KYC – Know Your Customer is the verification process that all companies goes through with banks whether it is personal or if it business wise, and in-depth in contains you to prove that everything regarding you and your company is legal and some banks might go to an extreme to do their due dilligence.
The term KYC is also used in referral to anti-money laundering regulations known as AML and banking regulations which oversee activities in these categories. Know your customer processes are used through bank risk teams to deem if a business is worth the risk or if more information is needed but can also end in a decline if lack of informations is submitted.
With PurePay we help you understand what it means and what is needed for you in order to work with banks and settlement bank accounts, it can be a long process but when explained right it will be a fast process.
Purpose of the Know Your Customer guidelines are to avoid banks from being exploited, intentionally or unintentionally, by criminal figures with money laundering activities. These procedures helps banks to better understand their customers and their financial dealings. It helps them to gain a better overview and foresee their risks better.
We are now writing 2018 and now it is not only the banks but also other online businesses can effectively adapt KYC into to their risk check. These four key elements are used to incorporate and build KYC policies upon:
KYC has become a mandatory and crucial part of banking procedures. It helps reduce the risk of fraudulent transactions.
Know Your Customer is to identify and define a client/person as: