What is KYC?
KYC Stands for ‘Know your customer’.
The objective of KYC/AML guidelines is to prevent banks from being used by criminal elements for money laundering or terrorist financing activities.
KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.
The objective of obtaining KYC information is to enable the Bank to have true identification of its customers.
KYC Stands for ‘Know your customer’.
The objective of KYC/AML guidelines is to prevent banks from being used by criminal elements for money laundering or terrorist financing activities.
KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.
The objective of obtaining KYC information is to enable the Bank to have true identification of its customers.
Purpose and Objective of KYC ?
Ensuring that only legitimate and bonafide customers are accepted
Ensuring that customers are properly identified and that they understand the risks they may pose.
Verifying the identity of customers using reliable and independent documentation
Monitoring customer accounts and transactions to prevent or detect illegal activities
Implementing processes to effectively manage the risks posed by customers trying to misuse facilities.
Ensuring that only legitimate and bonafide customers are accepted
Ensuring that customers are properly identified and that they understand the risks they may pose.
Verifying the identity of customers using reliable and independent documentation
Monitoring customer accounts and transactions to prevent or detect illegal activities
Implementing processes to effectively manage the risks posed by customers trying to misuse facilities.
Mandate documents for KYC?
The KYC guidelines of NRB ( Nepal Rastra Bank) mandates to all the banks to collect from their customers.
The KYC guidelines of NRB ( Nepal Rastra Bank) mandates to all the banks to collect from their customers.
- Photograph
- Proof of identity
- Nationality Citizenship
- Passport
- Proof of address
- Electricity bill
When do Banks need to perform KYC?
These depends on the regulatory rules, it may defer from country to country. However mostly KYC will be carried out at the following stages:
- New Client Adoption – Opening New account
- Renewals/Remediation
- Renewals of cards/instruments
- If NRB ( Nepal Rastra Bank ) demand
- Extension of new products/new business line
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