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KYC Compliance Best Practices in San Marino: A Guide for Financial Institutions

In today’s digital economy, Know Your Customer (KYC) compliance is a crucial aspect of financial services. As a regulatory requirement, KYC ensures that financial institutions (FIs) gather and verify essential information about their customers to prevent money laundering and other financial crimes.

The Importance of KYC in San Marino

In San Marino, FIs must comply with anti-money laundering (AML) regulations, which require them to implement effective KYC protocols. However, the shift towards digital banking and online services has added complexity to the KYC process. With customers able to apply for a range of financial products remotely, FIs need a comprehensive yet flexible approach to assessing risk and verifying customer identities.

Why KYC Happens at the Start of an Application

The answer lies in preventing money laundering and other financial crimes. AML regulations require FIs to verify customer identities before granting access to financial services. This is achieved through a due diligence process that assesses the customer’s identity, ownership structure, and financial position.

Seven Best Practices for KYC Compliance in San Marino

To achieve compliance, San Marino-based FIs should follow these seven best practices:

  • 1. Use Regulatory Technology (RegTech) to automate KYC processes and improve efficiency.
  • 2. Build an onboarding journey that delivers compliance efficiency and excellent customer experiences.
  • 3. Create a risk policy tailored to the business, products, customers, and jurisdictions it operates in.
  • 4. Define a risk model for low, medium, and high-risk customer profiles.
  • 5. Automate data checks using trusted and reliable data sources to create a profile of risk for each customer.
  • 6. Set team responsibilities for progressing tasks, deciding outcomes, and escalating cases for review.
  • 7. Test the KYC policy and refine it on an ongoing basis to maintain compliance and excellent customer experiences.

By implementing these best practices, San Marino-based FIs can ensure they are compliant with AML regulations while also providing a seamless customer experience.

Getting Help with KYC Compliance in San Marino

If you’re designing an approach to KYC or want to update your AML compliance processes in San Marino, PassFort can help. We offer flexible KYC solutions designed around your risk policy and the customers you serve. Get in touch with our team to discuss KYC anytime – we’d love to hear from you.