MF investors need to give more KYC info
Investors in mutual fund (MF) schemes have to provide additional KYC (know your customer) information in the new year. The additional details have been mandated to ensure that India complies with tax information-sharing laws such as FATCA (Foreign Account Tax Compliance Act).
The Association of Mutual Funds in India (AMFI) had, in its circular in September 2015, made this information mandatory from November 1, 2015 for new investors and from January 1, 2016 for existing investors.
The information mandated as part of the requirements includes country of birth/incorporation (for entities), place of birth/incorporation, address type (residential or business, residential, business, registered office) for the KYC registered address.
Investors also have to provide information about occupation, income slab, net worth and if they or their relatives are politically exposed. Non-individuals have to provide information on specific corporate services. A select category of non-individuals should also give an ‘Ultimate Beneficiary Ownership (UBO)’ declaration.
If the investor’s tax residency is other than India, then information for all countries in which the person is a resident for tax purposes is required. This includes country of tax residency (also includes the US, where the individual is a citizen/green card holder); tax identification number (TIN) – if TIN is not available, its functional equivalent should be provided – and identification type (TIN or other).
