AML/KYC Policy-How effective in India?

[BTCIndia]

A notable company has fabricated their own KYC/AML policy as quoted below:

We believe in being self-regulated and follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to appropriate authority. We are committed to ensure that our website or services are not used to facilitate money laundering or the funding of terrorism or any other criminal activities. To fulfill this goal, we have designed our own know-your-customer/KYC and anti-money laundering/AML information acquiring system to safeguard our customers and ensure continuous, clean barter.

As a part of identification procedure, we need to obtain certain customer identification documents including a copy of PAN card and address proof from every customer. These processes make us know who are paying us money and whom we are sending money, without which our website and services can be used for money laundering and other illicit purposes.

I believe, they'll be asking for personal identification and second residential proof. Customer's might be sending documents photocopy (b&w/Colour) or at best scanned copy of original documents or photocopy. Somewhat same method and policy used by other exchanges with little bit changes.

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.

How many filing they've done so far to "appropriate authority" as we know that large amount of illicit transactions are being done through Silk Road like websites(currenct data is not available but approximately 2.2% of trade on Silk Road 1.0 was done through India) which is HUGE. Somewhere, these coins are being traded either on p2p like localbitcoin, through forum or established exchanges.

How can they  justify their claim that website and services are not being tool of larger plot?

[1714824300]

1714824300

[1714824300]

1714824300

[BTCIndia]

No comments, nothing on my silly one liner?

Anyone is free to comment Thou revolutionaries?

Bitcoin Alliance, Igot, Unocoin and BTCXIndia are welcome to defend their policy.

[xkrishna]

Hmm... i think its effective you should start making all dox everything by 18

[neha]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

[indiangrad]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

I think the point was whether the same can be misused?

[BTCIndia]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

I think the point was whether the same can be misused?

Finally, some people are able to understand beyond words.

[BTCIndia]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

Now, I and they know. Can you provide us with more details or you're not sure about information you've have?

[neha]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

Now, I and they know. Can you provide us with more details or you're not sure about information you've have?

Here https://www.tin-nsdl.com/pan-verify/pan-verification-charges.php.

[BTCIndia]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

Now, I and they know. Can you provide us with more details or you're not sure about information you've have?

Here https://www.tin-nsdl.com/pan-verify/pan-verification-charges.php.

Thank you!

[neha]

How can be they sure about authenticity? How they're conducting diligence for verification of Identity and address? If they're asking for PAN Card, how are they authenticating it because they don't have access to NSDL database or cross-verification facility like banks.


How can they  justify their claim that website and services are not being tool of larger plot?

Pan card data can be easily verified as they must have subscription to the NSDL data. It only costs 12K INR per year I think.

Now, I and they know. Can you provide us with more details or you're not sure about information you've have?

Here https://www.tin-nsdl.com/pan-verify/pan-verification-charges.php.

Thank you!

Sure...no thanks needed.

[neha]

And one more thing, if you do pull up someones record, the pan card holder gets an email(assuming they left it while registration) saying that XYZ company pulled your pan card details on XYZ date. So, I dont think it can abused so much.

[polynesia]

And one more thing, if you do pull up someones record, the pan card holder gets an email(assuming they left it while registration) saying that XYZ company pulled your pan card details on XYZ date. So, I dont think it can abused so much.

Whoa.... I didn't know that.
That is a very good trigger.
We can be relieved that identity theft is a little more difficult.

[Fernandez]

I thought the KYC was a standard set of rules as they are used in the banks for a start. When I registered in igot and the other exchange site (forgot that name) I was asked to provide identity proofs similar to what my banks required.

[BTCIndia]

I thought the KYC was a standard set of rules as they are used in the banks for a start. When I registered in igot and the other exchange site (forgot that name) I was asked to provide identity proofs similar to what my banks required.

Did they ask for xerox, scanned copy (b/w or coloured) and what else?
Address proof, some affidavit?

[suman66]

acc to KYC rule

1. What is KYC?

KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business, etc which in turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.

KYC has two components - Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records.

2. Is there any legal backing for verifying identity of clients?

Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act.

http://www.rbi.org.in/scripts/FAQView.aspx?Id=82

read all information here

[Fernandez]

I thought the KYC was a standard set of rules as they are used in the banks for a start. When I registered in igot and the other exchange site (forgot that name) I was asked to provide identity proofs similar to what my banks required.

Did they ask for xerox, scanned copy (b/w or coloured) and what else?
Address proof, some affidavit?

Yes, scanned copy and address proofs. No affidavit.

[BTCIndia]

I thought the KYC was a standard set of rules as they are used in the banks for a start. When I registered in igot and the other exchange site (forgot that name) I was asked to provide identity proofs similar to what my banks required.

Did they ask for xerox, scanned copy (b/w or coloured) and what else?
Address proof, some affidavit?

Yes, scanned copy and address proofs. No affidavit.

If it so then, my friend who has files for liquor license can help me create at least 2000 accounts. Ramlal, Shyamlal, Bansi Yadav etc etc.

Wow! When its me, with limited power and course can do it then.... I wonder, people with lot of power, contacts and resource will...

Best wishes for diligence! 

[Fernandez]

I thought the KYC was a standard set of rules as they are used in the banks for a start. When I registered in igot and the other exchange site (forgot that name) I was asked to provide identity proofs similar to what my banks required.

Did they ask for xerox, scanned copy (b/w or coloured) and what else?
Address proof, some affidavit?

Yes, scanned copy and address proofs. No affidavit.

If it so then, my friend who has files for liquor license can help me create at least 2000 accounts. Ramlal, Shyamlal, Bansi Yadav etc etc.

Wow! When its me, with limited power and course can do it then.... I wonder, people with lot of power, contacts and resource will...

Best wishes for diligence! 

He has 2000 passports/voter ID/ Aadhar/ Pan Card etc? They need one of those.

[suman66]

some websites require your face with your id card with clear face image just for verification purpose in this case what to do ?

some borrow or investing btc sites.

[BTCIndia]

some websites require your face with your id card with clear face image just for verification purpose in this case what to do ?

some borrow or investing btc sites.

In that case, you need to be the one. Once can all them a genuine attempt.