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SUMMARISED POLICY FRAMEWORK ON
KNOW YOUR CUSTOMER (KYC) NORMS AND ANTI MONEY LAUNDERING (AML) STANDARDS
OF NEDFi
NEDFi has framed the KYC policies, based mainly
on RBI’s guidelines, incorporating the following key elements :-
- Customer Acceptance Policy
- Customer Identification Procedure
- Monitoring of Transactions; and
- Risk Management
 Customer
Acceptance Policy
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NEDFi would not open an account and/or initiate
banking relationship in anonymous or fictitious / benami name(s) /
persons having connections with terrorists/terrorist organisation(s).
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NEDFi would not open new account or close an
existing account where it is unable to apply appropriate customer due
diligence measures, i.e., verify the identity and/or obtain documents
required due to non-cooperation of the customer or non-reliability of
the data/information furnished by the customer to the Bank.
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NEDFi would exercise due care before admitting
new borrowers so as to ensure that the identity of the customer does
not match with any person with known criminal background or with
banned entities.
Customer
Identification Procedure
NEDFi has put in place a detailed Customer
Identification Procedure and would obtain documents relating to
customer’s identity, his social / financial status, nature of business
activity engaged in and his clients or associates including their
location, etc.
Monitoring of Transactions
- Monitoring of transactions would be based on
the risk profile of the customer/account.
- All the disbursements made to the customers
and all the receipts from the customers would be by way of crossed
cheques /demand drafts and through proper Banking channels such as
account transfers only.
Risk Management
Customers are classified into different
categories based on the risk perception in each case and managed
accordingly.
Procedure for
maintaining information/reporting of transactions
-
NEDFi would maintain
information and records in respect of transactions with its customers
in accordance with the laid down procedure under the aforestated
guidelines.
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NEDFi would, inter alia,
report all 'suspicious transactions' to the authority as specified
under the guidelines. As to the nature of classification of a
transaction as ‘suspicious’, a reference is invited to the meaning of
‘Suspicious Transaction’ as contained in the website of the Financial
Intelligence Unit-India [FIU-IND], Ministry of Finance, GOI.
Retention of records
NEDFi would preserve the KYC
information / records pertaining to borrowers for a period of at least
10 years from the date of cessation of transaction between NEDFi
and the customer.
Principal Officer for KYC compliance
The Asst General Manager [F&A],
Guwahati Head Office has been appointed as Principal Officer of NEDFi,
who is responsible for monitoring and reporting of all transaction and
sharing of information as required under the captioned policy
guidelines.
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