Compliance

KYC & AML Policy

This policy is framed in compliance with the Prevention of Money Laundering Act, 2002 (PMLA), the PMLA Rules, the SEBI Master Circular on AML / CFT and AMFI Best Practice Circulars. It sets out how Money Compound identifies, verifies and monitors its clients in the course of mutual fund distribution and related activities.

1. Client Identification (CIP)

Every prospective investor — Indian resident, NRI or non-individual entity — must complete a KYC verification through a SEBI-registered KRA (CAMS KRA, CVL KRA, NSE KRA, NDML KRA or KARVY KRA) before any transaction is processed. CKYC and Aadhaar-based eKYC (where permitted) are accepted.

2. Documents collected

  • Permanent Account Number (PAN) — mandatory.
  • Proof of identity (Aadhaar / Passport / Voter ID / Driving Licence).
  • Proof of address (utility bill, bank statement or any officially valid document).
  • Bank proof (cancelled cheque or bank statement).
  • For NRIs / OCIs: Passport copy, visa, overseas address proof, FATCA / CRS self-certification.
  • For non-individuals: Constitution documents, board resolution, authorised-signatory KYC.

3. Risk Categorisation

Every client is risk-categorised at onboarding (Low / Medium / High) based on geography, occupation, source of funds and politically-exposed-person (PEP) status. High-risk clients undergo enhanced due diligence (EDD) with documented sign-off from the Compliance Officer.

4. Suspicious Transaction Reporting

Transactions that appear unusual in nature, amount or pattern, or that the client cannot reasonably explain, are escalated internally and where required reported to FIU-IND in accordance with Section 12 of the PMLA. Money Compound does not tip off the client in case of a Suspicious Transaction Report (STR).

5. Record Keeping

KYC documents and transaction records are retained for the statutory period (currently 8 years from cessation of the relationship) in secure, access-controlled systems.

6. Training & Audit

All client-facing personnel undergo periodic AML / KYC training. Our Compliance Officer reviews adherence quarterly and the overall framework is subject to an annual independent audit.

7. Principal Officer

Principal Officer for PMLA matters: Vipul Khandelwal, compliance@moneycompound.com.