Thursday, May 23, 2019

KYC Regulations: Things You Have To Be Aware Of


In general term, KYC means knowing your customer. It is a procedure followed by most of the banks, for procuring information about address and identity of the customers. This process mainly helps to ensure that the services of the banks are not misused. This current KYC procedure is mainly to be completed by the banks while trying to open accounts and updating the same periodically. Now some people might mistake KYC with AML, but there is a difference between these options for the people to know. Understanding these differences will help you to use KYC a lot better.

Difference between AML and KYC:

KYC is defined to be one of the anti-money laundering process or even a smaller part of AML and Combating Financing Terrorism or CFT. KYC is used as a term for describing the ways, in which a business gets to identity and verify the identity of the said client. KYC happens to be one such part of AML, which also stands for Anti Money laundering. So, you cannot just substitute AML with KYC as the latter won’t cover the entire process otherwise followed by AML. Understanding the difference will help you use the regulations properly.

Business identification at its best:

KYC or Know Your Customer is a procedure of identifying a business and even verifying   the identity of the clients. Banks won’t work with any client on financial section if they are not aware of the person they are dealing with. It is also used to refer to the present bank regulation in use for governing safety activities. You can always get in touch with the AML or KYC Officer, who is mostly responsible for amending, opening reviewing and exiting clients as per the established policies and procedures. You can always have towards kyc regulations to know more.