Why does KYC matter?

The extensive use of new technologies and the internet makes it necessary to define standards that help fight online fraud e.g.

  • Money Laundering
  • Terror Financing
  • Corruption

The KYC procedure responds to a legal and global imperative for any type of business that wants to onboard a user as a client and knows that they are trustworthy.

If you want to know about Compliance at Acuitytec, then you can check various online sources.

The extensive use of new technologies and the internet makes it necessary to define standards that help fight online fraud e.g.

  • Money Laundering
  • Terror Financing
  • Corruption

The KYC procedure responds to a legal and global imperative for any type of business that wants to onboard a user as a client and knows that they are trustworthy.

KYC regulations have become an increasingly critical issue for almost any institution that interacts with money (so, just about every business):

  • Banks
  • Credit unions
  • Wealth management firms and broker-dealers
  • Finance tech applications (fintech apps), depending on the activities in which they engage
  • Private lenders and lending platforms

In an increasingly global economy, financial institutions are more vulnerable to illicit criminal activities. Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering, and terrorist financing.

What are the three components of KYC?

  • Customer Identification Program (CIP): The customer is who they say they are
  • Customer Due Diligence (CDD): Assess the customer’s level of risk, including reviewing the beneficial owners of a company
  • Continuous monitoring: Check client transaction patterns and report suspicious activity on an ongoing basis