Section 7A: Identifying the Customer

1) The indicting agency shall be subject to sub-sections (3) and (4) on the basis of documents, data or information obtained from reliable sources that accurately identify the client when acting in accordance with the following:

(a) The establishment of a commercial relationship,

(b) To open an account,

(c) In the case of a transaction exceeding the prescribed amount,

(d) The transfer of funds by electronic means,

(e)  When further corrections are made to doubt the truthfulness or adequacy of the information previously taken for the identification of the customer,

(f) In the event of further enrichment for the purification of assets or suspicion of financial investment in terrorist activities,

(g) Every transaction carried out by a high-risk customer or a high-profile person, or

(h) To perform any other function as may be prescribed by the regulatory body.

2) The minimum documents to be taken with the customer while identifying the customer will be as prescribed.

3) The referring institution shall use documents, data or information containing independent and reliable sources when identifying and verifying the identity of the customer in accordance with this paragraph.

4) The referring institution shall take the following measures to identify and satisfy its customers properly:

(a) To obtain appropriate information about the nature of the business or commercial relationship and its purpose or objectives,

(b) If the customer is a natural person, to obtain details of his name, address and date of birth, including the documents prescribed in accordance with sub-section (2),

(c) If the client is a legal person or legal management, to obtain and complete information and information about its ownership and control system, including the documents prescribed in accordance with sub-section (2),

(d) To establish or carry on a business relationship on behalf of another  person on whose behalf  such relationship or business is sought to be carried on, to identify and verify the identity of the person acting on their behalf and to obtain a document containing the authorisation,

(e) To obtain such other information and information as may be necessary in relation to the type and nature of the client, business or profession in order to carry out the obligations under this paragraph,

(f) To take such other measures as may be prescribed by the regulatory body.

5) Notwithstanding anything contained in sub-section (1), it shall not be mandatory for a non-financial professional or professional entity to identify and verify the identity of the client:

(a) A customer who engages in a transaction of Rs 2 lakh or less in a day.

(b) A businessman dealing in precious metals and commodities having a turnover of ten lakh rupees or less in a day.

6) In accordance with this paragraph, all responsibility for verifying the correct identity and identity of its customers shall be the responsibility of the relevant signatory organization.