Section 9(1) in Prevention of Money-Laundering (Maintenance of Records) Rules, 2005
(1)Every reporting entity shall-(a)at the time of commencement of an account-based relationship -(i)identify its clients, verify their identity, obtain information on the purpose and intended nature of the business relationship; and(ii)determine whether a client is acting on behalf of a beneficial owner, and identify the beneficial owner and take all steps to verify the identity of the beneficial owner:Provided that where the Regulator is of the view that money laundering and terrorist financing risks are effectively managed and where this is essential not to interrupt the normal conduct of business, the Regulator may permit the reporting entity to complete the verification as soon as reasonably practicable following the establishment of the relationship; and(b)in all other cases, verify identity while carrying out-(i)transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or(ii)any international money transfer operations.][Provided that where a client is subscribing or dealing with depository receipts or equity shares, issued or listed in jurisdictions notified by the Central Government, of a company incorporated in India, and it is acting on behalf of a beneficial owner who is a resident of such jurisdiction, the determination, identification and verification of such beneficial owner, shall be as per the norms of such jurisdiction and nothing in the sub-rules (3) to (9) of these rules shall be applicable for due-diligence of such beneficial owner.Explanation. - For the purposes of this proviso, the expression "equity share" means a share in the equity share capital of a company and equity share capital shall have the same meaning as assigned to it in the Explanation to section 43 of the Companies Act, 2013.] [Inserted by Notification No. G.S.R. 669(E), dated 18.9.2019 (w.e.f. 1.7.2005).]
