November 14, 2019

Anti-money laundering rules amended; use of Aadhaar made easier

[ by Kavita Krishnan ]


The government has amended the anti-money laundering rules to allow people to use Aadhaar for identification and yet use an address different from the one given in Aadhaar document for completing Know Your Customer (KYC) for purposes like opening bank accounts.

The Finance Ministry on 13th November, 2019 made an amendment to the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, allowing an individual to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, on a self-declaration basis to the reporting entity. The move is aimed at making it easier to use the biometric identification document for various purposes and seeks to improve the ‘ease of living’, a priority for the government.

According to the notification, there was demand from various sectors. It will help migrant workers who have the address of their native place in Aadhaar but want a bank account with their current address where they are living for work.

The statement also stated that there are many instances where people may have their address in Aadhaar and want to give a more functional address for KYC. In May, the Reserve Bank of India allowed banks to use Aadhaar for KYC with the customer’s consent.

The RBI has laid down KYC norms to be followed by banks and other entities regulated by it for different customer services.

Related Post

latest News

  • RBI Bans Use Of Direct Selling Agents To Sell Loans In Order To Minimize Data Theft, Reduce Operational Risk For Banks

    The Reserve Bank of India (RBI) has banned the use of direct selling agents (DSAs) to sell retail loans as well as physically verify documents of borr...

    Read More
  • CAIT writes to PM over predatory pricing by Amazon, Flipkart

    The fight between Confederation of All India Traders (CAIT) and e-commerce giants Amazon and Flipkart over predatory pricing and deep discounting has ...

    Read More
  • Trial Proceedings Against Top Former Punjab National Bank Officials Stayed By The Delhi High Court

    The Delhi High Court has stayed the trial court proceedings against its former Managing Director and Chief Executive Officer Usha Ananthasubramanian a...

    Read More