AML & KYC Policy
1. INTRODUCTION
- Akshat Credit Co Operative Society Limited is committed to implementing effective measures to prevent money laundering and terrorist financing activities in accordance with the Prevention of Money Laundering Act, 2002 , and the guidelines issued by the Government Authorities from time to time.
- This KYC Policy outlines the Society's approach towards KYC measures and procedures in place to ensure compliance with the applicable laws and regulations.
2. POLICY OBJECTIVES
The objectives of the Society's KYC Policy are:
- To identify and verify the identity of the members, beneficial owners, and authorized signatories of the Society.
- To understand the nature of the business relationship and the transactions undertaken by the members.
- To identify and report any suspicious activities, including attempted or completed transactions that may involve money laundering, terrorist financing, or other illegal activities.
- To ensure compliance with the relevant laws, regulations, and guidelines.
3. KYC PROCEDURES
3.1 Member Acceptance Policy:
The Society will only accept members who have completed the KYC process and provided all the required documentation. The Society will conduct a risk-based assessment of the member's profile and transactions to determine the level of due diligence required.
- Aadhar is mandatory for all memberships in the Society
- Pan card to be collected from members at the time of membership as well ( for exceptional cases when Pan Card is not there form 60 to be taken from the member).
3.2 Customer Identification Procedure:
The Society will obtain the following information and documents for identification and verification purposes:
- For Individuals: Name, Address, Date of Birth, Photograph, PAN Card, Aadhaar Card, Passport, and other KYC documents as deemed necessary.
3.3 Risk Assessment:
The Society will conduct a risk assessment of the members based on the following criteria:
- Nature of Business Activities
- Geographical location of the member
- Reputation of the member
- Politically Exposed Persons (PEPs)
- Source of Funds
- Volume and Frequency of Transactions.
3.4 Ongoing Monitoring
The Society will continuously monitor the members' transactions and update their KYC information periodically. The Society will also verify the source of funds and the purpose of transactions.
- Nature of Business Activities
- Geographical location of the member
- Reputation of the member
- Politically Exposed Persons (PEPs)
- Source of Funds
- Volume and Frequency of Transactions.
4. AML PROCEDURES
4.1 Reporting Obligations
The Society will report any suspicious transactions to the Financial Intelligence Unit - India (FIU-IND) as per the guidelines issued by the RBI.
4.2 Record-Keeping
The Society will maintain proper records of all transactions and KYC documents for a minimum of 10 years as per the PMLA.
4.3 Training and Awareness
The Society will provide regular training to its employees and staff on AML and KYC policies and procedures.
4.4 Compliance Officer
The Society has assigned the COO to be the compliance Office as well who will be responsible for ensuring compliance with the PMLA and other relevant laws and regulations.
5. CONCLUSION
The Society recognizes the importance of implementing effective KYC policies and procedures to prevent money laundering and terrorist financing activities. The Society will review and update its policies and procedures periodically to ensure compliance with the applicable laws and regulations.