Central KYC Registry Operating Guidelines

CENTRAL REGISTRY OF SECURITISATION ASSET RECONSTRUCTION AND SECURITY INTEREST OF INDIA (CERSAI)

CENTRAL KYC REGISTRY OPERATING GUIDELINES 2016

Version 1.1

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CENTRAL KYC REGISTRY OPERATING GUIDELINES 2016

The Government of India vide their Notification dated November 26, 2015 authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), set up under sub-section (1) of Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), to act as and to perform the functions of the Central KYC Records Registry under the said rules, including receiving, storing, safeguarding and retrieving the KYC records in digital form of a “client”, as defined in clause (ha) of sub-section (1) of Section 2 of the Prevention of Money-Laundering Act, 2002. The Central Government have also amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 vide Notification dated 7th July, 2015 for the purpose of establishment of Central KYC Registry. As per Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, Rule 9 (1A), every reporting entity shall within three days after the commencement of an account-based relationship with a client, file the electronic copy of the client's KYC records with the Central KYC Registry.

The Operating Guidelines in the regard are as under:

I. Definitions

In these guidelines, unless the context otherwise requires, the terms defined herein shall bear the meanings assigned to them below –

• a) “Act” means the Prevention of Money Laundering Act, 2002.
• b) “Rules” means Prevention of Money Laundering (Maintenance of Records) Rules, 2005.
• c) “Central KYC Records Registry” (CKYCR) means an entity defined under 2(1) (aa) of the Rules.
• d) “Reporting Entity” means an entity defined under sub-section (wa) of section 2 of the Act.
• e) “Customer” means a client as defined under sub-section (ha) of sub-section 2 of the Act.
• f) “KYC” means the due diligence procedure prescribed by the regulator for identifying and verifying the proof of address, proof of identity and compliance with rules, regulations, guidelines and circulars issued by the regulator or any other statutory authority under the Act from time to time.
• g) “KYC identifier” means a unique identifier for the customer generated by the Central KYC Registry and notified to the reporting entities.
• h) “Operating Guidelines” means operating instructions made by the Central KYC Registry in co-ordination with the regulator/s.

All other words and expressions used but not defined in these guidelines shall have the same meaning as have been assigned to them under the Act or the Prevention of Money laundering (Maintenance of Records) Rules, 2005 or any statutory modification or re-enactment thereto, as the case may be.

II. Functions and Obligations of Central KYC Registry

The Central KYC Registry shall have the following functions and obligations:

• a) Shall have a secure electronic connectivity with the registered reporting entities. The web address of Central KYC Registry portal is https://www.ckycindia.in
• b) Shall have a secure data transmission link with the ID issuing authorities wherever feasible and use such electronic data, as permitted, and preserve it with the Central KYC Registry.
• c) Shall be responsible for electronically (i) storing (ii) safeguarding and (iii) retrieving the Know Your Customer (KYC) records and making such records available online to reporting entities or Director.
• d) Information updated about a customer shall be disseminated on request by Central KYC Registry to any reporting entity that avail the services of the Central KYC Registry in respect of the customer.
• e) The services of the Central KYC Registry will be available on payment of prescribed fee, in advance.
• f) Shall process the KYC records received from a reporting entity for de-duplication and issue a unique KYC Identifier for each client to the reporting entity.
• g) Ensure that the integrity of the electronic systems for records is maintained and accessible at all material times.
• h) Take all precautions necessary to ensure that the electronic Know Your Customer (KYC) records are not lost, destroyed or tampered with and that sufficient back up of electronic records is available at all times at a different place.
• i) Take all reasonable measures to prevent unauthorized access to its KYC database.

III. Functions and obligations of the reporting entity

The reporting entity shall have the following functions and obligations:

• a) Reporting entities shall be required to register with the Central KYC Registry in accordance with the processes and instructions issued.
• b) While commencing an account based relationship, reporting entity shall verify the identity of the customer and perform the initial due diligence of the customer.
• c) Where a customer submits a KYC Identifier to a reporting entity, then such reporting entity shall download the KYC records from the Central KYC Registry by using the KYC Identifier and shall not require a customer to submit the documents again unless
  • i) There is a change in the information of the customer as existing in the records of Central KYC Registry.
  • ii) The current address of the client is required to be verified.
  • iii) The reporting entity considers it necessary in order to verify the identity or address of the client, or to perform enhanced due diligence or to build an appropriate risk profile of the client.
• d) The reporting entity shall not use the KYC data of a customer obtained from the Central KYC Registry for purposes other than verifying the identify or address of the client and shall not transfer KYC records or any information contained therein to any third party unless authorised to do so by the client or by the Regulator or by the Director.
• e) The reporting entity which performed the last KYC verification or sent updated information in respect of a client shall be responsible for verifying the authenticity of the identity or address of the client.

The prescribed fee is payable by the reporting entity for each type of transaction and Central KYC Registry will collect such fees from the reporting entities, in advance.

IV. Operating Guidelines to the Reporting Entities

• a) Central KYC Registry application can be accessed by registered/authorised institutions or other notified institutions under the Prevention of Money Laundering Act or rules framed by the Government of India or any Regulator (RBI, SEBI, IRDA and PFRDA) thereunder.
• b) Every reporting entity has to register itself on the Central KYC Registry portal (https://www.ckycindia.in)with 2 Primary Users who in turn can create more users (makers and checkers).

A. Registration

Registration process entails the following:

• i. Entry of the requisite details on the registration screen by the Nodal Officer/Authorised Signatory of the reporting entity and online submission of the same.
• ii. Upon submission, reference ID will be generated and an email shall be sent to Nodal Officer/Authorised Signatory's registered email ID. Reporting entity can check the current registration status on the CKYC Portal by the reference number generated.
• iii. Duly signed form along with following supporting documents shall be sent to Central KYC Registry:
  • • Duly Signed institution registration form
  • • Regulator License/Certificate/Notification
  • • PAN Card of the entity
  • • Corporate Identification Number (in case regulator issues multiple licenses to an entity)
  • • Registration Certificate (In case of Co-operative Banks/societies)
  • • Authorization letter by Competent Authority for Admin users
  • • Certified copy of photo identity card of the Admin users issued by the institution
  • • Certified copy of the proof of the identity of the Admin users