BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Keep your Customer
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Know your Credit
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Keep your Credit
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Know your Customer
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Detailed explanation-1: -Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing. KYC involves several steps to: establish customer identity; understand the nature of customers’ activities and qualify that the source of funds is legitimate; and.
Detailed explanation-2: -Why is KYC important in banking? KYC is a legal requirement for financial institutions and financial services companies to establish a customer’s identity and identify risk factors. KYC procedures help prevent identity theft, money laundering, financial fraud, terrorism financing, and other financial crimes.
Detailed explanation-3: -KYC, or “Know Your Customer", is a set of processes that allow banks and other financial institutions to confirm the identity of the organisations and individuals they do business with, and ensures those entities are acting legally.
Detailed explanation-4: -For the purpose of KYC policy a ‘customer” may be defined as: A person or entity that maintains an account and/or has a business relationship with the bank; One on whose behalf the account is maintained (i.e. the beneficial owner);