The Ministry of Finance on Wednesday amended the Prevention of Money Laundering Act (PMLA) to allow people who have used Aadhaar for KYC and want to give an address different from the one in Aadhaar as current address on self declaration basis. This has been a long-pending demand from various sections.
With the change in the PMLA Act, people may have residential address in their Aadhaar and give work address as current address. There are many cases where people may have their address in Aadhaar and want to give a more functional address for KYC.
The amendment in prevention of money laundering norms will allow voluntary use of Aadhaar as proof of identity for migrant workers, who have the address of their native place in Aadhaar but want a bank account with their current address where they are living for work. The new rule will also help in getting mobile phone connections.
"In exercise of the powers conferred by section 73, the central government further amend the Prevention of Money Laundering (Maintenance of Records) Rules, 2005," Ministry of Finance notified on Wednesday.
These rules would be called the Prevention of Money-laundering (Maintenance of Records) Fifth Amendment Rules, 2019, which will come into force on the date of their publication in the Official Gazette.
PMLA is the means through which banks, financial institutions, and other intermediaries are authorised to verify identity of clients before on boarding them on to their platforms.
In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, a sub-rule would be inserted "where a client has provided his Aadhaar number for identification under clause (a) of sub-rule (4) and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the reporting entity", FinMin said in the statement.
Edited by Chitranjan Kumar
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