ANNOUNCEMENT OF KYC NORMS

All the members of Institute of Chartered Accountants of India (ICAI), who are in practice, are hereby informed that the Council has formulated the Know Your Client (KYC) norms at it’s 356th Meeting held on 29th, 30th June and 1st July, 2016.

KNOW YOUR CLIENT (KYC) NORMS

The financial services industry globally is required to obtain information of their clients and comply with KYC norms.

Keeping in mind the highest standards of Chartered Accountancy profession in India, the Council of ICAI thought it necessary to issue such norms to be observed by the members of the profession who are in practice.

In light of this background, the Council of ICAI approved the following KYC Norms which are mandatory in nature and shall apply in all assignments pertaining to attest functions.

1. WHERE CLIENT IS AN INDIVIDUAL/ PROPRIETOR

A. GENERAL INFORMATION

  • Name of the Individual
  • PAN No. or Aadhar Card No. of the Individual
  • Business Description
  • Copy of last Audited Financial Statement

B. ENGAGEMENT INFORMATION

  • Type of Engagement

2. WHERE CLIENT IS A CORPORATE ENTITY

A. GENERAL INFORMATION

  • Name and Address of the Entity
  • Business Description
  • Name of the Parent Company in case of Subsidiary
  • Copy of last Audited Financial Statement

B. ENGAGEMENT INFORMATION

  • Type of Engagement

C. REGULATORY INFORMATION

  • Company PAN No.
  • Company Identification No.
  • Directors’ Names & Addresses
  • Directors’ Identification No.

3. WHERE CLIENT IS A NON-CORPORATE ENTITY

A. GENERAL INFORMATION

  • Name and Address of the Entity
  • Copy of PAN No.
  • Business Description
  • Partner’s Names & Addresses (with their PAN/Aadhar Card/DIN No.)
  • Copy of last Audited Financial Statement

B. ENGAGEMENT INFORMATION

  • Type of Engagement

These norms shall come into force w.e.f 1st January, 2017.

More Under CA, CS, CMA

10 Comments

  1. venkat says:

    Biggest joke!!! this is all normal process ICAI should wake up… it is like saying ask the name before saving a mobile number..This shows how ICAI thinking is much below

  2. ketan arora says:

    ICAI, most of the members have already been doing this compliance, not in the name of KYC but because these are the utmost basic requirements to collect from client to do any job. I just hope you guys haven’t had spent much time on it. 😛

  3. Girish says:

    All that can be said is ,Happy new year ,for all my friends and now this additional documents responsibility for peer review,ICAI kindly jai ho,i t simply made me recollect the good old memories of SAP 3 DOCUMENTATION.

  4. RiddhiSiddhi says:

    What new in it… All these information along with all other information of clients are already with members.. than what is KYC norms do not know… Is it publicity stunt???

  5. vswami says:

    OFFHAND
    It is personally felt that, certain expressions e.g. “attest functions”, so also applicability (of the mandated norms) to such functions as happen to be ‘undertaken’ before the specified effective date, are prima facie wanting in clarity. If so, those in active field practice would be obliged to seek necessary clarifications and guidance from the ICAI.

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