The Financial Action Task Force (FATF) is a global watchdog that combats money laundering and terrorist financing by setting international standards and identifying countries with weak anti-money laundering measures.
What FATF does
FATF sets international standards to prevent illegal activities and identifies countries with weak anti-money laundering and counter-terrorist financing measures (AML/CFT). The organisation maintains black and grey lists of countries based on their compliance with these standards.
How FATF lists affect Zerodha accounts
- Blacklisted countries: Zerodha does not allow account openings for clients residing in countries blacklisted by the FATF.
- Grey-listed countries: You may open an account if you reside in a grey-listed country, provided Zerodha's compliance team approves all your submitted documents as satisfactory.
You can see the current FATF black and grey listed countries by visiting fatf-gafi.org/en/countries/black-and-grey-lists.html.
Enhanced due diligence for grey-listed countries
Zerodha may request additional income proof from NRI clients who reside in countries that are part of the FATF grey list. Enhanced due diligence protocols are implemented for these clients to verify the source of their income within their country of residence, in accordance with directives from FATF and SEBI.
Acceptable income proof for grey-listed residents
You can submit any of the following as income proof:
- Latest month's salary slip
- Last 6 months' bank statement
- Proof of foreign tax payment