Financial Crime World

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Know Your Customer (KYC) and Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) Regulations for Financial Institutions

Verification Procedures

Identification of Individuals

When verifying the identity of individuals, financial institutions must obtain one or more of the following mandatory documents:

  • Valid passport
  • Driver’s license
  • Voter’s card
  • National identity card

Sanctions Check

Perform a check on the customer name against sanctions lists to ensure compliance with AML/CFT regulations.

Conduct an internet search of the customer name to gather additional information that may be relevant for risk-based CDD (Customer Due Diligence).

Risk-Based CDD

Apply risk-based CDD and preventive measures for high-risk customers, taking into account their level of risk and any specific requirements or guidelines.

Corporate Entity Verification

Name, Location, and Registered Office

When verifying the identity of corporate entities, financial institutions must obtain information on:

  • The name of the incorporated entity
  • The location of the registered office
  • The location of the registered agent

Directors and Officers

Verify the names, addresses, and telephone numbers of directors and officers.

Beneficial Owner(s)

Identify and verify the beneficial owner(s) holding 10% or more controlling interest in the company.

Verification Form

The following sample form can be used to verify corporate entities:

  • Name of Incorporated Entity
  • Location of Registered Office
  • Location of Registered Agent
  • Directors’ Information (names, addresses, telephone numbers)
  • Officers’ Information (names, addresses, telephone numbers)
  • Beneficial Owner(s) Information

Corporate Documents

The following documents are required for corporate entity verification:

  • Certificate of Incorporation (certified copy)
  • Memorandum and Articles of Association (certified copy)
  • Resolution of the Board of Directors (certified copy)
  • Certificate of Good Standing
  • Register of Members/Share Register
  • Official documentary information

Additional Requirements

Financial institutions must format their individual forms differently as long as they meet the requirements of the AML/CFT legislation and guidelines. The determination of any additional information required for high-risk clients should be documented in the firm’s enhanced due diligence procedures for high-risk clients.