Know Your Customer (KYC) is a process which requires companies who are active within the financial services sector to carry out due diligence on their clients, by verifying their identity and preventing identity theft, fraud, money laundering and terrorist financing.

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These regulations require banks to perform ‘Customer Due diligence’ (CDD) measures such as

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• Identifying and verifying the customer’s identity on the basis of documents, data or information obtained from a reliable and independent source;
   

• identifying, where applicable any beneficial owners and verifying their identities on a risk sensitive basis
   

• Obtaining information on the purpose and intended nature of the business relationship as well things like source/origin of funds. There are also additional enhanced due diligence requirements for Politically Exposed Persons (PEPs), specifically around source of wealth.

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This also requires the Bank to understand the purpose and intended nature of the business relationship; this includes understanding where the customer’s funds and wealth come from. Following a risk based approach, Banks have to obtain sufficient information to develop a comprehensive profile of the customer and, where applicable any beneficial owners, and to understand the risks associated with the business to ensure it’s within appetite.

These checks and procedures are both required when an account is first opened and must be regularly monitored over time. This will often be at least annually but can be more frequent.

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These requirements creates a lot of work and cost a lot of time for Financial Institutions. The goal of ERCE KYC Solutions is to assist the Financial Institutions in the KYC Process by providing several services.