Government keeps window open on PAN, Aadhaar for financial dealings

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PAN, Aadhaar
PAN, Aadhaar

The government has amended rules requiring mandatory quoting of Aadhaar and PAN for certain financial transactions like the opening of a bank account by keeping the deadline open-ended in place of the current 31st December.

A new rule modifying the Prevention of Money Laundering Act (PMLA) 2002 has been notified to replace the requirement of submitting the Aadhaar number and Permanent Account Number by 31st December, 2017 with the Aadhaar number, and Permanent Account Number or Form No. 60 by the date to be notified by the Central Government.

The notification by the Department of Revenue in the Finance Ministry effectively paves the way for extending the deadline for mandatory quoting of Aadhaar for activities like the opening of a bank account.

On 7th of this month, the deadline for linking PAN with Aadhaar was extended by three months to 31st of March next year.

Under the PMLA, Aadhaar, PAN and other official documents are required to be obtained by banks and financial institutions from anyone opening a bank account as well as for any financial transaction of 50 thousand rupees and above.

The notification issued yesterday stated that accounts, where Aadhaar and PAN are not furnished by the date notified
by the government, will cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client.

The PMLA and its rules impose an obligation on reporting entities like banks, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit of India.

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