Tag: know your customer

  • Sebi’s grasp round on KYC norms: What does it imply for the buyers?

    It is a compilation of plenty of instructions issued by the regulator until Sep 30 and contains modifications to align these circulars with the Prevention of Money Laundering (upkeep  of data) Rules 2005. And any modification within the current KYC data might be affected in step with the provisions of this round by Dec 31, 2023. 

    This grasp round entails the next algorithm:

    1. All Sebi-registered intermediaries will use the identical KYC type and supporting paperwork. 

    The account opening type for purchasers might be divided into two elements. The Part I of the AOF would be the KYC type which can seize the fundamental particulars of the consumer. 

    And half II of the shape will acquire the extra data particular to the world of exercise of the middleman as thought of acceptable by them. The grasp round, nevertheless, offers with the provisions of Part I of KYC type. 

    2. To determine each participant within the securities market with their respective PAN thereby making certain sound audit path of all of the transactions, PAN would be the distinctive identification quantity for all individuals transacting within the securities market, whatever the quantity. 

    And the registered intermediaries will confirm the PAN of their purchasers on-line on the revenue tax web site with out insisting on the unique or copy of the PAN card. 

    3. There are a number of exemptions to PAN necessities together with for the SIP of mutual funds as much as ₹50,000 per 12 months. 

    The title within the KYC type will match the title as talked about within the proof of  id submitted.

    The paperwork that might be accepted as proof of id embody passport, driving licence, aadhaar quantity, voter’s ID card, letter issued by the NPR and every other doc as notified  by the Central Government in session with the regulator. 

    4. A doc shall be deemed to be an formally legitimate doc even when there’s a change within the title subsequent to its issuance offered it’s supported by a Marriage Certificate  issued by the State  Government or a gazette notification, indicating such change of title.

    5. There is a requirement of further paperwork for non—people i.e., authorized entities resembling belief, partnership agency, HUF, registered society, amongst others. 

    6. The registered intermediaries shall  add  the small print  of  cellular quantity and e mail handle on the KRA system.

    7. The in-person verification carried out by one Sebi registered middleman may be relied upon by one other middleman.

    8. The e-KYC service launched by UIDAI might be accepted as a sound course of for KYC verification.

     

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    Updated: 13 Oct 2023, 03:53 PM IST

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  • How you’ll be able to keep away from these 4 commonest digital fee frauds

    Kambli was fast to report the rip-off to the involved financial institution and lodge an FIR with the police and has managed to get his cash financial institution. However, not everyone seems to be fortunate.

    This is simply one of many many frauds through which conmen dupe a whole lot and hundreds of customers of digital funds into shedding their hard-earned cash. While the modus operandi of every fraud is totally different, the idea of social engineering frauds is identical—these are carried by means of direct human interactions whereby the fraudster calls the sufferer posing as an government and misleads him/her into breaking safety procedures to siphon off cash from his/her checking account.

    Mint tells you the modus operandi of various digital funds associated vishing frauds and the way to keep away from them.

    Pending KYC fraud: This is likely one of the commonest methods used to commit against the law. Fraudsters name the sufferer posing as a financial institution or a card firm government and inform them that their card or checking account shall be disabled in the event that they don’t full KYC on it. They create an urgency to baffle the sufferer and manipulate them into parting with delicate info.

    This is finished by means of a number of methods.

    One, the conman will get the sufferer to share her card or financial institution particulars on the pretext of confirming that they’re speaking to the precise buyer. Once they’ve the main points, they provoke a transaction and ask for the one-time password (OTP) despatched to the sufferer’s cell phone saying it’s wanted to finish the KYC course of. The OTP, in actuality, is for finishing the transaction.

    Second, the conman makes the sufferer obtain a distant entry cellular app, similar to TeamViewer, AnyDesk, Splashtop, ConnectWise, and many others., saying they can assist them full the method on-line by means of this app in order that the client doesn’t have to go to the financial institution.

    “The conman makes the sufferer make a small fee and when the latter keys within the card or financial institution particulars, frauds duplicate the data and use it to commit the fraud,” mentioned Rahul Tyagi, co-founder, Safe Security.

    These apps are usually not malicious and are utilized by corporations to help their clients to unravel technical glitches by remotely helping them by accessing their machine. Hackers have been utilizing these apps to commit subtle crimes.

    “The greatest crimson flag on this fraud is that any service provider, fee firm, financial institution or card firm won’t ever ask you to hold a fee whereas they’ve entry to your telephone. They might ask you generic info however won’t ever make you do a fee exercise. In reality, banks by no means ask clients to obtain a third-party app,” mentioned Tyagi.

    Data leak from e-commerce corporations: Lately, workers of a number of the e-commerce corporations have been promoting information associated to big-ticket purchases executed by clients to fraudsters. When a buyer makes a purchase order from an e-commerce web site, the conman calls that buyer 2-3 days after the acquisition to supply a reward saying they’ve been chosen in a fortunate draw. The hacker makes use of the data associated to that buy acquired from the e-commerce firm’s worker to ascertain the genuineness of the decision. Once the client is satisfied, the conman sends a QR code to the client promising a cashback reward.

    The QR code opens right into a ‘request payment’ hyperlink. Most clients don’t listen and find yourself sending the cash. Some clients discover the request fee message however the conmen have a counter to that as properly. “The fraudster sends a brand new ‘test link’ saying that the client ought to strive it with ₹1 to see that the cash is instantly credited again together with the reward. Once satisfied, the sufferer sends the ‘cashback’ quantity which, in fact, by no means comes again,” mentioned Tyagi.

    The thumb rule of UPI funds is {that a} person by no means has to scan a QR code or click on on a hyperlink acquired by means of an SMS or e mail to obtain fee.

    SIM swap rip-off: Tyagi mentioned that is fairly a harmful rip-off as when carried efficiently, it offers fraudsters entry to all of the monetary info of an individual. Fraudsters primarily goal high-net-worth people (HNIs) by means of this rip-off. The conman calls the sufferer posing as a telecom firm government saying that their SIM will expire within the subsequent 24 hours and that they want the 10-digit distinctive quantity on the SIM card to provoke a connection continuation request.

    “Customers don’t understand how essential this 10-digit quantity is. It is used to port the quantity to a unique operator. Once the client shares this quantity, the fraudster places in a porting request after which the SIM is shut down for twenty-four hours. The fraudsters use this 24-hour window to situation a brand new SIM in the identical quantity after which use it to login and reset the sufferer’s web banking, cellular wallets, UPI and different essential app’s passwords,” Tyagi mentioned. He added that two-factor authentication by means of an app like Microsoft authenticator or Google authenticator can shield clients from such scams.

    “Most of us err by relying solely on OTP-based 2FA as a safety measure. When a cell phone or SIM is compromised, OTP despatched through SMS could be simply considered by the fraudster, which isn’t the case with an app-based authenticator because the authentication code validity is just 30 seconds and it can’t be simply cracked by means of distant entry,” Tyagi mentioned.

    Fake buyer care coordinates fraud: Fraudsters create pretend buyer care numbers of retailers on Google, Twitter, Facebook and Google Maps to con clients into calling them as an alternative of the corporate they need to register a criticism with. When you go in search of customer support coordinates of an organization on social media or Google, there’s a excessive likelihood you could find yourself calling a fraud. What follows is the apparent—the conman methods the sufferer into revealing his/her checking account or card particulars.

    If you need to lodge a criticism, it’s best to solely name on the quantity offered on the service provider’s web site or verified social media web page.

    As a standard apply, don’t share your delicate monetary info or OTPs with anybody over the telephone.

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  • SBI warns of KYC fraud. 3 issues you need to do to maintain your account protected

    The State Bank of India (SBI) has alerted its clients in opposition to the rising circumstances of on-line fraud. Issuing an alert by means of a submit on Twitter, the financial institution put out a warning alerting individuals the place fraudsters dupe individuals within the identify of Know Your Customer or KYC verification. “KYC fraud is real, and it has proliferated across the country. The fraudster sends a text message pretending to be a bank/company representative to get your personal details,” SBI mentioned in a tweet.

    SBI account holders additionally have to be cautious as just lately India’s largest lender determined to allow acceptance of paperwork for KYC replace by means of mail or submit within the wake of difficulties confronted by clients on account of native lockdown induced by the second wave of coronavirus pandemic.

    SBI has shared 3 security mantras to keep away from these fraudsters

    Think earlier than you click on any hyperlinkThe financial institution by no means sends hyperlinks to replace KYCDon’t share your cellular quantity and confidential knowledge with anybody

    How to report KYC fraud?

    The financial institution has cautioned its clients to instantly report any unauthorised transaction of their financial institution accounts. If you discover any unauthorised transaction in your checking account, please report it instantly to the toll-free buyer care numbers – 18004253800, 1800112211. They must also instantly file a report with the cybercrime division.

    What is KYC verification?

    KYC means Know Your Customer. It is a crucial step adopted by banks to ensure that their clients are real.

    Last month, the Reserve Bank of India (RBI) had requested banks and different regulated monetary entities to not impose any punitive restriction in opposition to clients for failure to replace KYC until 31 December 2021.

    “Keeping in view the COVID-related restrictions in various parts of the country, Regulated Entities are being advised that for the customer accounts where periodic KYC updating is due/pending, no punitive restriction on operations of customer account(s) shall be imposed till December 31, 2021,” RBI Governor Shaktikanta Das had mentioned whereas saying steps to cope with the COVID pandemic.

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  • PAN-Aadhaar primarily based KYC obligatory for money buy of gold, silver jewelry? Govt clarifies

    Image Source : PTI PAN-Aadhaar primarily based KYC obligatory for money buy of gold, silver jewelry? Govt clarifies
    The Department of Revenue (DoR), Ministry of Finance has clarified that any buy of gold, silver, jewelry, or valuable gems and stones under Rs 2 lakh doesn’t require PAN or Aadhaar of a buyer as obligatory Know Your Customer (KYC) doc.

    Sources mentioned that the notification issued below PML Act, 2002, on December 28, 2020, is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to hold out KYC and Customer Due Diligence solely once they conduct money transactions above Rs 10 lakh.

    “This is a requirement of FATF (Financial Action Task Force) – the global money laundering and terrorist financing overseer which as the inter-governmental body sets international standards aimed to prevent illegal activities on terror funding and money laundering,” they added.

    According to sources, one of many suggestions requires the DPMS sector to fulfil obligations of Customer Due Diligence (CDD) once they conduct money transactions above a sure restrict (USD/EUR 15,000). India is a member of FATF since 2010.

    “The misinformation being circulated in certain section of media that any purchase, even if below Rs 2 lakh, of gold, silver, jewellery or precious gems and stones in cash require KYC are baseless,” sources added.

    Since in India, money transactions above Rs 2 lakh usually are not allowed below part 269ST of Income-tax Act, 1961, sellers not receiving money greater than Rs 2 lakh in compliance with the prevailing provisions of the Income-tax Act won’t be coated below this notification, they mentioned additional.

    (With ANI inputs)
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