When there is 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 in mind, protecting the financial environment, along with the AML and KYC, is an essential key 🔑 to opening the door for safety, security,transparency, in an ethical financial system.
However, knowing your customer (KYC) does more than making financial institutions safer; it also allows you to pick your own clients with more confidence. 🔎
𝗞𝗬𝗖 𝗶𝘀 𝗱𝗲𝗳𝗶𝗻𝗲𝗱 𝘀𝗶𝗺𝗽𝗹𝘆 𝗮𝘀 𝗳𝗼𝗹𝗹𝗼𝘄𝘀:
*As part of an organisation's due diligence that AML requires.
*Part of the process to gather information from clients includes:
✔ Date of birth
✔ Name
✔ Address
✔ ID number
The purpose of know-your-customer (KYC) protocols is to ensure that a company has checked the following requirements about a new customer:
✔ Identify verification
✔ Entitled to receive the services offered.
✔ Not linked to potential criminal activity such as money laundering.
The KYC process has some limitations, which are:
✔ May not cover all financial crime risks.
✔ May lead to operational limitations such as human error.
✔ Lack of standardisation.
✔ Technological challenges.
'𝗖𝗮𝘁𝗰𝗵 𝗺𝗲 𝗶𝗳 𝘆𝗼𝘂 𝗰𝗮𝗻' scenario can happen if financial institutions do not implement KYC in their organisations.
𝗗𝗼'𝘀:
- Pay attention carefully to the information you have gathered.
- Prevent any KYC mismatches.
- Check the quality and clarity of the uploaded document.
- Check the date.
- Verify the address that is provided.
- Always make sure the KYC is up-to-date.
𝗗𝗼𝗻'𝘁
- Avoid emailing personal and confidential KYC information.
- Avoid taking KYC compliance seriously.
- Avoid neglecting the sufficient resources required to manage KYC checks.
- Perform any actions that may compromise your adherence to KYC regulations.
𝗟𝗶𝘀𝘁𝗲𝗱 𝗯𝗲𝗹𝗼𝘄 𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗲𝘅𝗮𝗺𝗽𝗹𝗲𝘀 𝗼𝗳 𝗞𝗬𝗖 𝘂𝘀𝗲 𝗰𝗮𝘀𝗲𝘀:
- Bank and financial institutions
- Insurance companies
- Marketplace or e-commerce platforms
- Validation of age for gambling and gaming
- Registration for travel and hospitality services
- Acquiring new or current patients at a healthcare facility