The chair of the Indian insurance regulator has said that the agency would request the government to apply Aadhaar (social identity card)-based Know Your Customers
norms in India.
The concept is "know your customer
" -- or KYC, as it's called on Wall Street -- and it's straightforward: Given concerns about privacy, security and fraud when it comes to money, no bank is allowed to take on a new customer without verifying its existence and vetting its background.
According to encompass Managing Director, Paul Charmatz, "The key to robust and effective Know Your Customer
is having access to the right data at the right point in the KYC process, encompass uses advanced technology to automate information and news discovery across all of the sources our customers require, and by integrating Wanda's high-quality verification services on Chinese entities and individuals into our platform, we have significantly eased the regulatory burden for our customers."
Know Your Customer
(KYC) provides a digital solution which quickly and accurately identifies and verifies companies and individuals prior to client on-boarding.
It said, "The RBI has imposed, on February 27, 2018, a monetary penalty of Rs 3 crore on Axis Bank Limited for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms." Regarding the state-run Indian Overseas Bank, the apex bank said in a separate release that it has imposed a monetary penalty of Rs 2 crore on IOB for a fraud detected in one of its branches due to failure to comply with Know Your Customer
The Registry helps financial institutions streamline the exchange of know your customer
information to support KYC compliance.
This process involves collection of supporting documents from the clients which not only leads to duplication of efforts and waste of resources but also results in clients having to repeatedly undergo Know Your Customer
(KYC) process each time they open an account with an intermediary.
The old adage, "know your customer
," has never been truer than today.
The apex Central Bank of Nigeria (CBN) has developed uniform account opening forms to ensure that depositors in banks and other financial institutions provide necessary background information for effective Know Your Customer
(KYC) due diligence.
There's only one solution--get to know your customer
How to try to avoid this situation again: Get to know your customer
- Knowing your customer is critical when it comes to credit management.