Financial Crime World

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MALTA BUSINESS NEWS: KNOW YOUR CUSTOMER (KYC) POLICY CRUCIAL FOR COMPANIES OPERATING IN THE ISLAND NATION

In recent years, the term Know Your Client (KYC) has become a popular phrase amongst businesses in Malta and beyond. However, many companies may not be aware of the procedures required to ensure that their clients are not at high risk and comply with anti-money laundering (AML) laws.

What is KYC?

The KYC process is a due diligence procedure aimed at gathering information about a client to establish a safe and confident business relationship. The most effective strategies involve knowing a customer’s identity, financial status, and any potential money laundering or terrorist financing risks they may pose.

The Three-Stage Process

Companies operating in Malta must follow a three-stage process to achieve KYC compliance:

Customer Identification Programme (CIP)

  • Submit an onboarding form
  • Politically Exposed Person (PEP) declaration form
  • Request a true certified copy of ID or passport
  • Verify residential address by requesting a utility bill issued within the last six months
  • Request company organigram to understand client’s structure better

Customer Due Diligence (CDD)

  • Assess risk level using Risk-Based Approach (RBA)
  • Determine which documents should be requested and level of due diligence to be applied
  • Conduct Customer Risk Assessment (CRA) to determine customer risk profile

Ongoing Monitoring

  • Review financial transactions and accounts based on client’s risk profile
  • Maintain ongoing and onboarded customers

Why is KYC Important?

Ensuring that your KYC checks are correct and avoiding unnecessary hassle can be challenging for companies operating in Malta. That’s where GCS Malta comes in - our experts can help you navigate the process and ensure compliance with AML laws.

Contact Us Today

For more information on how to implement a successful KYC policy, contact us today at [insert contact information]. Our experts will guide you through the process, ensuring your company remains compliant with AML regulations.