What is Know Your Customer (KYC)?
KYC Stands for “Know Your Customer”. Know your customer (KYC) policy is an important step developed globally to prevent identity theft, financial fraud, money laundering and terrorist financing. The objective of KYC is to enable merchants to know and understand their customers better and help them manage their risks prudently. The process of KYC entails identifying the customer and verifying the identity by using reliable and independent documents or information.
According to KYC policy, what is the definition of a “Customer”?
- 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)
- Beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and
- Any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction
How can I be sure my information is safe with you?
Your data protection is our utmost concern. Our policies are designed to ensure that all information is secure both in our own databases and when our customers are accessing it. Access to our systems is monitored electronically, providing an auditable record of who, what and when data was accessed. Our security is comprehensive, proactive and designed to ensure that all information is secure in your dealings with us. PPG conforms to the highest industry accepted security practices.
Where will my information be stored?
We store data in multiple tier 3+ world class data centres to ensure your data is protected. Data does not leave the country of origin but remains housed there.
What does it mean to have access to Asia Pacific countries’ identity data?
Access to Asia Pacific countries’ identity data means:
- A one-stop ID verification and AML solution
- Companies comply with Financial Action Task Force (FATF) international requirements
- Easy implementation via API, web or batch services
- Immediate electronic verification for citizens located within their country and overseas
- All searches are consumer consent based enquiries with a full audit log
- Organisations reduce their risk of bad debt/fraud
- Verification against PEP, Sanctions and international terrorist lists
Which individuals from Asian Pacific countries can you verify?
Currently PPG is able to verify Chinese, Australian, Indonesian, New Zealand, Vietnamese and Philippines individuals.
What types of situations will the need for KYC arise?
KYC has to be followed by every financial institute while dealing with customers. KYC procedures need to be adhered to by a customer in the following instances:
- While opening an account in a bank
- While applying for a credit/ debit/ prepaid card or loan
- While opening a subsequent account
- Opening a locker facility
- When there are not enough documents with the bank in existing account
- When there are changes in signatories, beneficial owners, etc
- When the bank feels it necessary to obtain additional information from existing customers based on conduct of the account
- While investing in a mutual fund
- Financial institutes may ask for a mandatory KYC process in other instances too