F . NO.P-120111712019-ES fell -DoR — THE PREVENTION OF MONEY -LAUNDERING ACT, 2002

Subject: F . NO.P-120111712019-ES fell -DoR Government of Ind a Ministry of Financ Department of Reve ue CIRCULAR Procedure for processing of applic , tions under Section 11A of the Prevention of Money-Laundering tct, 2002 for use of Aadhaar authentication services by entities other than Banking companies . Section 11A of the Prevention of Money aundering Act , 2002 (hereinafter referred to as the Act) and the rules made ther under provide that any reporting entity being a banking company can accept Aadh ar number from its client either at their option or when the client intends to reCeiVejny benefit or subsidy under any scheme notified under section 7 of the Aadhaar ( argeted Delivery of Financial and Other subsidies , Benefits and Services) Act , 2016 nd carry out authentication of the clie1t's Aadhaar number using e-KYC auth ~ nticati[n facility pr~,vided by the Unique Identification Authority of India . 1 , " 2 . The Act also provides that the Central GOIernment may , if satisfied that a reporting entity other than banking company , complies with such standards of privacy and security under the Aadhaar (Targete Delivery of Financial and Other Subsidies , Benefits and Services) Act , 2016 , and i is necessary and expedient to do so , by notification , permit such entity to carry ut authentication of the client's Aadhaar number using e-KYC authentication facil ty . However, no such notification shall be issued without consultation with the Uniq e Identification Authority of India (UIDAI) established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefit ~ and Services) Act , 2016 and the appropriate regulator . Any reporting entity which desires to car out authentication of the client's Aadhaar number using e-KY