In order to ensure that the activities of Non Banking Finance Companies are not used intentionally or unintentionally by criminal elements for the purpose of money laundering activities, NBFCs need to exercise caution and put in place proper customer identification process and acceptance process in place while carrying out their business.
Reserve Bank of India has issued comprehensive guidelines on Know Your Customer (KYC) norms and Anti-money Laundering (AML) standards and has advised all NBFCs to ensure that a proper policy framework on KYC and AML measures be formulated and put in place with the approval of the Board.
Accordingly, in compliance with the guidelines issued by RBI from time to time, Veritas Finance has put in place the following KYC & AML policy approved by the Board of Directors of the Company.
The guidelines mandate making reasonable efforts to determine the 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 Company to manage its risks prudently. At the same time, the intent of the Policy is not to result in denial of financial services to general public, who are financially or socially disadvantaged.
While carrying out due diligence, Veritas Finance will ensure that the procedure adopted does not result in denial of services to any genuine customers at any point of time. The policy/guidelines is applicable to all offices and branches of Veritas Finance.