Client’s Customers: A Guide to Proof of Identity and Enhanced Due Diligence
As a financial institution, it is essential to maintain compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. One critical aspect of this is verifying the identity of your customers through proof of identity and enhanced due diligence measures.
Proof of Identity
In Kenya, the following documents are considered as proof of identity:
- Identity Card
- Driving License
- Passport
These documents must be verified and retained for a period of not less than seven years.
Address Verification
Additionally, address verification is also crucial. The following documents can be used to verify an individual’s address:
- Current utility bill (issued no more than three months ago)
- Bank statement (issued no more than three months ago)
- Document issued by a government department showing the individual’s address and name
Enhanced Due Diligence
For high-risk customers, enhanced due diligence measures may be necessary. This includes screening an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs (Politically Exposed Persons), and sanctioned individuals.
Shufti Pro provides a comprehensive AML Screening service that screens an individual’s selected ID attributes against these watchlists, ensuring compliance with regulations.
Reliance on External Services
In the absence of explicit regulations, clients may seek the services of a third party to fulfill their AML/KYC obligations. However, it is essential to note that the client will remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
As per Kenyan law, data must be retained for not less than seven years as part of AML and KYC obligations. In cases where this information is processed, collected, and managed by a relevant third party, the client is liable to collect all necessary information (Due Diligence Data) without undue delay.
Conclusion
Verifying the identity of your customers through proof of identity and enhanced due diligence measures is crucial for maintaining compliance with AML and KYC regulations. By following these guidelines, financial institutions can ensure a secure and compliant environment for their customers.