Parliament of India enacted Prevention of Money Laundering Act, 2002 (PMLA) to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matter connected therewith. The provision of PMLA came into force on 01st July 2005. Section 12 of PMLA, inter-alia, requires all intermediaries associated with securities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992 to maintain a record of all transactions, the nature and value of which has been prescribed under the rules notified under the PMLA. Pursuant to this, Securities and Exchange Board of India (SEBI) issued Guidelines on Anti Money Laundering Standards and various circulars from time to time to implement the provisions of PMLA in the securities market and to prevent and impede money-laundering and combat financing of terrorism. DNFINDER SERVICES LIMITED (hereinafter referred to as ‘DSL’ or ‘the Company’), hereby adopts and bring into effect this Anti Money Laundering Policy & Procedures (AML Policy & Procedures) in accordance with the provisions of PMLA and the rules made there under, SEBI Guidelines and Circulars issued from time to time on this subject. The policy applies not only to money laundering, but also to terrorist financing. All references to money-laundering in this policy, company policies and procedures and standards include terrorist financing as appropriate.
The Company shall endeavor at all times to comply, in letter and spirit, with the provisions of all relevant laws, rules, regulations, guidelines and circulars issued by regulatory authorities in relation to anti-money laundering and the Company’s policies & procedures.
In order, to ensure that DNFINDER’s services are not utilized by unwanted and illegal elements to further their illegal motives, DNFINDER intends to follow a holistic Due Diligence Policy which entails the following:
Identification of clients (and actual beneficial owners) and verification
Obtaining additional ‘know your client’ information as appropriate and necessary
Acceptance of clients
Maintain appropriate records of customer identification and trail of transactions
Co-operate with the regulatory authorities to the extent required by
the applicable laws and provide information as may be required,
without breaching the customer confidentiality agreement
Give appropriate training to the relevant staff for effective
implementation of the AML Policy & Procedures
Prevent and deter the use of the Company/Company’s services by money
launderers or those involved in criminal activities including
financing of terrorism and to protect the reputation of the Company.
Protect the Company and its employees against unfounded allegations
of facilitating money laundering and terrorist financing;
Protect the Company and its employees against any criminal, civil and
regulatory actions which might result from inadvertent involvement
in money laundering and/or terrorist financing or from failure in
operational controls.d/or terrorist financing or from failure in
operational controls.
Before admitting any person as a Customer, the Company shall obtain sufficient information, in order to identify the customer. The same will be done for all existing customers as well. This is done by obtaining
‘Know Your Customer’
(KYC) information. PAN shall be mandatory for each account. Each client shall have one account only
KYC information should be updated on a regular basis during the course of business relationship
The customer should be identified by the company using documents/information from reliable sources. Adequate information to establish the identity of each client and the purpose of the intended nature of the relationship should be obtained by the Company
Any customers whose registration information does not match the documents provided or appears to be fictitious may not be registered, and if registered, their registration shall be terminated.
No customers shall be allowed to register in fictitious names or if the customer appears to be an anti social element or is found to have a record of fraud, cheating or forgery.
Company may ask for additional information at any point of time and if the customer refuses or is unable to provide such additional information then such customer shall not be registered, and if registered, their registration shall be terminated.
Ongoing due diligence and scrutiny
– DNFINDER shall conduct
periodic due diligence and scrutiny of client’s transaction
and accounts to ensure that transactions are being conducted
in knowledge, to find out the risk profile, source of funds,
etc. At regular interval, ongoing due diligence and scrutiny
needs to be conducted i.e. perform ongoing scrutiny of the
transactions and account throughout the course of the business
relationship to ensure that the transactions being conducted
are consistent with the Organization’s knowledge of the client,
its business and risk profile, taking into account, where
necessary, the customer’s source of funds.
Customer identification procedure is a means of verifying the
identity of the customer by using reliable, independent source
documents, data or information. DNFINDER needs to obtain sufficient
information necessary to establish, to its satisfaction, the
identity of each new customer, whether regular or occasional,
and the purpose of the intended nature of relationship.
DNFINDER shall have in place a comprehensive Customer Identification
Procedure which details the various documents that DNFINDER can
take as Identity, Address proof. This document shall be updated
with approvals from compliance and with subsequent ratification
by the Board of Directors
DNFINDER may ask for periodical updating of customer
identification and other data after the account is opened
- Drivers Licence
- Passport (Front and Last page)
- Voters ID Card (Front and Back)
- Aadhar Card (UID)
- Bank Statement
- PAN Card
- Certificate of incorporation and Memorandum & Articles of Association
- Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account
- Power of Attorney granted to its managers, officers or employees to transact business on its behalf
- PAN number
- Copy of the telephone bill
- Registration certificate, if registered;
- Partnership deed
- Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
- Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses
- Telephone bill in the name of firm/partners
- Certificate of registration, if registered
- Power of Attorney granted to transact business on its behalf
- Any officially valid document to identify the trustees, settlers, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses
- Resolution of the managing body of the foundation/association
- Telephone bill
- Registration certificate (in the case of a registered concern)
- Certificate/licence issued by the Municipal authorities under Shop & Establishment Act
- Sales and income tax returns
- CST/VAT certificate
- Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities
- Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT, etc.
- Driver’s License
- Aadhaar Card
- Passport
- Voter’s Identity Card
- Utility Bills (Landline, Electricity, Gas) not older than 3 months.
- Ration card with name mentioned in the ration card. (Not applicable as a valid address proof in the states of Delhi & Maharashtra).
- PAN intimation letter (not older that 1 year).
- Letter from employer along with employee card and latest salary slip.3
- Utility Bills (Landline, Electricity, Gas) not older than 3 months.
- E-Aadhar card.
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Lease Agreement or Leave and License Agreement shall be accepted only as a proof of temporary residence if provided along with any of the above documents in this sub-clause as proof of permanent address.
1. One to One Interaction: Dnfinder has no mandatory policy of meeting the clients individually. However, Dnfinder will be enabling customers to submit their documents in person during meet-ups and/or workshops held across the country which would allows for another level of direct KYC verification.
2. Authenticity Check: Dnfinder may, and shall be under no obligation to, check that the documents provided by the customers as proof of identity and proof of address are authentic by cross checking them against freely available public databases.
3. General Conditions: While providing documents to fulfill the User Identification Policy, customers should keep in mind the following:
i. Please upload clear scanned copies only. Scanned images should be in color and in high resolution (at least 300 dpi) however the file size should not be greater than 15 MB. Acceptable formats for the scanned copies are JPG, GIF, PNG, TIFF or PDF.
ii. All documents should be valid on the date of submission and should not have expired.
iii. Documents should be provided in English
iv. In case address proof submitted is not in the name of applicant then an additional document supporting the relationship with the addressee should be submitted by email such as marriage certificate, gazetted copy of name change or passport, visa etc. stating name of spouse/ guardian & their relationship.
- Fraud: any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
- Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
- Collusion: arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
- Terrorist financing: provision or collection of funds, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of
- Criminal conduct: conduct, which constitutes an offence in any part of the world or would constitute an offence in any part of the world if it occurred there.
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Money laundering: Money laundering is essentially the process of
engaging in such financial transactions that are designed to conceal
the true origin of criminally derived proceeds for the purpose of ensuring
that such proceeds appear to have been received through legitimate sources/origins.
What is considered money laundering?
“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering.”