OVD for identity verification of Individuals under IFSCA (AML/CFT and KYC) Guidelines

The International Financial Services Centres Authority (IFSCA) has issued a detailed guideline around anti-money laundering and combating of terrorism financing, laying down the AML/CFT measures the regulated entities registered with IFSCA are required to implement (IFSCA (AML, CFT and KYC) Guidelines, 2022). This guideline also provides the Know Your Customer process to be followed to identify the customers and verify their identity, including the list of documents to be treated as Officially Valid Documents (OVD).

In the case of a natural person, the guidelines mandate the regulated entities to obtain OVDs such as Aadhar No., Passport No., etc., that captures the name, nationality, date of birth and person’s photograph. Documents to be considered as OVD in the case of foreign individuals are also prescribed. The regulated entities must ensure that the identity documents are valid and correct and the identity details captured in the OVD match the information furnished by the customer in the KYC form.

Here is an infographic capturing the Officially Valid Documents for identity verification of individuals – resident and foreign.

AML India is an AML Consultancy service provider, offering end-to-end AML support to the regulated designated persons subject to PMLA 2002, including regulated entities licensed with AML IFSCA. AML India supports the IFSCA-regulated entities in assessing the overall ML/FT risk and designing a customized AML compliance framework. We help entities design and implement robust customer onboarding processes, including KYC, screening, and complete Customer Due Diligence.