IRDAI extends CKYCR to legal entities

IRDAI extends CKYCR to legal entities

NEW DELHI: The Insurance Regulatory and Development Authority of India has asked reporting entities to upload ‘Know Your Customer’ data pertaining to accounts of legal entities opened on or after April 1 onto the Central KYC Registry (CKYCR). Reporting entities (REs) are already uploading the KYC data pertaining to all individual accounts on to CKYCR in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005.

As the CKYCR is now fully operational for individual customers, it has been decided to extend the CKYCR to Legal Entities (LEs), regulator IRDAI said in a circular to life and general insurers (including standalone health insurers).

“Accordingly, REs shall upload the KYC data pertaining to accounts of LEs opened on or after April 1, 2021, on to CKYCR..,” it said.

In December last year, the Reserve Bank of India had issued similar circular asking all entities concerned to upload the data pertaining to accounts of legal entities opened on or after April 1, 2021, onto the CKYCR.

IRDAI further said REs should also ensure that in case of accounts of LEs opened prior to April 1, 2021, the KYC records are uploaded on to CKYCR during the process of periodic updation before the next transaction.

“REs shall ensure that during periodic updation, the customers’ KYC details are migrated to current Customer Due Diligence (CDD) standards,” it added.

Further, where a customer submits a ‘KYC identifier’ for KYC, the RE should retrieve the records from CKYCR. In such case, the customer should not submit the KYC records unless there is a change in the KYC information required by RE, it added.

As per the circular, at the time of periodic updation, it is to be ensured that all existing KYC records of individual customers are incrementally uploaded by /before the next transaction on to CKYCR.

“Once ‘KYC Identifier’ is generated/ allotted by CKYCR, the REs shall ensure that the same is communicated immediately to the respective policyholder in a confidential manner, mentioning its advantage/ use to the individual/legal entity, as the case may be,” the regulator said.

The Central Registry of Securitization and Asset Reconstruction and Security interest of India (CERSAI) has been authorised by the government to perform the functions of the Central KYC Records Registry, including receiving, storing, safeguarding and retrieving the KYC records in digital.

CKYCR acts as centralised repository of KYC records of investors in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector.

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