MANU/IRDA/0004/2013

Authority : Insurance Regulatory and Development Authority

Circular No. : IRDA/SDD/GDL/CIR/019/02/2013

Date : 05.02.2013

Notification/ Circulars Referred : Circular reference IRDA/F&I/CIR/AML/158/09/2010 dated 24th September 2010 MANU/IRDA/0108/2010;Circular IRDA/F&I/CIR/AML/180/11/2010 dated 12th November 2010 MANU/IRDA/0129/2010

Citing Reference:

Circular reference IRDA/F&I/CIR/AML/158/09/2010 dated 24th September 2010 MANU/IRDA/0108/2010Referred

Circular IRDA/F&I/CIR/AML/180/11/2010 dated 12th November 2010 MANU/IRDA/0129/2010          Referred

AML/CFT guidelines-Procedures for Determination of Beneficial Ownership

Attention is drawn to clause 3.1.1 (iii) of IRDA Circular reference IRDA/F&I/CIR/AML/158/09/2010 dated 24th September 2010 on AML/CFT guidelines (the Master Circular 2010) which requires insurers to identity and verify the beneficial owner to an insurance contract.

2. In order to have a uniform approach across the financial sector, Government of India, Ministry of Finance in consultation with various financial sector regulators has specified the procedures for determination of Beneficial Ownership, as under:

Customers other than individuals or trusts:

2.1 Where the customer is a person other than an individual or trust, the insurance company shall identify the beneficial owners of the customer and take reasonable measures to verify the identity of such persons, through the following information:

(a) The identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest.

Explanation: Controlling ownership interest means

i. ownership of/entitlement to more than 25 percent of shares or capital or profits of the juridical person, where the juridical person is a company;

ii. ownership of/entitlement to more than 15% of the capital or profits of t........