ICAI KYC Norms for Chartered Accountant (CA Members)

ICAI Announces KYC Norms for CA

Recently The Institute of Chartered Accountants of India (ICAI) announced That the members in practice are required to followed ICAI KYC Norms regard as Know Your Client and hereby informed that the Council has formulated the Know Your Client (KYC) norms at its 356th Meeting held on 29th, 30th June, and 1st July 2016.

KNOW YOUR CLIENT (KYC) NORMS BY ICAI

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

Keeping in mind that 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.

The ICAI KYC (Know Your Client) Norms are mandatory w.e.f. 1st January 2017  compliance applicable to  ‘Members in Practice’ for maintaining requisite documentation/ information about the Clients. such KYC Norms are applicable to services pertaining to Audit, Review, Agreed upon Procedures and Compilation of Financial Statements.

ICAI KYC Norms for members (mandatory)

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

The decision shall be in force from 1st January 2017.

Recommended “Know Your Client” (KYC) guidelines for members

Chartered Accountant should obtain the following additional information/data along with the other necessary documentation as per existing client acceptance policy of ICAI.

1. ENTITY INFORMATION

A. General Information

  • Name of the Entity
  • Type of Entity
  • Business Description

B. Corporate Structure

  • Name of ultimate parent company
  • Name of Parent company
  • Name of Affiliates

C. Regulatory Information

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

In how many companies, the above named are Directors along with the Name and Addresses of those companies.

D. Engagement Information

  • Type of Engagement

2. OTHER INFORMATIONS

  • Entities financial Information
  • Name of the ultimate parent Auditor
  • Any known violation of any Law/Regulations
  • Past Performance
  • Significant Transactions of the company

However, these Guidelines are recommendatory in nature but every Chartered Accountant carrying out the attest function is expected to follow these Guidelines in the national interest.

Download ICAI notification for KYC Norms Click here

 

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