Centre to freeze bank accounts if PAN and Aadhaar details not given by Dec 31

In a bid to curb benami transactions carried out through banks, the government notified new money-laundering (maintenance of records) rules making it mandatory to provide Aadhaar and PAN number within six months of opening any bank account.

Failure to furnish the two documents will result in the account ceasing to be operational till the time Aadhaar and PAN are submitted by the customers. In case of the existing bank accounts, the deadline for submitting the Aadhaar number and PAN is fixed as December 31, 2017, failing which the account shall cease to be operational till the two documents are submitted to the bank.

The account holder will also have to submit one of the officially valid documents if Aadhaar or PAN does not have his current address. These documents are: the passport, driving licence, voters’ identity card, job card issued by NREGA and igned by a state government officer, a letter issued by the National Population Register.

As regards individuals seeking to open a “small account” in any bank shall have to provide a self-attested photograph and affix signature or thumb print on the account opening form. Such account shall be allowed to operate initially for 12 months and thereafter for another 12 months only if the account holder provides evidence of having applied for any of the officially valid documents within 12 months of opening the account.

The banks are required to monitor such small accounts to ensure that foreign remittances are not credited to them and the account holder will be asked to establish his identity through production of the officially valid documents if there is suspicion of money laundering, financing of terrorism or other high risk scenarios.

The rules make it clear that no foreign remittances shall be allowed into the small account unless the account-holder’s identity has been fully established.

Any account of the company will require Aadhaar number and PAN of the persons holding an attorney to transact on its behalf, besides the certificate of incorporation, memorandum and articles of association and a resolution of the board of directors authorising such persons.