Know Your Client Information
System
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Central KYC Organization (CKO)
Introduction

Presently, at the time of opening of new client

Investors desirous of opening an account with
different intermediaries in the capital market are
required to go through the KYC process with each
intermediary again and again.

This process leads to unnecessary duplication of
efforts and wastage of resources at both
intermediary and investor level.
account, capital market intermediaries required
to perform the process of Know Your Client (KYC)
of their clients separately.
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Central KYC Organization (CKO)
Introduction

In order to bring efficiency and to avoid
duplication
of
KYC
process
with
every
intermediary, it is envisaged that a centralized
mechanism needs to be developed for the
performance of one time KYC and maintenance of
centralized KYC database.

Accordingly, the SECP constituted a Committee
on the Standardized Account Opening Form
(SAOF) which consisted of key stakeholders with
the mandate to comprehensively review various
documentation requirements and devise a
revised SAOF for Central KYC Organization (CKO )
and the TREC Holders.
3
Central KYC Organization (CKO)
Introduction

Keeping in view the significant role of the
National Clearing Company of Pakistan Limited
(“NCCPL”) in provision of various centralized
services to all three stock exchanges and other
market intermediaries, NCCPL is considered as
the most suitable for the task of establishing and
acting as CKO.

As per the recommendations of the Committee,
SAOF consists of two portions:
 KYC Application Form; and
 Combined Trading Account Opening Form & the CDC Sub-
Account Opening Form.
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Central KYC Organization (CKO)
Introduction

Accordingly, NCCPL being a CKO, is developing a
centralized web-based system namely KYC
Information System (KIS) which will maintain
separate and exclusive database for the storage
of KYC information of clients, entered by
respective market intermediaries.

Authorized market intermediaries will perform
initial KYC and In-Person Verification of their
clients.
5
Central KYC Organization (CKO)
Introduction

Following are the persons who are eligible for
registration as Authorized Intermediary (AI) with
CKO i.e. NCCPL:
 Broker Clearing Members (BCMs) or TREC Holder CM
 Non- Broker Clearing Members (NBCMs)
 Custodian Clearing Members
 Members of PMEX
 Non-Banking Finance Companies registered with SECP
 Any other entity approved by NCCPL Board
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Central KYC Organization (CKO)

Introduction

Centralized KYC Mechanism will be implemented
in phased manner:
Phase I

 For all TREC Holders; and
 Asset Management Companies and their Funds.

Phase II
 Insurance Industry; and
 Pakistan Mercantile Exchange Limited (PMEX)

Moreover in Phase I requirement of KYC through
NCCPL will be applicable on all new client codes
to be created in NCSS.
7
KYC Information System (KIS)
8
KYC Information System (KIS)
Access of AIs in KIS

Upon admission of a person as AI, NCCPL will
issue dedicated User ID and Password to AI.

Standard
Password
Policy
will
also
be
communicated at the time of admission and AI
shall be required to change password at first
login into KIS.
9
KYC Information System (KIS)
KYC Application Form for New Clients

An electronic KYC Application Form will be made
available in KIS.

AIs will submit on-line KYC Application Form duly
filed-in with standard KYC Information of a client.

AI will send such Filled-in KYC Application Form
to NCCPL electronically for its approval.

AI shall also send a copy of the Filled-in KYC
Application Form
to NCCPL along with the
following supporting documents:
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KYC Information System (KIS)
Supporting Documents:
For Individuals
For Corporate
Attested copy of CNIC, NICOP, NARA or
Passport where applicable
Certificate of Incorporation or
constitutive documents
Utility Bills, Bank Statement, Rental
Agreement, Insurance Policy and/or
Certificate from Employer shall be
provided (Any of these documents
required in case of difference in address
with CNIC ETC)
Any License issued by a regulatory body
in case of specialized companies
For salaried persons:
Memorandum and Articles of Association
• Attested copy of service card or
• Certificate from the Employer
•List of Directors on latest Form 29
•Copies of CNICs of all the Directors
•Board Resolution
- Latest Form A
-NTN Certificate
- Latest Audited Financial Statements
11
KYC Information System (KIS)
Verification and Processing of KYC Application Form

NCCPL will initiate necessary verification process of KYC
Application Form and supporting documents of a client.

KYC Application Form which is in-complete and/or lack of
supporting documents shall not be processed by NCCPL and
shortcomings will be communicated to AI.

After successful verification of KYC Application Form and
supporting documents, NCCPL will approve it electronically
in KIS.

Accordingly, UKN for the client shall be auto-generated and
linked with the Unique Identification Number (UIN) of such
client.

Such UKN will also be tagged with the requested AI.
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KYC Information System (KIS)
Verification and Processing of KYC Application Form

NCCPL will also obtain confirmation from the client for
the issuance of UKN.

NCCPL will send a letter on the mailing or registered
address of a client as mentioned in KYC Application
Form.

In case of any non-compliance of KYC requirement
within stipulated time, the UKN and/or Client Code of
such client shall be restricted by NCCPL under
intimation to AI.
13
Process Flow of KYC Registration for New Client
• BCM-AI will register new client code in NCSS as per the existing
mechanism and submit on-line Application Form (AF) in KIS by next
working day.
• After submission of AF electronically in KIS, AI will be required to submit
hard copy of AF and Supporting Documents to NCCPL within 7 working
days.
• NCCPL will initiate necessary verification processing and complete its
verification process within 7 working days from the date of receipt
of AF & documents.
• On Successful verification, NCCPL will approve KYC-AF, accordingly,
UKN will automatically be generated in KIS. However, in case of any
discrepancy, further 3 working days will be given to AI for removal of
discrepancy.
• After issuance of UKN, NCCPL will obtain written confirmation from the
client for the issuance of UKN within 15-working days.
• In case where KYC Requirements as mentioned above are not fulfilled in
KIS, UKN Tagging and/or Client Code of such client generated in
NCSS shall be restricted in NCSS to take any further position in all
Markets .
14
KYC Registration of Client already
having UKN
15
KYC Information System (KIS)
Registration of Client already having a UKN

KYC Application Form will not be required for a client
who has already been provided a UKN by NCCPL at
the time of opening an account with other AI.

AI who wants to register such client will be required to
send a UKN tagging request electronically through
KIS.

A hard copy of an authorization letter (on standard
format) duly signed by a client will also be submitted
to NCCPL within stipulated time.
16
KYC Information System (KIS)
Registration of Client already having a UKN

After successful verification, NCCPL will approve such
tagging request electronically in KIS.

NCCPL will also obtain confirmation from the client for
the tagging of his UKN with AI(s)

NCCPL will send a letter on the mailing or registered
address of a client.

In case of non-confirmation/returned mail by a client
within stipulated time, the UKN of such client shall be
restricted by NCCPL under intimation to AI.
17
Process Flow of KYC Registration for Client Already Having UKN
• BCM-AI will register new client code in NCSS as per the existing
mechanism and required to generate UKN Tagging Request in KIS by
next working day
• After submission of Tagging Request in KIS, AI will be required to submit
authority letter duly signed by a client to NCCPL within 7 working days
• NCCPL will initiate necessary verification processing.
• On Successful verification, NCCPL will approve such tagging request
and UKN will automatically be tagged with such AI in KIS. However, in
case of any discrepancy, further 3 working days will be given to AI for
removal of discrepancy.
• After approval of tagging request, NCCPL will obtain written confirmation
from the client for the linkage of UKN within 15-working days.
• In case where KYC Requirements as mentioned above are not fulfilled in
KIS, UKN Tagging and/or Client Code of such client generated in
NCSS shall be restricted in NCSS to take any further position in all
Markets
18
Updation of KYC Information of
Client having UKN
19
KYC Information System (KIS)
Updation of KYC Information of Client having UKN

If a client having valid UKN desirous to update his KYC
Information, such client will inform concerned AI to initiate
changes in KIS.

Accordingly, KYC Application Form will be updated by such AI
and send it electronically to NCCPL.

Moreover, hard copy of KYC Application Form, supporting
documents and authorization of change(s) from client will also
be provided physically by AI to NCCPL within stipulated time.

Accordingly, after successful verification, NCCPL will approve
such changes in KYC Application Form electronically in KIS.

In case where client is registered with other AI(s), NCCPL will
also inform such changes to all other AIs who have registered
such client through system reports/alerts in KIS.
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Thank You!
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