Know Your Customers Norms
RBI has issued instructions to all banks to implement without fail certain procedural norms on KYC. Failure would attract levy of penalty and if penalty has been levied the same is to be disclosed in the notes to accounts. In view of the nature of the directive the audit procedure may be suitably adopted to enquire the system of implementation and review of other reports in respect of this area. The auditor should examine that there exists proper procedure in place to ensure that framework relating to ‘Know Your Customer’ and Anti- Money Laundering measures is formulated and put in place by the bank.