KYC & AML

OCTOBER,2013

Know Your Customer (KYC)

Key Elements : Customer Acceptance Policy
customer.

To be aware of the identity of the

Customer Identification Process

customer.

To be aware of the location of the

Monitoring of Transactions
tune with the nature of business.

To assess whether the pattern of activity is in

Risk Management
undesirable elements.

Prevent the banking system from being used by

Anti-Money Laundering (AML)

What it is : Money Laundering is the activity for giving legitimacy to black money (unaccounted money) and dirty money (proceeds of illegal activities). AML Initiative : started since late 90s, primarily to prevent flow of funds to the terrorist groups through the banking system. This led to more stringent KYC requirements, as KYC is a key element of AML process.

KYC & AML

Knowing the customer fully, not just his identity and address but also his activity, nature and volume of transactions, sources of his funds and also monitoring the activity in the account on continuous basis, could help bank identify suspicious transactions and report it to the law enforcement agencies. Ensuring business growth, providing delightful customer service and ensuring compliance with antimoney laundering guidelines are conflicting demands which need to be balanced with diligence and sensitivity.

KYC DOCUMENTS : Identity Proof Address Proof INTRODUCTION : Relationship No. of months / years Address

OPENING OF ACCOUNT
Opening a bank account of i) An Individual ii) Proprietorship concern iii) Partnership firm iv) Companies Pvt. Ltd. and/or Public Ltd. v) Societies & Associations vi) Trusts

THANK YOU