Compliance Consultancy
Risk management and Consultancy firm

Know Your Customer

Financial institutions must be able to identify and verify the identity of their customers throughout the business relationship.

Introduction to KYC Know Your Cusotmer Due Diligence obligation
Know Your Customer (KYC) vigilance procedures are part of the due diligence requirements that obliged entities are expected to implement and follow to prevent the use of the financial system for money laundering and terrorist financing.

What is Know Your Customer (KYC)?

To meet regulatory and legal requirements, obtaining this information from the customer and verifying it involves setting up, at key moments of the business relationship, careful processes of vigilance and control over the knowledge and authentication of the customer.
Know Your Customer (KYC) refers to the identification of the customer and by extension his agents, proxies, representatives, or beneficiaries. Identity information (surname, first name, date of birth, register number, home or headquarters address, articles of association, shareholding structure, company number, etc.) must be proved by means of supporting evidence which vary according to the specific case.
What is the meaning of KYC - Know Your Customer?

Understanding the source of wealth (is it legitimate?), but also the consideration of the source of funds (is it of questionable provenance?) are integral parts of the customer due diligence processes required by the KYC standards and AML regulations.

The information is verified with sufficient certainty and must comply with the duties of care imposed by the AML regulations, which incorporate the KYC standards.

What are the regulations concerning KYC?

Each country has their own set of KYC rules. In Europe, the 5th AML Directive outlines due diligence obligations that are applicable to all EU Member States.

FATF KYC recommendation
In the Financial Action Task Force’s 40 Recommendations, customer due diligence and KYC appear in Recommendation 10. Aside from establishing CDD measures, the recommendation also describes how financial institutions must identify and verify a customer information and conduct an ongoing due diligence during the relationship.

How can Pideeco help you with Know Your Customer?

KYC and CDD measures can often be time-consuming, burdensome, and confusing due to the rapid changing regulatory landscape. Outsourcing your KYC processes can result in higher efficiency but also more accurate files. We at Pideeco can assist you to ease the weight and reduce errors through our decade-long experience to:

- Help you draft or improve your KYC, CDD, and enhanced due diligence (EDD) policies and procedures including the Customer Acceptance Program, Customer Identification Procedure, and the Transaction Monitoring Procedure.

- Analyze your current KYC processes and help identify any gaps it might have.

- Establish a valid identification and monitoring processes that incorporates due diligence standards and considers national and industry recommendations that are tailor-made for your business.

- Help you navigate the often-complex regulatory landscape of due diligence.

- Help you conduct and improve the identification and verification of customer information for your company and aid in the ongoing due diligence processes by performing second-line duties.

- Train your first and second line of defence to better understand KYC and to improve their processes.

- Help you in the selection and implementation of digital solutions for KYC processes.

- Aid you in the selection, implementation, and verification of watch lists and sanctions lists, together with adverse media screening.

- Help you audit business records, beneficial owner records, balance sheets, and other type of records of your clients.

- Advise, implement, and run KYT tools.

- Assist you in writing effective and concise internal reports or for your local FIU.

Let us know how we can help! We'll get back to you lightning quick!

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