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KYC / AML
Policy

Naveen Finance Pvt. Ltd. is committed to implementing robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures in full compliance with applicable regulatory requirements.

The Company has implemented a Board-approved KYC/AML Policy that governs customer identification, verification, risk classification, transaction monitoring, and reporting obligations to prevent the use of financial services for money laundering or terrorist financing activities.

Regulatory Framework

The Company's KYC/AML Policy is aligned with the following regulatory requirements:

RBI Master Direction – Know Your Customer (KYC) Directions
Prevention of Money Laundering Act (PMLA), 2002
Prevention of Money Laundering (Maintenance of Records) Rules, 2005
FIU-IND Reporting Requirements
Applicable AML/CFT Regulations and Circulars
Foreign Account Tax Compliance Act (FATCA) provisions where applicable
Common Reporting Standard (CRS) requirements

Customer Identification & Verification

Naveen Finance follows a comprehensive Customer Due Diligence (CDD) process involving the following identification and verification requirements:

PAN Verification

Permanent Account Number (PAN) verification is mandatory for all borrowers as per Income Tax Act and PMLA requirements.

Aadhaar / eKYC Verification

Aadhaar-based eKYC is used for digital identity verification through UIDAI-authorized channels with explicit customer consent.

Officially Valid Documents (OVDs)

Passport, Voter ID, Driving License, Aadhaar, NREGA card, or other documents as specified under RBI KYC Directions.

Address Verification

Proof of current and permanent address is verified through approved OVDs or utility bills as per applicable guidelines.

Mobile & Email Verification

Contact information is verified through OTP-based authentication to ensure reachability and identity confirmation.

Business / Entity Proof

For non-individual borrowers: Certificate of Incorporation, partnership deed, GST registration, and other applicable entity documents.

Risk-Based Customer Classification

Customers are classified into risk categories based on their profile, transaction patterns, and applicable regulatory guidelines:

Low Risk

Customers with stable income, established identity, low transaction volumes, and no adverse background indicators.

Medium Risk

Customers requiring enhanced due diligence based on transaction patterns, geographic factors, or business complexity.

High Risk

Politically Exposed Persons (PEPs), customers from high-risk jurisdictions, or those with adverse risk indicators requiring intensified monitoring.

AML Monitoring & Controls

The Company implements the following AML monitoring and control mechanisms to detect and prevent suspicious transactions:

Transaction monitoring to detect unusual or suspicious patterns
Screening against PEP (Politically Exposed Persons) lists and sanction databases
Enhanced Due Diligence (EDD) for high-risk customers and transactions
Periodic review and update of customer KYC information
Internal controls to detect structuring or layering of transactions
Alert mechanisms for transactions inconsistent with customer profile

Record Retention & Reporting

KYC and transaction records are maintained in accordance with applicable regulatory requirements:

KYC documents are retained for a minimum of 5 years after the end of the business relationship
Transaction records are maintained for the period prescribed under PMLA and applicable regulations
Digital KYC records are stored in secure, access-controlled systems
Records are available for regulatory inspection upon request

FIU-IND Reporting

The Company files Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs), and other mandatory reports with the Financial Intelligence Unit — India (FIU-IND) as required under PMLA and applicable regulations.