WHAT KYC STANDS FOR?
KYC (Know Your Customer) is an internationally accepted standard systematic process that business entities carry out in order to verify the identity of their respective potential customers in the economic matters especially for industrial with lumpsum amount of investments with high risk elements. Know Your Customer Regulations and AML aids business to identify customers having criminal intentions and protecting their business from any illicit financial transactions.
Know Your Customer or KYC have a crucial role in determining and eliminating the risks associated with serious crimes like money laundering, bribery, corruption, fraud, financing for terrorist activities, or any other illicit financial activities. KYC Services are mainly active in banking and insurance fields, financial institutions and designated Non- Financial Businesses and Professions (DNFBPs) to assess a detailed customer due diligence (CDD) process. It protects all the stakeholders while they invested a considerable amount in stake.
HOW IS IT EFFECTIVELY IMPLIMENTED
The implementation of an effective AML Law and KYC process is done after customer profiling by checking their personal and geographical history as well as criminal background if any, customer identification by verifying their valid identity and income documents, address proof and birth certificate, biometric and face verification as well, by tracking the source of income of the customer by monitoring effective transaction and enquiring customers for proper authority if any suspicious transactions found and better risk management by doing follow ups on the customer activity and informing the authorities if suspicious activities found if any are them respectively. It also requires identification and periodic updating of customer’s sensitive and personal information.
KYC REQUIREMENTS FOR CUSTOMERS AND CORPORATES/ BUSINESS ORGANIZATIONS/
KYC procedures are more friendly with business entities not for the customer’s point of view. The protection of client is a mandatory responsibility by keeping their data confidential by encryption and advanced authentication in the KYC Process. This helps the legitimate company to get an idea about the customer background and transactions as well.
Business enterprises usually start to evaluate and recognize their clients with their authenticity and general credentials. Customer Due Diligence (CDD) aids the organization in this situation. It leads the organization to be protected against the evils of money laundering and financing or terrorist activities from high-risk customers such as criminals, Politically Exposed Persons (PEPs), and terrorists posing a risk to the business organization. This helps the business entity to easily trace out and identify the category of due diligence to be applied to a specific customers who belong in the high-risk categories. Know Your Customer process also helps to build trust in a professional relationship between clients and corporates by giving insights into the nature of the customer’s activities which results in the overall improvements servicing and management over the course of the relationship.
By keeping in touch with a best AML Law Consulting Service Providers in UAE simplifies and helps your business to remain in flexible in compliance with the provisions of AML LAW anywhere in UAE. `
Powered by Akira Software Solutions Pvt Ltd
