F No.P-12011/7/2019-ES Cell-DOR Government of India Ministry of Finance Department of Revenue — THE PREVENTION OF MONEY -LAUNDERING ACT, 2002

F No.P-12011/7/2019-ES Cell-DOR Government of India Ministry of Finance Department of Revenue New Delhi, 9th May, 2019 CIRCULAR Subject: Procedure for processing of applications under Section I1A of the Prevention of Money-Laundering Act, 2002 for use of Aadhaar authentication services by entities other than Banking companies. 1. Section 11A of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as the Act) and the rules made thereunder provide that any reporting entity being a banking company can accept Aadhaar number from its client either at their option or when the client intends to receive any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 and carry out authentication of the client's Aadhaar number using e-KYC authentication facility provided by the Unique Identification Authority of India. 2 The Act also provides that the Central Government may, if satisfied that a reporting entity other than banking company, complies with such standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act; 2016, and it is necessary and expedient to do SO , by notification, permit such entity to carry out authentication of the client's Aadhaar number using e-KYC authentication facility. However, no such notification shall be issued without consultation with the Unique Identification Authority of India (UIDAI) established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the appropriate regulator. 3. Any reporting entity which desires to carry out authentication of the client's Aadhaar number u