DIR 3 KYC Due Date: Get Ready to Comply

Introduction

Complying with the DIR 3 Know Your Customer (KYC) requirements is crucial for Authorized Depositary Participants (ADPs) and Authorized Participants (APs) in the International Financial Services Centre (IFSC) of India. The Directorate of Revenue Intelligence (DRI) has set a strict due date for DIR 3 KYC submission to ensure transparency and compliance in the financial sector.

Due Date for DIR 3 KYC

The due date for DIR 3 KYC submission for existing ADPs and APs is December 31, 2022. New ADPs and APs must submit their DIR 3 KYC within 30 days of receiving their Certificate of Registration.

Why is DIR 3 KYC Important?

DIR 3 KYC plays a vital role in:

• Identifying and verifying the beneficial owners of companies operating in the IFSC
• Preventing money laundering and terrorist financing
• Maintaining the integrity and reputation of the IFSC
• Facilitating cross-border transactions and investments

Penalties for Non-Compliance

Failure to submit DIR 3 KYC by the due date can result in penalties, including:

• Monetary fines of up to INR 1 lakh
• Suspension of operations
• Revocation of registration

Step-by-Step Approach to DIR 3 KYC

1. Gather Required Documents

• Company Registration Certificate
• Director's KYC documents (PAN, Aadhaar, etc.)
• Beneficial Owner's KYC documents (if applicable)
• Source of funds and wealth
• Business plan and financial projections

2. Register on the DRI Portal

• Visit the DRI website (https://www.dri.gov.in/drinew/)
• Register and create an account
• Obtain a Digital Signature Certificate (DSC) for e-signing the DIR 3 KYC

3. Prepare and Submit DIR 3 KYC

• Access the DIR 3 KYC form on the DRI portal
• Fill out the form accurately and thoroughly
• Attach all supporting documents
• Verify and e-sign the form
• Submit the DIR 3 KYC online

4. Track Submission Status

• Monitor your DIR 3 KYC submission status on the DRI portal
• Receive an acknowledgment receipt and notification of approval or rejection

Tips and Tricks

• Start the DIR 3 KYC process early to avoid last-minute rush
• Ensure all documents are complete and accurate
• Contact the DRI helpdesk for assistance if needed
• Keep a record of your DIR 3 KYC submission for future reference

Common Mistakes to Avoid

• Submitting incomplete or inaccurate documents
• Missing the due date for submission
• Failing to maintain confidentiality of submitted information
• Providing false or misleading information

Frequently Asked Questions (FAQs)

1. What is the purpose of DIR 3 KYC?

A: To prevent money laundering and terrorist financing in the IFSC.

2. Who is required to file DIR 3 KYC?

A: ADPs and APs operating in the IFSC.

3. What is the due date for DIR 3 KYC submission?

A: December 31, 2022 for existing ADPs and APs.

4. What are the consequences of non-compliance?

A: Penalties, suspension of operations, and revocation of registration.

5. Where can I find more information on DIR 3 KYC?

A: DRI website (https://www.dri.gov.in/drinew/)

6. How can I clarify any doubts regarding DIR 3 KYC?

A: Contact the DRI helpdesk at (022) 2562 4141.

Interesting Stories

1. The KYC Mix-Up

A beneficial owner submitted their DIR 3 KYC documents with their passport number instead of their PAN number. The DRI rejected their submission and sent them a notice for corrective action. The beneficial owner realized their mistake and resubmitted their DIR 3 KYC with the correct documents, avoiding any penalties.

2. The Last-Minute Dash

An ADP realized the DIR 3 KYC due date was approaching only a few days before it. They scrambled to gather all the required documents and submitted their DIR 3 KYC just hours before the deadline. Lesson learned: procrastination can be costly!

3. The Overzealous Clerk

A clerk at an AP was so eager to complete their DIR 3 KYC submission that they accidentally submitted the same set of documents twice. The DRI noticed the duplication and rejected both submissions, requesting a fresh submission. The clerk had to repeat the process, wasting valuable time and resources.

Useful Tables

Table 1: Due Dates for DIR 3 KYC

Table 2: Required Documents for DIR 3 KYC

Table 3: Penalties for DIR 3 KYC Non-Compliance

Conclusion

Complying with the DIR 3 KYC due date is non-negotiable for ADPs and APs in the IFSC. By submitting accurate and complete DIR 3 KYC documents, these entities play a vital role in maintaining the integrity and credibility of the financial sector. Failure to comply can lead to serious consequences, including penalties and revocation of registration. Remember, it's your responsibility to meet the due date and stay compliant.