KYC & AML Policy

Emm Dee R Finance Limited is committed to preventing money laundering and terrorist financing activities. Our Know Your Customer (KYC) and Anti-Money Laundering (AML) policy is designed to comply with the Prevention of Money Laundering Act (PMLA), 2002, and RBI guidelines.

1. Know Your Customer (KYC) Requirements

All customers are required to complete KYC verification before availing our services. The KYC process includes:

Identity Proof

Any one of the following:

  • Aadhaar Card
  • PAN Card
  • Passport
  • Voter ID Card
  • Driving License

Address Proof

Any one of the following (not older than 3 months):

  • Utility bills (electricity, water, gas)
  • Bank statement
  • Rent agreement
  • Aadhaar Card

Additional Documents

  • Recent passport-size photographs
  • Income proof (salary slips, ITR, bank statements)
  • Business registration documents (for business loans)

2. Customer Due Diligence (CDD)

We conduct different levels of due diligence based on risk assessment:

  • Simplified Due Diligence: For low-risk customers
  • Normal Due Diligence: For regular customers
  • Enhanced Due Diligence: For high-risk customers, Politically Exposed Persons (PEPs), and high-value transactions

3. Anti-Money Laundering Measures

To prevent money laundering, we:

  • Verify the identity and address of all customers
  • Monitor transactions for suspicious activities
  • Maintain records of all transactions for at least 5 years
  • Report suspicious transactions to the Financial Intelligence Unit (FIU-IND)
  • Conduct regular training for our staff on AML compliance

4. Red Flags for Suspicious Activities

We monitor for the following indicators:

  • Customers providing false or incomplete information
  • Reluctance to provide KYC documents
  • Large cash transactions without reasonable explanation
  • Unusual transaction patterns
  • Transactions involving high-risk countries

5. Periodic KYC Updates

KYC information is updated periodically based on risk categorization:

  • Low Risk: Every 10 years
  • Medium Risk: Every 8 years
  • High Risk: Every 2 years

6. Politically Exposed Persons (PEPs)

Enhanced due diligence is applied for PEPs and their family members. Additional verification and senior management approval are required for such customers.

7. Record Maintenance

We maintain records of:

  • All KYC documents for at least 5 years after the account closure
  • Transaction records for at least 5 years
  • Correspondence with customers
  • Reports filed with regulatory authorities

8. Compliance Officer

We have designated a Principal Officer responsible for AML compliance and reporting suspicious transactions to FIU-IND.

Important Notice

Non-compliance with KYC requirements may result in denial of services. We reserve the right to freeze or close accounts that do not meet KYC norms.

Last Updated: January 2026