KYC Compliance Mandate – What are the necessary documents

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KYC compliance is a mandate that the world demands from financial institutions around the world. KYC compliance is mainly the risk mitigation platform.

Although KYC had been presented to financial institutions in many countries, it was taken more as best practice and no commissions. It was only after the 9/11 terrorist attacks on the Twin Towers in the United States as it became a proxy for many countries. There were increased terrorist activity and with the dawn of the new century. With globalization and better communication in the world, the ills of society were unmasked. Corporate scandal had reached new heights was also a must. It was clear that the role of dirty money or laundered money was very influential in local and cross-border crime and terrorism. The need to reduce and tried to cut down these exploitations of the global financial system and became the most urgent.

KYC compliance did not originate with the coming into law of the USA Patriot Act that President George W Bush signed in October 2001. Many financial services around the world were already some kind of know customer compliance mandates in place. The need for due diligence and customer identification checks were in place to reduce operational risks and frauds and ensuring adequate and consistent levels of service. The USA Patriot Act was a confirmation and continuation of what was already in existence. The anti-terrorism law developed to create the Anti-Money Laundering (AML) Act, which is mandatory for all service providers and financial institutions.

Regulators in different countries to financial institutions or service providers accountable to ensure that the prospective account holders are identified and KYC been made. incremental to regulators are to be bills that are suspicious that a thorough and in depth KYC compliance is achieved. All KYC compliance data are stored as evidence that due diligence was carried out.

Financial institutions should adopt a highly structured system of risk intelligence report to meet their rules and KYC compliance. Selection of the system depends on the financial institution. The documents required of applicants

  • certificate
  • history or banking statements from your bank or guarantor, the
  • letter of introduction,
  • evidence of income and
  • evidence of residence.

Financial institutions should also make sure to call back the phone number specified by the customer. This is a quick way to confirm Telephone number of works belonging to the applicant. All other KYC compliance documentation must still be verified against the originals.

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