Govt notifies e-KYC Setu System to prevent Money Laundering

The Ministry of Finance has notified e-KYC Setu System under PMLA Act via issuing Notification.

The Notification Stated, “In exercise of the powers conferred by sub-section (1) of section 11A of the Prevention of Money-laundering Act, 2002 (15 of 2003), in consultation with Unique Identification Authority of India (UIDAI), the Reserve Bank of India, the Securities Exchange Board of India, the Insurance Regulatory Authority of India and the Pension Fund Regulatory Authority of India, being the appropriate regulator, the Central Government, being satisfied that it is necessary to do so, hereby notifies that entities onboarded to perform authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016)(hereinafter referred to as the Aadhaar Act) for the purposes of section 11A of the Prevention of Money-laundering Act, 2002 using the e-KYC setu system be permitted to do so, after being satisfied that the e-KYC setu system complies with the standards of privacy and security under the Aadhaar Act.”

The e-KYC setu shall be a system put in place by National Payments Corporation of India (NPCI) to enable verification of identity of a client or its beneficial owner by a reporting entity through authentication under the Aadhaar Act without disclosing the Aadhaar number of the individual to the reporting entity.

NPCI shall check that the authentication is carried out using the Aadhaar number of the client as per the regulations laid down by UIDAI, without revealing full Aadhaar number to the reporting entity, and after carrying out authentication, NPCI shall share the last four digits of the Aadhaar number of the client, alongwith his demographic details made available to it by UIDAI, digitally signed by it, with the reporting entity and the reporting entity shall carry out identification of the client based on the details provided by the client and NPCI.

UIDAI may conduct such verification, including physical verification, as it deems necessary to ensure that the system put in place by NPCI is in compliance with the regulations issued by them and the requirements laid down by them, and if the UIDAI concludes that additional measures are required to bring the system in compliance with the regulations and other requirements, if any, it may issue such directions to be followed in such time as it deems necessary.

To Read Full Notification Download PDF Given Below: