KYC Registration Agency
Circular
Circular No.: NDML/POLICY/2024-0007 May 29, 2024
Subject: Implementation of Centralization of certifications under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration Agencies (KRAs).
Ref: SEBI circular ref. no. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12 dated February 20, 2024
SEBI circulars and guidance notes by the Department of Revenue, Ministry of Finance on FATCA and CRS norms and Income Tax Rules require all the reporting financial institution (RFI) to perform required activities to determine / report the details of client’s residence for tax purpose. Reporting Financial Institutions (RFIs) are performing these obligations as applicable to them.
SEBI vide its Circular SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12 dated February 20, 2024 has advised that the RFI (Reporting Financial Institutions) which are SEBI Registered Intermediaries (SRIs) shall be required to upload the details of FATCA and CRS certifications obtained from the clients on to the system of KRAs with effect from July 01, 2024 for the purpose of centralised maintenance of data. This KRA reporting is in addition to other applicable / incidental collection / diligence / maintenance and reporting activities.
The existing FATCA and CRS certifications obtained from clients prior to July 01, 2024, shall be uploaded by the intermediaries onto the systems of KRAs within a period of 90 days of implementation of this circular i.e. by September 30, 2024. The certifications where country of tax residency is outside India be uploaded to KRAs and where it is not applicable may not be uploaded and KRAs would consider/mark them as investors where country of tax residency is India. Further, in case of old KYC records, it is possible the KRA may receive certification details for the same client from multiple RFIs which are SRIs and in such scenario the latest certification would be recorded against the KYC record.
Additional data to be uploaded to KRA system for KYC records uploaded on or after July 01, 2024
FATCA/CRS information for Individuals:
Information to be uploaded on KRA | Check Points | |
Place of Birth (existing field but validations are improvised) | Ensure valid place of birth is provided. Special characters, only numeric values shall not be allowed | |
Country of Birth (existing field but validations are improvised and supported by Country master) | Ensure valid Country of Birth / County Code (as per ISO 3166) is provided. This is enclosed as Annexure to this Circular for easy reference. | |
Tax Residency other than India? |
| Values should be ‘Y,’ ‘N’
If this column is ‘Y’, it indicates that FATCA / CRS is applicable and therefore additional details as below will apply and one or more of the Country of Tax Residency columns should have values other than India.
If this column is ‘N’, it indicates that FATCA / CRS is not applicable and therefore additional details as below will not apply.
|
Country of Residency1, Country of Residency2, | Tax Tax | Ensure this column contains only valid County Code. Ensure valid Country of Birth / County Code (as per ISO 3166) is provided. (Refer Annexure A) |
Country of | Tax |
|
Residency3, Country of Residency4 | Tax |
|
Tax Identification Number1, Tax Identification Number2, Tax Identification Number3, Tax Identification Number4 | 9/16-digit TIN if Country of Tax Residency is declared as ‘US’. For other countries, valid TIN should be uploaded as per TIN structure format defined by respective country. For cases where TIN is exempt, reason for exemption to be provided TIN validation will not be done at KRAs as the same is done at RFI. | |
Date of Declaration | <Date> | |
SRIs are requested to take note of below points:
- SRIs will continue to follow the existing practices wrt due diligence of FATCA/CRS details including TIN validation.
- FATCA / CRS Certification details/information being collected by the SRI need to be uploaded to KRAs from July 1, 2024 as part of registration as well as modifications. Any records received without these details would be rejected.
- KRAs will maintain the FATCA / CRS Certification details/information against the KYC record and make it available as part of Solicited / Unsolicited KYC downloads.
- SRIs can use the FATCA / CRS Certification details received from KRA for facilitating investor onboarding and seek confirmation from the investor for the same.
- SRI who have provided the latest information would be considered by the KRAs.
- Wherever country is specified, country code as per ISO-3166 standard values should be uploaded. Refer Annexure -A
- It is SRI’s responsibility to validate TIN and upload the validated TIN wherever structure format is defined. Refer Anenxure-B.
- If any updated FATCA / CRS Certification is received / collected by any SRI, the same needs to be uploaded to KRA system as a modification request.
The below formats/documents are enclosed for ready reference of SRIs so that necessary development in systems at SRI end can be completed.
- Static Master for Country Codes-ISO 3166 (Annexure A)
- TIN Structure/formats (Annexure B)
- KYC-Registration Upload file formats and sample files (Annexure C)
- KYC-Modification Upload file formats and sample files (for NDML & OKRA PANs (Annexure D)
The API based file formats for Registration and Modification file format for NDML & OKRA PANs and API based download format are available for SRIs under admin user login on https://kra.ndml.in/kra–web/MILogin.jsp
Further, the format for solicited and unsolicited downloads from NDML KRA will be shared shortly.
In case of any assistance and any clarification on file formats, please write to us on [email protected], [email protected], [email protected] & [email protected]
For and on behalf of NSDL Database Management Limited
sd/-
Vijay Gupta
Senior Vice President
