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KYC AML Policy

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1. PREAMBLE

This Know Your Customer (“KYC”) / Anti Money Laundering (“AML”) Policy has been framed in accordance with:

This Policy shall apply to Unicap Investments Private Limited (“the Company”), business operations, employees, digital platforms, field executives and customer onboarding channels and shall be effective from the date of approval of this policy and shall be reviewed periodically and whenever required by under the applicable laws, rules, regulations or RBI directions.

2. OBJECTIVE OF THE POLICY

The objective of this Policy is to:

3. APPLICABILITY

This Policy shall apply to:

This Policy applies to:

4 . APPROVALAND REVIEW OF POLICY

This Policy has been approved by the Board of Directors of: Unicap Investments Private Limited (“the Company”)

This Policy shall be reviewed at least annually, or earlier if required, and updated to reflect changes in applicable RBI directions, statutory and regulatory requirements, business operations, products and services, risk management practices, and any other relevant developments

5. THE KEY ELEMENTS OF THE KYC AND AML POLICY ARE:

6. DEFINITIONS

For the purpose of this Policy, the following terms shall have the meaning assigned to them below:

6.1 “Aadhaar number” shall have the meaning assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);

6.2 “Act” and “Rules” means the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, respectively and amendments thereto.

6.3 “Authentication”, in the context of Aadhaar authentication, means the process as defined under subsection (c) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

6.4 “Certified Copy” - Obtaining a certified copy by the Company shall mean comparing the copy of the proof of possession of Aadhaar number where offline verification cannot be carried out or officially valid document so produced by the customer with the original and recording the same on the copy by the authorised officer of the Company as per the provisions contained in the Act.

Provided that in case of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), as defined in Foreign Exchange Management (Deposit) Regulations, 2016 (FEMA 5 (R)), alternatively, the original certified copy, certified by any one of the following, may be obtained:

6.5 “Central KYC Records Registry (CKYCR)” means an entity defined under Rule 2(1) of the Rules, to receive, store, safeguard and retrieve the KYC records in digital form of a customer.

6.6 “Designated Director”- means a person designated by the Company to ensure overall compliance with the obligations imposed under chapter IV of the PML Act and the Rules. The Designated Director shall be the Managing Director or a whole-time Director, duly authorized by the Board. However, the Principal Officer should not be nominated as the "Designated Director"

6.7 “Digital KYC” means the capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the Company as per the provisions contained in the Act.

6.8 “Digital Signature” shall have the same meaning as assigned to it in clause (p) of subsection (1) of section (2) of the Information Technology Act, 2000 (21 of 2000).

6.9 “Equivalent e-document” means an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer as per rule 9 of the Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016.

6.10 “Group” – The term “group” shall have the same meaning assigned to it in clause ( e) of sub-section (9) of section 286 of the Income-tax Act, 1961 (43 of 1961)

6.11 “Know Your Client (KYC) Identifier” means the unique number or code assigned to a customer by the Central KYC Records Registry.

6.12 “KYC Templates” means templates prepared to facilitate collating and reporting the KYC data to the CKYCR, for individuals and legal entities.

6.13 “Non-face-to-face customers” - Customers who open accounts without visiting the branch/ offices of the Company or meeting its officials.

6.14 “Non-profit organization (NPO)” means any entity or organization, constituted for religious or charitable purposes referred to in (15) of section 2 of the Income tax Act 1961 (43 of 1961), that is registered as a trust or a society under the Society Registration Act, 1860 (21 of 1860) or any similar State legislation or a Company registered under the section 8 of the Companies Act, 2013 (18 of 2013)

6.15 “Officially Valid Document” (OVD) means the passport, the driving license, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address.

Provided that,

a. where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.

b. where the OVD furnished by the customer does not have updated address, the following documents or the equivalent e-documents thereof shall be deemed to be OVDs for the limited purpose of proof of address:-

c. the customer shall submit OVD with current address within a period of three months of submitting the documents specified at ‘b’ above

d. where the OVD presented by a foreign national does not contain the details of address, in such case the documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address.

Explanation- For the purpose of this clause, a document shall be deemed to be an OVD even if there is a change in the name subsequent to its issuance provided it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name.

6.16 “On-going Due Diligence” - Regular monitoring of transactions in accounts to ensure that they are consistent with the Company’s knowledge about the customers’ business and risk profile and source of funds/wealth.

6.17 “Offline Verification”, shall have the same meaning as assigned to it in clause (pa) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016)

6.18 “Person” has the same meaning assigned in the Act and includes:

6.19 “Periodic Updation” means steps taken to ensure that documents, data or information collected under the CDD process is kept up-to-date and relevant by undertaking reviews of existing records at periodicity prescribed by the RBI.

6.20 “Customer Identification” means undertaking the process of CDD

6.21 “Principal Officer (PO)” - means an officer nominated by the Company, responsible for furnishing information as per rule 8 o

6.22 Wire transfer” related definitions:

6.23 “Suspicious transaction” means a “transaction” as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith:

6.23.1 gives rise to a reasonable ground of suspicion that it may involve the proceeds of offence specified in the Schedule to the Act, regardless of the value involved; or

6.23.2 appears to be made in circumstances of unusual or unjustified complexity; or

6.23.3 appears to have no economic rationale or bona fide purpose; or

6.23.4 gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

Explanation- Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.

6.24 “Transaction”- means a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and includes:

6.24.1 opening of a loan account;

6.24.2 deposits, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means;

6.24.3 the use of a safety deposit box or any other form of safe deposit;

6.24.4 entering into any fiduciary relationship;

6.24.5 any payment made or received in whole or in part of any contractual or other legal obligation;

6.24.6 establishing or creating a legal person or legal arrangement.

6.25 “Customer”- means a person who is engaged in a financial transaction or activity with the Company and includes a person on whose behalf the person who is engaged in the transaction or activity, is acting.

6.26 “Walk-in Customer”- means a person who does not have an account based relationship with the Company, but undertakes transactions with the Company.

6.27 “Customer Due Diligence” (CDD)- means identifying and verifying the customer and the beneficial owner using reliable and independent sources of identification.

6.28 “Video Based Customer Identification Process (V-CIP)”: an alternate method of customer identification with facial recognition and customer due diligence by an authorised official of the Company by undertaking seamless, secure, live, informed-consent based audio-visual interaction with the customer to obtain identification information required for CDD purpose, and to ascertain the veracity of the information furnished by the customer through independent verification and maintaining audit trail of the process. Such processes complying with prescribed standards and procedures shall be treated on par with face-to-face CIP for the purpose of this Policy

6.29 Beneficial Owner / Ultimate Beneficial Owner (UBO)

Beneficial Owner means the natural person(s) who ultimately own(s), control(s) or benefit(s) from a customer or legal entity, whether directly or indirectly.

7. MONEY LAUNDERING AND TERRORIST FINANCING RISK ASSESSMENT BY THE COMPANY:

7.1 The Company shall carry out ‘Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment’ exercise periodically to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk for clients, countries or geographic areas, products, services, transactions or delivery channels, etc

7.2 The assessment process should consider all the relevant risk factors before determining the level of overall risk and the appropriate level and type of mitigation to be applied. While preparing the internal risk assessment, the Company shall take cognizance of the overall sector-specific vulnerabilities, if any, that the regulator/supervisor may share with REs from time to time.

7.3 The risk assessment by the Company shall be properly documented and be proportionate to the nature, size, geographical presence, complexity of activities/structure, etc. of the Company. Further, the periodicity of risk assessment exercise shall be determined by the Board or any committee of the Board of the Company to which power in this regard has been delegated, in alignment with the outcome of the risk assessment exercise. However, it should be reviewed at least annually

7.4 The outcome of the exercise shall be put up to the Board or any committee of the Board to which power in this regard has been delegated, and should be available to competent authorities and self-regulating bodies

7.5 The Company shall apply a Risk Based Approach (RBA) for mitigation and management of the risks (identified by the company on its own or through national risk assessment) and should have Board approved policies, controls and procedures in this regard. The Company shall implement a CDD programme, having regard to the ML/TF risks identified and the size of business. Further, the Company shall monitor the implementation of the controls and enhance them if necessary.

8. DESIGNATED DIRECTOR

(a) A “Designated Director” is as defined under 6.6 of this policy

(b) The name, designation, address and contact details of the Designated Director shall be communicated to the FIU-IND and RBI.

(d) In no case, the Principal Officer shall be nominated as the 'Designated Director'.

9. PRINCIPAL OFFICER

(a) A “Principal Officer” is as defined under 6.21 of this policy.

(b) The Principal Officer shall be responsible for ensuring compliance, monitoring transactions, and sharing and reporting information as required under the law/regulations.

(c) The name, designation, address and contact details of the Principal Officer shall be communicated to the FIU-IND and RBI.

10. COMPLIANCE OF KYC POLICY

(a) The Company shall ensure compliance with KYC Policy through:

(b) The Company shall ensure that decision-making functions of determining compliance with KYC norms are not outsourced.

11. CUSTOMER ACCEPTANCE POLICY (CAP)

The Company shall:

The Company reserves the right to reject customer onboarding where:

12. RISK MANAGEMENT

For Risk Management, the Company shall have a risk based approach which includes the following:

13. CUSTOMER IDENTIFICATION PROCEDURE (CIP)

The Company shall undertake Customer Identification Procedure (“CIP”)

The Company may obtain:

13A. NON-FACE-TO-FACE CUSTOMER ONBOARDING

13A.1 The Company may onboard customers through non-face-to-face modes, including digital channels, online applications, web-based platforms, mobile applications or such other channels as may be permitted under applicable laws.

13A.2 The Company shall ensure that customer identification and verification are carried out in accordance with the applicable RBI KYC Directions and the provisions of this Policy.

13A.3 Customers onboarded through non-face-to-face mode shall be subject to enhanced due diligence measures, including, wherever considered necessary by the Company:

13A.4 The first disbursement of loan shall be made only into the bank account of the borrower maintained with a regulated financial institution and verified by the Company.

13A.5 The Company may obtain such additional documents, declarations, information or confirmations as may be required based on the risk profile of the customer.

13A.6 The Company shall continuously monitor transactions and customer activities of non-face-to-face customers and may undertake enhanced monitoring wherever unusual, suspicious or high-risk activities are identified.

13A.7 The Company reserves the right to reject, suspend or discontinue onboarding of any customer where the identity of the customer cannot be satisfactorily established or where any suspicious activity is observed.

14. MODES OF CUSTOMER ONBOARDING

The Company may onboard customers through:

The Company presently follows:

Aadhaar / PAN / document-based onboarding process.

The Company may implement Video-based Customer Identification Process (V-CIP) in future in accordance with RBI guidelines and applicable regulatory requirements.

15. PERIODIC UPDATION OF KYC – INDIVIDUAL CUSTOMERS

The Company shall adopt a risk-based approach for periodic updation of KYC records of individual customers and ensure that customer information and documents remain updated and compliant with prevailing regulatory requirements

1. Periodic KYC updation shall be carried out at least once every:

or such other periodicity as may be prescribed by RBI from time to time.

2. Where there is no change in KYC information, the Company may obtain a self-declaration from the customer through registered mobile number, email, digital channels, mobile application, or other permitted modes.

3. Where only the address has changed, the Company may obtain a self-declaration of the new address and shall verify the same within two months through appropriate means.

4. The Company may use Aadhaar OTP-based e-KYC, where permitted under applicable regulations, for KYC updation and periodic KYC updation.

5. For customers who were minors at the time of onboarding, fresh photographs and updated KYC documents shall be obtained upon attaining majority, and fresh KYC may be conducted where required.

6. The Company shall ensure that KYC documents available on record comply with current Customer Due Diligence (CDD) standards. Where documents are unavailable, expired, or no longer meet applicable standards, KYC equivalent to that applicable for a new customer shall be undertaken.

7. PAN details, wherever available, shall be verified from the database of the issuing authority during periodic KYC updation.

8. Customers shall be required to inform the Company of any change in KYC information or documents within 30 days of such change.

9. The Company shall provide advance intimations and reminders to customers for periodic KYC updation and maintain appropriate records of such communications.

10. The Company shall provide acknowledgement of receipt of KYC documents/self-declarations and notify customers upon successful updation of KYC records.

16. CUSTOMER DUE DILIGENCE (CDD) – INDIVIDUAL CUSTOMERS

The Company shall undertake Customer Due Diligence (CDD) prior to establishing a business relationship with an individual customer. The Company shall obtain and verify the customer's identity and address through Aadhaar (where permitted and voluntarily provided), Officially Valid Documents (OVD), equivalent e-documents, or KYC records retrieved from CKYCR, along with PAN or Form 60, as applicable. The Company may use Aadhaar-based e-KYC, Offline Verification, Digital KYC, biometric authentication, or other modes permitted under applicable regulatory guidelines. The Company may also obtain such additional information and documents relating to the customer's occupation, source of income, financial status, and purpose of the relationship as may be required under its risk-based KYC and AML framework.

17. REPORTING TO FIU-IND

The Company shall report Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs), and other prescribed reports to FIU-IND in accordance with the Prevention of Money-laundering Act, 2002, applicable Rules, and regulatory guidelines. The Principal Officer shall be responsible for timely and accurate reporting and maintenance of related records. The Company shall implement appropriate transaction monitoring systems to identify and report suspicious transactions. Filing of an STR shall not, by itself, restrict operations in the customer's account. All information relating to reports submitted to FIUIND shall be kept strictly confidential and shall not be disclosed to the customer or any unauthorized person.

18. SECRECY OBLIGATIONS AND SHARING OF INFORMATION:

i. The Company shall maintain secrecy regarding the customer information which arises out of the contractual relationship between the lender and customer.

ii. The exceptions to the said rule shall be as under:

iii. While considering the requests for data/information from Government and other agencies, Company will satisfy themselves that the information being sought is not of such a nature as will violate the provisions of the laws relating to secrecy in transactions.

iv. The information collected from customers for the purpose of opening of account shall be treated as confidential and details thereof shall not be divulged for the purpose of cross selling, or for any other purpose without the express permission of the customer.

19. COMPLIANCE WITH THE PROVISIONS OF FOREIGN CONTRIBUTION (REGULATION) ACT, 2010:

The Company shall ensure that the provisions of PMLA and the Rules framed thereunder and the Foreign Contribution and Regulation Act, 2010, wherever applicable, are adhered to strictly

20. INTRODUCTION OF NEW TECHNOLOGIES

Company shall identify & access to any money-laundering and financing of terrorism threats that may arise in relation to the development of new products and new business practices including new delivery mechanisms, and the use of new or developing technologies for both new and pre-existing products. Accordingly, company shall undertake the ML/TF risk assessments prior to the launch or use of such products, practices, services and technologies; and take appropriate measures to manage and mitigate the risks through appropriate EDD measures and transaction monitoring, etc.

21. INDIVIDUAL CUSTOMER KYC

The following documents may be obtained from individual borrowers:

22. NON-INDIVIDUAL CUSTOMER KYC

For companies, LLPs, partnerships and other entities, the Company may obtain:

23. BENEFICIAL OWNERSHIP (UBO)

The Company shall identify and verify the Ultimate Beneficial Owner(s) in accordance with RBI and PMLA requirements.

UBO identification shall be undertaken for:

The Company may obtain:

The Company shall maintain appropriate records relating to the ownership and control structure of such customers and update the same whenever material changes are identified.

24. CUSTOMER RISK CATEGORIZATION

Customers shall be categorized into:

Risk categorization may depend upon:

The Company may apply Enhanced Due Diligence (“EDD”) for high-risk customers.

25. POLITICALLY EXPOSED PERSONS (PEP)

Enhanced monitoring shall be undertaken for Politically Exposed Persons (“PEPs”).

PEP onboarding may require:

26. SANCTIONS SCREENING

The Company may screen customers against:

27. CKYCR COMPLIANCE

The Company shall upload customer KYC records to:

Central KYC Records Registry (CKYCR) in accordance with applicable law

28. ONGOING DUE DILIGENCE

The Company shall undertake ongoing monitoring of:

The Company may seek additional documents or updated KYC from customers whenever required.

29. ANTI-MONEY LAUNDERING (AML) MEASURES

The Company shall establish AML controls to:

30. RECORD RETENTION

The Company shall maintain:

31. DIGITAL LENDING AND CUSTOMER CONSENT

The Company shall ensure:

Customer data shall be used only for lawful business and regulatory purposes.

32. FIELD VERIFICATION

The Company may undertake:

33. EMPLOYEE RESPONSIBILITY

Employees shall:

Any violation may result in disciplinary action.

34. INTERNAL CONTROL AND AUDIT

The Company shall establish:

Internal audits may review:

35. EMPLOYEE TRAINING

The Company shall periodically train employees regarding:

36. CONFIDENTIALITY

Customer information shall be kept confidential and shared only:

ANNEXURE – CUSTOMER DOCUMENT CHECKLIST

INDIVIDUAL BORROWER

NON-INDIVIDUAL BORROWER