individual, corporate etc). For customers that are natural persons sufficient identification data to verify the identity of the customer, his address/location, and also his recent photograph shall be obtained. For customers that are legal persons or entities,the Company will,
(i) verify the legal status of the legal person/ entity through proper and relevant documents .
(ii) verify that any person purporting to act on behalf of the legal person/entity is so authorized and identify and verify the identity of that person .
For the aforesaid categories, this would be done by verifying the respective memorandum and articles of association and a board resolution in case of a company. For a partnership firm, the partnership deed, registration certificate of the firm and the power of attorney in favour of the person purporting to act on behalf of the firm shall be collected.
(iii) understand the ownership and control structure of the customer and determine who are the natural persons who ultimately control the legal person. For this purpose the shareholding pattern duly certified by a chartered accountant or company secretary shall be obtained and verified.In respect of entities such as trust,the trust deed and particulars of the author of the trust shall be verified.
3. Monitoring of Transactions:
High Risk accounts shall be subjected to intensive monitoring.Repco Home Finance shall maintain a record of transactions in the accounts and preserve and maintain the same as required in terms of section 12 of the PML Act, 2002. Transactions of suspicious nature and/or any other type of transaction notified under section 12 of the PML Act, 2002, shall be reported to the appropriate law enforcement authority.
Proper education would be imparted to ensure that the Customer appreciates the motives and objectives of collecting information under the KYC programmes
The Company shall pay special attention to any money laundering threats that may arise from new or developing technologies including on-line transactions that might favour anonymity, and take suitable measures as needed to prevent their use in money laundering schemes.
The Company will apply the KYC norms to all the existing customers on the basis of materiality and risk envisaged for the loan accounts. Transactions would be continuously monitored and unusual patterns would occasion a immediate review. In cases where the company is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, such accounts shall be terminated after issuing a due notice to the customer explaining the reasons for such a decision.Such decisions would be taken by the top management.
The Company does not have any subsidiaries and branches abroad.
The Executive Director of the Company acts as the Principal Officer He functions from the corporate office of the Company and oversees monitoring and reporting of all transactions and sharing of information as required under the law. A proper system of fixing accountability for serious lapses and intentional circumvention of prescribed procedures and guidelines shall also be ensured by the Company.
The Company has a system for proper maintenance and preservation of account information in a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent authorities. The Company will maintain for atleast ten years from the date of cessation of transaction between the company and the client, all necessary records of transactions, both domestic or international, which will permit reconstruction of individual transactions (including the amounts and types of currency involved if any) so as to provide, if necessary, evidence for prosecution of persons involved in criminal activity.
The Company will maintain proper records pertaining to the identification of the customer and his address (e.g. copies of documents like passports, identity cards, driving licenses, PAN, utility bills etc.) obtained while opening the account and during the course of business relationship would be preserved for at least ten years after the business relationship is ended.
The Company shall report information relating to cash and suspicious transactions to the Director, Financial Intelligence Unit-India (FIU-IND) at the following
New Delhi -110021
(a) The information in respect of the transactions referred to in clause(A), (B) and (BA) of sub-rule (1) of rule 3 of the PML Rules ( i.e. clauses (i) , (ii) and (iii) referred to in Paragraph 19 supra) would be submitted to the Director every month by the 15th day of the succeeding month.
(b) The information in respect of the transactions referred to in clause(C) of sub-rule (1) of rule 3 of the PML Rules ( i.e. clause(iv) in Paragraph 19 supra) would be furnished promptly to the Director in writing, or by fax or by electronic mail not later than seven working days from the date of occurrence of such transaction.
(c) The information in respect of the transactions referred to in clause(D) of sub-rule (1) of rule 3 of the PML Rules ( i.e. clause(v) in Paragraph 19 supra) would be furnished promptly to the Director in writing, or by fax or by electronic mail not later than seven working days on being satisfied that transaction is suspicious.
Cash transactions or series of integrally connected cash transactions would be reported by 15th of the month succeeding the month of reporting the transaction. Suspicious transactions and transactions involving counterfeit notes would be reported within seven days of the occurrence.
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