KYC – Operating Guidelines | AML KYC Compliance Officer Tutorial |

 

KYC – Operating Guidelines

KYC–Operating Guidelines

It is an essential part of KYC documentation. A description of a customer or set of customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history.

In simple words, customers are segregated on the basis of the characteristics mentioned above. Different institutions may have a different set of factors and characteristics that come into play for the process of customer profiling. Such segmentation further helps in better customer service, cross-selling, and database management.

KYC Customer Identification

Customer identification means “identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information”.

Establishing Identity

The customer identification process does not start and end at the point of application. It continues till the account is finally opened. However, the process of confirming and updating the identity of any address, and the extent of additional KYC information collected, will differ from bank to bank. 

What is KYC Identity?

Identity generally means a set of attributes that together uniquely identify a natural or legal person. The attributes, which help to establish the unique identity of a natural or legal person, are called ‘identifiers’.

  • Name (in full),
  • Father’ Name,
  • Date of birth,
  • Passport number,
  • Election Card number (EPIC number),
  • PAN number,
  • Driving License number, etc.

The above-mentioned are unique identifiers available that help establishing the identity of a natural or legal person. These are termed as ‘primary identifiers’ as they help in uniquely establishing the identity of a natural or legal person. Addresses/ location and nationality and other such identifiers may serve as secondary identifiers’ as they help further refine the identity. The RBI has suggested banks to KYC mandatory. To add on, the banks have to fully comply with the provisions of the KYC procedures.

This module covers the following topics:

 

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