jComply
The Legal Minefield of DataProtection, 1st October 2009
Changing Science in Compliance 21 January 2009
KYC - Know Your Customer
What is KYC?
Know Your Customer is the due diligence, collection and use of information about a customer over and above the collection of basic evidence of identity like passports, driving licenses and utility bills and monitoring of the use of a firm’s products and services by its customers. Know your customer policies have become increasingly important globally to prevent identity theft fraud, money laundering and terrorist financing.
Know your customer consists of
- Customer Identification Programs (CIP)
- Enhanced Due Diligence (EDD)
Financial Supervision Commission states that all institutions conducting banking and investment business are required to comply with respective regulatory codes
- 12.5 of the Banking (General Practice) Regulatory Code under the Banking Act 1998
- 6.1 of the Financial Supervision (Conduct of Business) Regulatory Code under the Investment Business Act 1991
The companies are required to have in place adequate policies, procedures and practices for the deterrence and prevention of money laundering and the financing of terrorism.
What are the consequences and challenges of non-compliance?
Non-compliance to KYC regulations could result in huge penalties and fines. With the introduction of MiFID from 1st November 2007, KYC regulations will only become more stringent. Already the press is litered with stores of massive fines to the financial institutions by the regulators, at times in excess of £100m. Apart from financial loss, financial institutions risk losing their existing customer base as well as future growth. The challenge doesn’t end here, financial institutions are increasingly operating on a global scale, the ability to trace, link and identify customer activities and dealing with the regulations of individual countries must be seen as a challenge.
How Tabaq Software can help you
jComply makes it possible for companies to create policies based on external regulations and achieve KYC requirements. The training module in the system can help the compliance managers in creating multiple choice tests which can be published to the end users for evaluation. The system automatically maintains an audit trail which can show an auditor or a compliance manager an entire chain of events. All in all, jComply goes full circle and can help a company achieve its desired compliance ratio for a regulation.
To read more about jComply visit, jComply page.
