From

INDIAN
OVERSEAS
CENTRAL OFFICE
CHENNAI : 600 002

BANK

Ref. No.
Date
Issuing Dept.

b g- / 2015-16

MASTER/
03.07.2015
: OPERATIONS

DEPT

TO ALL BRANCHES / REGIONAL OFFICES / ZO / OTHER OFFICES

SYSTEMS

REVISED
YOUR
ANTI

MONEY

COMBATING
OBLIGATION

AND

POLICY

-2015

CUSTOMER
LAUNDERING

OF FINANCING

OF THE BANKS

PROCEDURES

(KYC)

ON KNOW
NORMS

(AML)

OF TERRORISM

UNDER PREVENTION

STANDARDS
{CFT}

OF MONEY

/
AND
LAUNDERING

ACT

1. PREAMBLE
1.1. Our Bank's Policy on Know your Customer
{KYC} norms /
Anti Money Laundering
{AML} Standards
/ Combating
of
Financing
of Terrorism
{CFT} was first approved
by the
Board, in December
2005.
Central
Office had issued
a
detailed
circular
on Policy Document
on KYC and AML
Procedures
{PDoc. KYC AML} vide MISC/250/2005-06
dated 31st December 2005.
1.2. Based
on RBI Master
Circular
DBOD.AML.BC.No.24/
14.0l.001/
2013-14
dated
1st July
2013,the
revisions
made in KYC/ AML/ CFT gu ide li n e s up to June 2013 were
advised
vide
CO Circular
MASTER/ 49 / 2014-15
dated
13.05.2014.
1.3. Reserve
Bank
of India has subsequently
issued
many
directives
which have been advised to branches
by way of
circulars periodically.
Reserve Bank of India has also issued
directives on KYC Norms/ AML Standards/CFT
in respect of
Money
Changing
Activities
and
Cross
Border
Inward
Remittance
under Money Transfer Service Scheme. Reserve
Bank
of
India
has
come
out
with
Master
CircularDBOD.AML.BC.No.22/
14.0 l.00 1/2014-15
dated 1st
July 2014 consolidating
the instructions
on KYC/ AML/ CFT
th
issued up to 30 June 2014.
1.4. The revised policy on KYC norms/ AML Standards/
CFT and
obligations
of the
Bank
under
Prevention
of Money
Laundering
Act, on the basis of aforesaid
directives
and
subsequent
directives issued
by Reserve Bank of India up
to 30th
November
2014
was approved
by the Risk
Management
Committee
of the Board on 22.06.2015
and
confirmed by the Board at its meeting held on 25.06.2015.
The text of the revised policy is enclosed in the annexure for
the benefit of Branches,
Regional Offices, ZOs and Other
Offices.
1.5. Circulars
issued
by
the
Operations
Department
on
modifications
in KYC/ AML policy effected
subsequent
to
November 30, 2014 (which have already been ported in lOB
online & RBI.org.in)
will be incorporated
in the ensuing
master circular.
2. OPERATIONAL

INSTRUCTIONS

2.1. Branches,
Regional
offices, ZOs and other
Offices are
required
to note that the revised Policy Document on KYC

and AML Procedures,

as per
Annexure,
stands
operationalised
with immediate effect.
2.2. The Revised Policy is to be read with our Permanent/Mise
circulars
a) 340/2013-14
dated 2l.1l.2013
- KYC-Information
sought
by banks from customers.
b) 341/2013-14
dated
2l.1l.2013
Opening
of Bank
Accounts
by Foreign Students
studying
in India - KYC
procedure for opening of bank accounts.
c) 342/2013-14
dated 23.1l.2013
- KYC - e-KYC service of
UIDAI - Recognising
ONLINE Aadhaar
authentication
(electronic
verification
process)
to be accepted
as an
'Officially valid document' under PML rules.
d) 361/2013-14
dated 07.0l.2014
- KYC Amendment
to
Section 13(2).
e) 379/2013-14
dated 06.03.2014
- KYC - Recognising
eAadhaar
as an 'officially valid document'
under
PML
rules.
f) 398/2014-15
dated 12.05.2014 - KYC - Harmonization
of
KYC norms for Foreign Portfolio Investors (FPls).
a) MISC/455/2014-15
dt.9.10.2014
by
Operations
Department
- Officially Valid KYC documents
based on
RBI circular no. DBOD.AML.BC.No. 26/14.0l.001/201415 dt 17.07.2014
b) MISC/456/2014-15
dt
1l.10.2014
by
Operations
Department
- clarifications
officially valid documents
based on IBA circular
letter no. RB/KYC&AML/660
dt
22.09.2014
c) MISC/458/2014-15
dt
15.10.2014
procedure
for
determining
Beneficial
ownership
- based
on
RBI
circular No. DBOD.AML.BC.No. 26/14.0l.001/2014-15
dt
17.07.2014
d) MISC/460/2014
- 15 dt 20.10.2014
- clarification
on
proof
of address
based
on
RBI
circular
no.
DBOD.AML.No. 5487/14.01.001/2014-15
dt. 13.10.2014
e) MISC/462/2014-15dt
25.10.2014Partial
Freezing
of
accounts
- based on RBI circular
no. DBOD.AML.BC.
no.44/14.0l.001/2014-15
dt. 2l.10.2014
f) MISC/470/2014-15
dt 26.1l.2014
by Operations
DeptDispensation
of Positive confirmation
- based on RBI
circular no DBOD.AML.BC. No.39/14.0l.001/2014-15
dt
04.09.2014
2.3. Section-R

of the
aforesaid
revised
policy
details
the
guidelines on KYC norms / AML Standards / CFT in respect of
money
changing
activities
and
Cross
Border
Inward
Remittance under Money Transfer Service Scheme.
2.4. Operational/Administrative
staff at branches,
Regional
Offices and other Offices are advised to carefully peruse the
revised text of Policy Document on KYC/ AML and fine tune
their perception
to assimilate
the spirit underlying
in each
and every issue, addressing
to the dire need to safeguard
our . Banki~g .. System
and genuine
customers
from the
dubIOUS ac tivi ti e s of Money Launderers.

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3. CONCLUSION
3.1. Branches,

Regional
Offices, ZOs and other
offices are
advised
to note that
the guidelines
on KYC and AML
procedures
advised by RBI and the statutory
obligations
under Prevention
of Money Laundering
Act will go a long
way in tackling the menace of Money Laundering,
3.2. Violation/non-compliance
of KYC/ AML Procedures
shall
attract
penalty and will also result in down-rating
of our
Bank's performance
in the Annual Financial Inspection
(AFI)
report by Reserve Bank of India,
3.3. Operational
Staff are required
to realize
the functional
significance
of KYC/ AML Procedures
and ensure
sin cer e
commitment
for compliance in their day-to-day
activities of
branch
banking
to
safeguard
our
esteemed
genuine
customers,
the bank and its work force from he nefarious
activities of Money Launderers.

(BA

KISHAN T)

GENERAL
INDEX

UNDER:

ANNEXURE

SYSTEMS

: Revised

MANAGER

AND PROCEDURES

policy on KYC Norms I AML Standards I Combating of Financing of Terrorism

(CFT) and Obligation of the Banks under Prevention of Money Laundering Act.