Know Your Customer (KYC) and Due Diligence Requirements
For financial institutions, KYC regulations require reasonable due diligence to collect and retain essential data on their clients in order to open and maintain accounts. It’s a key aspect to being in compliance with US and foreign government anti-money laundering (AML) requirements. The main components of KYC are:
- Identity Verification: Making sure the client is who they say they are.
- Customer Due Diligence (CDD): Understanding financial dealings to determine potential risks.
- Ongoing Monitoring: Discovering and reporting unusual account activity.
Is KYC Just for Banking and Financial Firms?
Traditionally, banks, credit unions and other financial service providers have been the primary focus of money laundering transactions. Non-financial institutions, however, should also be cautious as to who they are dealing with. Manufacturers, distributors and other non-financial institutions, especially those doing business with foreign entities, could also be potential targets of would-be money launderers. It’s also not unusual for companies to have several layers of LLCs and dba entities. Knowing exactly who you are working with and which company is responsible for payments (or delivery of purchases) could avoid costly legal battles, profit loss and damage to your business reputation with future customers, lenders and investors. Implementing KYC on-boarding protocols would reduce potential risk for any type of company.
Centelon KYC Services
Utilizing artificial intelligence and machine learning platforms, Vesteras business partner Centelon is able to increase its CDD productivity and accuracy in collecting KYC and AML information, taking the burden off of internal staff to complete regulatory tasks. They seamlessly perform the necessary work required to ensure that customers are always in compliance – allowing clients to focus on their core business and growth.
Quality, Costs Savings and Efficiency
To stay ahead of KYC requirements, Centelon’s compliance experts streamline the documentation processes with cost-saving, quality screening. Centelon provides the efficient and secure delivery of information by identifying and verifying customer data at the time of on-boarding, and on a periodic basis with CDD, Enhanced Due Diligence (EDD), AML and Retroactive Due Diligence (RDD) services.
Vesteras & Centelon Related Services (pdf downloads)
Contact Vesteras about your KYC needs or any of Centelon’s business services.