MALTA: KNOW YOUR CUSTOMER REQUIREMENTS - A COMPLIANCE GUIDE

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Introduction

As businesses operating in Malta, it’s essential to understand the intricacies of Know Your Customer (KYC) requirements. The process involves gathering information on clients to ensure a safe and confident business relationship. Our compliance experts outline the procedures to follow in this article.

What is KYC?

The KYC process is a due diligence procedure used by businesses to assess customer risk and comply with Anti-Money Laundering (AML) laws. It’s crucial to know a customer’s identity, financial status, and potential money laundering and terrorist financing risks.

The KYC Process

The KYC process consists of three main steps:

1. Customer Identification Programme (CIP)

• Submit an onboarding form
• Politically Exposed Person (PEP) declaration form
• Request a true certified copy of ID or passport
• Utility bill issued within the last six months to verify residential address
• Company organigram may be required to understand company structure

2. Customer Due Diligence (CDD)

• Mitigate potential risks posed by clients, whether natural persons or legal entities
• Employ a Risk-Based Approach (RBA) to assess customer risk using a Customer Risk Assessment (CRA)
• Determine which documents should be requested and the level of due diligence required

3. Ongoing Monitoring

• Review financial transactions and accounts based on customer’s risk profile
• Essential step in maintaining both ongoing and onboarding customers

Why Choose GCS Malta?

Our experts at GCS Malta can ensure your KYC checks are accurate and hassle-free. Contact us today for more information.

About the Author

Michael Sant is a compliance expert with extensive knowledge of KYC requirements in Malta.