PRINCIPAL NODAL OFFICER- AML and KYC Guideline

Ms. Sadiyah Zaheer
e-mail: sadiyah@asaindiamf.com

NBFCs (including RNBCs) have been advised in Para 4(x) of Annex VI of the ‘Know Your Customer’ (KYC) Guidelines – Anti Money Laundering Standards (AML) – ‘Prevention of Money Laundering Act, 2002 under the Reserve Bank of India that they should appoint a senior management officer to be designated as Principal Officer and the role and responsibilities of the Principal Officer have been detailed therein. With a view to enable the Principal Officer to discharge his responsibilities, the Principal Officer and other appropriate staff should have timely access to customer identification data and other CDD information, transaction records and other relevant information. Further, NBFCs (including RNBCs) should ensure that the Principal Officer is able to act independently and report directly to the senior management or to
the Board of Directors. The role and responsibilities of the Principal Officer should include overseeing and ensuring overall compliance with regulatory guidelines on KYC/AML/CFT issued from time to time and obligations under the Prevention of Money Laundering Act, 2002, rules and regulations made thereunder, as amended from time to time.

 

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