Know Your Customers (KYC) norms for identification of clients by CHAs:
In the context of increasing number of offences involving various modus-operandi such as misuse of export promotion schemes, fraudulent availment of export incentives and duty evasion by bogus IEC holders etc., it has been decided by the Board to put in place the “Know Your Customer (KYC)” guidelines for CHAs so that they are not used intentionally or unintentionally by importers / exporters who indulge in fraudulent activities. Accordingly, Regulation 13 of CHALR, 2004, has been suitably amended to provide that certain obligations on the CHAs to verify the antecedent, correctness of Import Export Code (IEC) Number, identity of his client and the functioning of his client in the declared address by using reliable, independent, authentic documents, data or information. In this regard, a detailed guideline on the list of documents to be verified and obtained from the client/ customer is enclosed in the Annexure. It would also be obligatory for the client/ customer to furnish to the CHA, a photograph of himself/herself in the case of an individual and those of the authorised signatory in respect of other forms of organizations such as company/ trusts etc., and any two of the listed documents in the annexure.
Annexure
Client/ Customer Identification Procedure
Features to be verified and documents to be obtained from clients/ customers
S.No | Form of organisation | Features to be verified | Documents to be obtained |
1 | Individual | (i) Legal name and any other names used
(ii) Present and Permanent address, in full, complete and correct. | (i) Passport
(ii) PAN card
(iii) Voter’s Identity card
(iv) Driving licence
(v) Bank account statement
(vi) Ration card
Note: Any two of the documents listed above, which provides client/ customer information to the satisfaction of the CHA will suffice. (vii) KYC FORM - Individual (attached below) |
2 | Company | (i) Name of the company
(ii) principal place of business
(iii) mailing address of the company
(iv) telephone, fax number, e-mail address. | (i) Certificate of incorporation
(ii) Memorandum of Association
(iii) Articles of Association
(iv) Power of Attorney granted to its managers, officers or employees to transact business on its behalf
(v) Copy of PAN allotment letter
(vi) Copy of telephone bill (vii) KYC FORM - Company (attached below) |
3 | Partnership firm | (i) Legal name
(ii) Permanent address, in full, complete and correct.
(iii) Name of all partners and their addresses, in full complete and correct.
(iv) telephone, fax number, e-mail address of the firm and partners. | (i) Registration certificate, if registered
(ii) Partnership deed
(iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
(iv) Any officially valid document identifying the partners and the person holding the Power of Attorney and their addresses
(v) Telephone bill in the name of firm/ partners (vi) KYC FORM - Partnership (attached below) |
4 | Trusts, Foundations | (i) Name of trustees, settlers, beneficiaries and signatories
(ii) Name and address of the founder, the managers, Directors and the beneficiaries, in full, complete and correct.
(iii) Telephone and fax number, e-mail address of the trust, founder and trustees. | (i) Certificate of Registration, if registered
(ii) Power of Attorney granted to transact business on its behalf
(iii) Any officially valid document to identify the trustees, settlers, beneficiaries and those holding the Power of Attorney, founders/ managers/ directors and their addresses
(iv) Resolution of the managing body of the foundation/ association
(v) Telephone bill (vi) KYC FORM - Trusts (attached below) |