AML KYC Tutorial | Account Opening Requirements

 

Account Opening Requirements

KYC documentation’s important is the account opening process. The account opening process is the beginning of the relationship between the bank and the client. The process commences when a client has agreed to the terms and conditions of the banks regarding the product and services that will be offered in this relationship. In general, the process involves the signing of contracts or forms for opening accounts and the provision of various requisite documents by the client such as PAN card, Address proof, photographs, etc.

Opening Accounts of Individuals – For KYC Procedure

Opening a bank account is the beginning of a relationship based on trust. A face to face interaction with the applicant at the branch or the customer’s office or residence is an essential element of the KYC procedure.

For the opening of the account, the following documents are required,

• Relationship/Application form duly filled in and signed by all the applicants;
• Recent photograph of all the applicants;
• Identity and Address Proofs of all the applicants; and
• Copy of PAN Card

Opening Accounts of Proprietary Firms – For KYC Procedure

The documents required for opening the account of proprietor firms are,

• Account opening form signed by the proprietary on behalf of the firm;
• A recent photograph of the proprietor;
• Identity proof of the proprietor;
• Proof of name, address, and activity of the firm; and
• Copy of PAN card of the proprietor.

Opening Accounts of Partnership Firms – For KYC Procedure

The documents required for opening accounts of partnership firms are,

• Account opening form signed by all partners together with their photographs;
• Proof of identity of the partners;
• Copy of PAN Cards of all the partners;
• Copy of stamped and duly registered partnership deed;
• Partnership Letter in the firm’s letter head.

Opening Accounts of Limited Companies – For KYC Procedure

The documents required for opening accounts of private and public limited companies are,

• Account opening form signed by all authorized signatories together with their photographs. The signatures to be verified by the Company Secretary;
• Proof of identity of the authorized signatories;
• Copy of PAN Card;
• Copy of Board Resolution duly signed by the Chairman/Company secretary;
• Latest list of all directors with their addresses duly dated and signed by CS;
• Copy of Certificate of Incorporation & Commencement of Business (public ltd co. only)
• Copy of Memorandum and Articles of Association;

Banks need to be vigilant against business entities being used by individuals as a ‘front’ for maintaining accounts with banks. Banks should examine the control structure of the entity, determine the source of funds and identify the natural persons who have a controlling interest and who comprise the management.

 

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