21 settembre 2022 — 2 min read
Acronyms are everywhere, and the financial regulatory system is certainly no stranger to them. KYC, AML, AFL, ATF, CDD, FINCEN…. how does one keep track of all these acronyms and why do they matter? What exactly is KYC Verification and why do we do it?
Let’s look at KYC – Know Your Customer. Know Your Customer requirements came into effect (for the most part) after 2001 and their framework is largely built from details in the USA Patriot Act. KYC verification requirements were established as a first line of defense to combat the types of crimes that took center stage post 9/11 such as cyber-crime, money laundering, and terrorist financing.
Simply put, KYC means identifying and verifying a client’s identity, their business requirements, and how their specific business operates. This is a process that is generally completed when a customer opens a new account with a financial institution, however in today’s world, KYC “refreshes” are often completed every one to two years for accuracy of record keeping. This regular practice of keeping accurate data is crucial in understanding if a client’s needs or requirements have changed and allows the regulatory bodies to keep abreast of any ownership or structural changes within the business.
Businesses and business owners will often be asked to provide identification documents such as a driver's license, passport, utility bills or, as technology becomes more prominent and automated within this space, biometric verifications.
At Xe your data and security are critical to us. We always seek to protect your information as well as following and satisfying our internal requirements to combat against any illegal behaviors as part of a robust Compliance regimen. Anytime you wish to check your KYC status, feel free to reach out to us directly either through your assigned representative or our 24/7 Help Desk manned by our global Customer Care Team.