KYC compliance requires financial institutions to follow Know Your Customer regulations that are devised by global regulatory authorities. A firm’s KYC process is implemented based on national and global Know Your Customer regulations to avoid non-compliance fines. This procedure is considered a key part of the CDD (Customer Due Diligence) process which is crucial for fraud prevention. KYC procedures involve the identity verification methods of customers to perform an in-depth risk assessment. With Know Your Customer regulations being enforced on companies, it proved to be a disincentive for criminals and fraudsters.īy the end of this blog, you will gain a clear understanding of the KYC process and what the global regulations regarding it look like. Its introduction had become mandatory following a wide increase of legal and financial crimes. In the United States, Know Your Customer regulations were introduced in 2001 in the Patriot Act. However, after the attack of 9-11, the situation drastically changed. Global Know Your Customer (KYC) Regulations In 2021īefore the emergence of specific Know Your Customer (KYC) regulations, KYC practices were mainly targeted at companies that were at high risk of money laundering.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |