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KYC Procedures in French Guiana: A Guide to Customer Verification and Risk Assessment

In the financial sector, Know Your Customer (KYC) procedures are crucial in preventing money laundering and ensuring compliance with regulations. In French Guiana, businesses must adhere to a strict set of guidelines when it comes to collecting and verifying customer data.

Collecting and Verifying Customer Data

The first step in the KYC process is to collect and verify essential information about potential customers. This includes their full name, address, date and place of birth, and country of residence. To confirm this information, businesses must request and review relevant KYC documents such as national ID cards and proof of address.

  • Document Verification: To streamline this process, some companies are turning to AI-based verification solutions like Netheos ID, which can complete a thorough 4-point check on document quality, type, consistency, and authenticity in just three seconds.
  • Customer Data Collection: The collected data should be accurate and up-to-date. Businesses must ensure that the customer’s information is verified through reliable sources.

Understanding the Business Relationship

As part of the KYC process, businesses must understand why customers want to use their products or services and how they intend to utilize them. This includes gathering information on transaction types, sizes, frequencies, and countries involved. By doing so, companies can detect any suspicious activity potentially linked to money laundering.

  • Transaction Analysis: Businesses should analyze customer transactions to identify patterns and anomalies that may indicate potential money laundering.
  • Customer Due Diligence: Conduct thorough due diligence on customers to ensure they are legitimate and not involved in any illicit activities.

Risk Assessment

The next step is to assess the level of risk posed by each customer. To do this, businesses must answer a series of questions, such as:

  • Is the customer a politically exposed person (PEP)?
  • Does the customer’s company present a high risk of financial crime?
  • Is the customer suspiciously trying to reduce their tax liability?
  • Is the customer interested in a service considered high-risk?

Updating Customer Data: KYC Remediation

Customer information is subject to change over time, so it’s essential to regularly review and update KYC data to ensure its accuracy. This process, known as KYC remediation, involves updating risk levels and collecting additional information if the customer’s circumstances change.

  • Regular Review: Businesses should conduct regular reviews of customer data to identify any changes that may impact their risk level.
  • Additional Information: If a customer’s circumstances change, businesses must collect additional information to update their risk level accordingly.

Data Retention

Under current regulations in French Guiana, reporting entities must keep KYC documents for a certain number of years after the end of the business relationship. The retention period for data relating to due diligence obligations is set by law at five years.

  • Data Storage: Businesses should store customer data securely and in accordance with applicable laws and regulations.
  • Data Disposal: When disposing of customer data, businesses must ensure that it is done in a secure manner to prevent unauthorized access.