Quick Answer: What Are The Three Components Of KYC?

What are the types of KYC?

There are two types of KYC: Aadhaar-based KYC.

In-Person-Verification (IPV) KYC..

What is KYC verified?

The full form of KYC is ‘Know Your Customer’ It is a verification process, officially mandated by the Reserve Bank of India, that allows an institution to confirm and thereby verify the authenticity of their customer. This authenticity is to be sure of the identity and the address of the customer.

Are KYC Safe?

As per the guidelines of RBI (Reserve Bank Of India) all customer of any wallet or bank who want to use for higher balance (Limit will increases) for sending money or for another purpose. It is safe to provide these details. KYC stands for Know Your Customer.

What is EDD in KYC?

Enhanced Due Diligence (EDD) is the KYC process of gathering data and information to verify the identity of clients, but with additional information required to mitigate the risk associated with the client. … EDD also requires “reasonable assurance” when calculating a KYC risk rating.

What is CDD EDD?

CDD aims at collecting data about customers’ identity and contact information as well as measuring their risk. EDD is used for high-risk customers, aka those who are more likely to implement related to money laundering and terrorism financing activities due to the nature of their business or transactions.

What is the list of KYC documents?

Officially valid documents (OVDs) for KYC purpose include: Passport, driving licence, voters’ ID card, PAN card, Aadhaar letter issued by UIDAI and Job Card issued by NREGA signed by a State Government official.

What is KYC in SBI bank?

Customers can submit proof of address and identity to their bank branch via email or courier. … The residence visa copies should be attested by foreign offices, notary, Indian Embassy, officers of correspondent banks whose signatures are verifiable through an authorized branch of the SBI.

What is the first component of KYC?

The first step in any KYC program is a bank’s Customer Identification Program (“CIP”) which requires a bank to collect and document a customer’s name, date of birth, address and identification presented.

What are the four key elements of a KYC policy?

Banks should frame their KYC policies incorporating the following four key elements: Customer Acceptance Policy; Customer Identification Procedures; Monitoring of Transactions; and.

Is KYC mandatory?

KYC or ‘know your customer’ is a mandatory verification procedure carried out by any banks, financial institutions, and other Indian organisations with the goal of minimising illegal activities like money laundering.

What triggers KYC?

Standards. The objective of KYC guidelines is to prevent businesses from being used by criminal elements for money laundering. Related procedures also enable businesses to better understand their customers and their financial dealings. This helps them manage their risks in a well-judged manner.

What are the components of KYC?

The KYC Policy consists of the following four key elements.Customer Acceptance Policy.Customer Identification Procedures.Monitoring of Transactions.Risk Management.

What is KYC checklist?

As part of the KYC process you will also need to request as verification copies of these KYC documents: Certificate of Incorporation (for Companies, LLP, Trusts) GST/company tax number. Confirmation of company address (Telephone bill/Electricity Bill) Passport/Driver’s License of Primary Contact and Directors.

What is the KYC process?

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.

What are the methods of money laundering?

Money Laundering MethodsStructuring. Also called smurfing, it is a method of placement whereby money is broken into smaller deposits. … Bulk Cash Smuggling. … Cash-intensive businesses. … Trade-based laundering. … Shell companies and trusts. … Round-tripping. … Bank capture. … Casinos.More items…•May 19, 2020

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