KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification. Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud. KYC compliance responsibility rests with the banks.
Is KYC different from AML?
Broadly speaking, AML refers to all efforts involved in preventing money laundering, such as stopping criminals from becoming customers and monitoring transactions for suspicious activity. KYC refers to customer identification and screening, and ensuring you understand their risk to your business.9 sept 2021
What are KYC 3 components?
- The first pillar of a KYC compliance policy is the customer identification program (CIP). ...
- The second pillar of KYC compliance policy is customer due diligence (CDD). ...
- The third pillar of KYC policy is continuous monitoring.
What is the difference between Edd and CDD?
The main difference between Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) is that Customer Due Diligence (CDD) remains a less strict customer verification process as it only requires id information, address and assesses the risk category of the customer.21 may 2021