Section 11A(1) in The Prevention of Money-Laundering Act, 2002
(1)Every reporting entity shall verify the identity of its clients and the beneficial owner, by-(a)authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) if the reporting entity is a banking company; or(b)offline verification under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016); or(c)use of passport issued under section 4 of the Passports Act, 1967 (15 of 1967); or(d)use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf:Provided that the Central Government may, if satisfied that a reporting entity other than banking company, complies with such standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, (18 of 2016) and it is necessary and expedient to do so, by notification, permit such entity to perform authentication under clause (a):Provided further that no notification under the first proviso shall be issued without consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) and the appropriate regulator.
