We implement AML & KYC measures

Know Your Customer (KYC) process is taken during onboarding to ensure that customers are being truthful about who they are, and about the business in which they are involved. The identity verification process involves an assessment of a customer’s personal information, and the nature of their business relationships. Where an entity is acting on behalf of an individual, firms should seek to establish the beneficial ownership of that entity.

KYC also take place throughout the business relationship in order to establish that a customer’s risk profile continues to match the firm’s previous assessment of them.

Accordingly, where a customer presents a particularly high risk of money laundering, the KYC process takes Enhanced Due Diligence (EDD). The EDD process may involve:

  • Collection of additional customer identification materials
  • Verification of the source of customer funds
  • Close scrutiny of the purpose of transactions or the nature of business relationships
  • Implementation of ongoing monitoring procedures

Why Anti-Money Laundering policy is needed

Money laundering is defined as the criminal practice of making funds from illegal activity appear legitimate. Money launderers attempt to do this by disguising the sources, converting cash to other forms, or moving money to places where it is less likely to attract attention.

Through these stages, funds appear to be proceeds from legal activities.

Placement is the introduction of unlawful proceeds into the financial system. Structuring, which is considered a type of placement activity, is any attempt to evade legal reporting requirements for cash/currency transactions conducted with a financial institution. Examples of structuring may include, but are not limited to:

  • Cashing checks for amounts just below reporting or recordkeeping thresholds.
  • Dividing large amounts of cash/currency into smaller sums that fall below reporting or recordkeeping thresholds and then depositing the funds directly into a bank account on one or more days, in any manner.

Layering involves moving funds around in the financial system in order to conceal the origin of the funds. Examples include, but are not limited to:

  • Exchanging monetary instruments for larger or smaller amounts.
  • Wiring or transferring funds.
  • Buying or selling securities through numerous accounts.
  • Obtaining a loan in one or more financial institutions.

Integration is the ultimate goal of the money laundering process. In this stage, the illicit funds may appear legitimate and are often used to purchase other assets, for example:

  • Real estate or other assets
  • Securities investments
  • Cash Intensive Businesses

AML (anti-money laundering) is term for the range of measures, controls, and processes that companies must put in place in order to achieve regulatory compliance.

KYC is a component part of AML, and refers specifically to the means by which companies establish and verify their customers’ identities, and monitor their financial behavior.