AML/KYC Compliance

The principles of AML & KYC are similar concepts, the main goal of which is to ensure security of conducting financial activities.

AML and KYC policy is to eliminate anonymity in the provision of financial services for the following purposes:

  • Better understanding of customers;
  • Customer risk reduction;
  • Corruption prevention;
  • Combating money laundering and illegal financing.

To find out more, we recommend you carefully studying this material, as well as asking for personal advice on compliance with AML/KYC from YB Case specialists.

What is an AML Compliance

AML (full title AML CFT CWMDF) is a set of laws, regulations and measures to combat money laundering, illegal financing.

The development and implementation of rules and regulations, as well as the publication of anti-money-laundering manuals, are carried out by the FATF international law enforcement team.

Compliance with the AML policy (AML Compliance) allows you to achieve social responsibility of the business, as well as protection against fraudulent schemes, tax evasion, theft of money and illegal sale of goods (other things).

A thorough analysis of financial reports during the investigation of the receipt and use of illegal profits is an effective method for solving such crimes.

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One of the key requirements of AML in relation to financial institutions is to conduct a customer due diligence.

The AML Code of Practice also includes extended Due Diligence (EDD) and the principle of «know your client» (KYC). From this, it can be concluded, that the KYC principle is also a part of the AML policy.

You can learn more about the policy during the AML advice from YB Case experts.

What is a KYC Compliance

KYC (Know Your Client) is the procedure of verifying and identifying the client before an execution of financial transactions. It includes risk management, transaction monitoring, and a client eligibility policy.

Many financial institutions are guided by this principle, including:

  • Banks;
  • Payment systems;
  • Mutual and investment funds;
  • Stock exchanges;
  • Bookmakers.

Increasingly, KYC is being used to verify customers seeking to open a bank account in the name of a company in Asia or Europe, open a cryptocurrency account in the payment system, open a corporate account for IT activities in Europe and other types of risky activities.

The most striking examples of the use of a KYC policy are verification of the client’s identity by SMS code, as well as restrictions on withdrawals from an account.

KYC is used as a part of AML compliance, but is not a mandatory regulatory requirement.

If you have any questions, we recommend you asking for individual advice on ensuring KYC compliance obligations from YB Case specialists.

Also, we are ready to provide you with professional assistance in conducting a Due Diligence of counterparties or business partners.

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