Thursday, 3 April 2014

KNOW YOUR CUSTOMER (KYC)



KYC is used for customer identification process. It helps in determining:
  • True identity of account holder.
  • Sources of Funds.
  • Nature of Customers Business.
  • Reasonableness of operations in the account in relation to the customer's business.
which helps banks to manage their risk prudently.

The objective of KYC guidelines is to prevent banks being used intentionally or unintentionally by criminal elements for money laundering.

Reactions:

0 comments:

Post a Comment