Section 7E: Identification of the Customer Due Diligence (CDD)

1) The Reporting entity shall follow appropriate measures of enhanced Customer Due Diligence (CDD) when establishing business relationships or conducting transactions with/of the following customer:-

(a) Customer identified as high risk in accordance with sections 7D,7U and 35,

(b) Customer who conducts complex, unusual large transactions and unusual patterns of transactions or which have no apparent economic or visible lawful purpose,

(c) Transaction with the customer of a country which is internationally identified as a deficient or non-compliant country of international Anti Money Laundering /The Financing Of Terrorism,

(d) Politically Exposed Person (PEP), his family member and person associated with Politically Exposed Person,

(e) A consumer carrying on business according to sub-section (1) of section 7N,

(f) Customers who use new high-risk products or services,

(g) Customer suspected of Money Laundering/ Financing Of Terrorism or other offence,

(h) Other clients designated by the regulatory body.

2) The indicting agency shall also take such additional measures as may be prescribed by the regulatory body while identifying the bulk customers of the customers under sub-section (1).

3) Other arrangements for identifying the bulk customers will be as prescribed.