How do you conduct to know your customers?
What is KYC?
- Identify the customer.
- Verify the client’s true identity.
- Understand the customer’s activities and source of funding.
- Monitor the customer’s activities.
What is KYC checklist?
Supporting files for KYC Certificate of Incorporation (for Companies, LLP, Trusts) GST/company tax number. Confirmation of company address (Telephone bill/Electricity Bill) Passport/Driver’s License of Primary Contact and Directors. Tax file/IRD Number of Primary Contact and Directors.
What are the three components of Know Your Customer?
Know Your Customer (KYC) procedures are a critical function to assess customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws. Effective KYC involves knowing a customers identity, their financial activities and the risk they pose.
What is enhanced due diligence checklist?
Enhanced Due Diligence Checklist
- Understand your customers’ risk profile;
- Obtain additional information where necessary;
- Conduct extensive background checks and monitor transactions;
- Organize and secure your data in line with compliance standards;
- Keep the data available for regulators.
What kind of customer information need to be secured?
Data on new business Ideas. Passwords for forums where the customers market their businesses such as social media. Legal Documents numbers. Credit Cards: These should be protected for the safeguard of your hard earned money.
Who all fall under the definition of customer?
A customer is a person or company that receives, consumes or buys a product or service and can choose between different goods and suppliers. The main goal of all commercial enterprises is to attract customers or clients, and make them purchase what they have on sale. They also try to encourage them to keep coming back.
Which of the following best describes the concept of Know Your Customer?
KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.
What is customer identification process?
Customer Identification Procedure ( CIP ) Customer identification means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information.
How can you identify a high risk customer?
Classification of High Risk Customers
- Customers linked to higher-risk countries.
- Customers from High Risk Business sectors.
- Customers who have unnecessarily complex or opaque beneficial ownership structures.
- Unusual account activity.
- Lack an obvious economic or lawful purpose.
- Politically Exposed Persons (PEPs)
What makes a customer high risk?
customers linked to higher-risk countries or business sectors. customers who have unnecessarily complex or opaque beneficial ownership structures. transactions that are unusual, lack an obvious economic or lawful purpose, are complex or large or might lend themselves to anonymity.