KYC NORMS
RAJ KUMAR
(Querist) 11 December 2010
This query is : Resolved
Two Call Deposits Receipts one of Rs.5.00 Lacs & other of Rs.10.00 Lacs were issued on "Govt Deptt. –A/c XYZ". But these Call Deposits were issued to debit of a third party - ABC to favour XYZ with cheque favouring ‘Yourselves’.
The account debited is of known customer with all KYC compliance and call deposit is in favour of a Govt Department. Whether this transaction violates any KYC Norms? If yes please clarify.
IF ANY CLARIFICATION REGARDING THE NON-COMPLIANCE OF KYC NORMS IN THE TRANSACTION WHEREFROM LEGALLY WE CAN ENQUIRE AUTHENTICALLY BY RTI APPLICATION OR OTHERWISE.
RAJ KUMAR
(Querist) 11 December 2010
THE QUERRY IS MODIFIED.
PLEASE ANSWER.
Parthasarathi Loganathan
(Expert) 11 December 2010
KYC concept is not complied in this case. Though the proceeds emanated from a genuine customer of the bank, (who has reportedly complied with all norms prescribed under KYC norms), the identity of the beneficiary on whose favour call deposits have been issued holds a separate legal entity as far as the bank is concerned. Hence, the depositors need to duly fulfill the guidelines prescribed under KYC guidelines to safeguard Anti-Money laundering issues.
RAJ KUMAR
(Querist) 13 December 2010
ON THIS TRANSACTION ONE BANK EMPLOYEE HAS BEEN ISSUED CHARGE SHEET ON THE GROUND THAT DUE TO THIS TRANSACTION HE HAS NOT COMPLIED KYC NORMS. WHAT TO SAY TO THE AUTHORITIES DOING SO?
malipeddi jaggarao
(Expert) 13 December 2010
Call deposits are made by debiting a customer's account who has complied all KYC norms. But the deposit is payable to Govt.dept.A/c.XYZ. Thus XYZ acquired rights over the deposit. Hence XYZ should also comply with the KYC norms which is lacking in the present case. It is a clear violation of KYC norms.
RAJ KUMAR
(Querist) 15 December 2010
IT IS ALREADY MENTIONED IN THE QUESTION THAT BOTH THE PARTIES ABC AND XYZ ARE KNOWN CUSTOMERS OF THE BANK HAVING ACCOUNT AFTER FULFILLING THE KYC NORMS.
