Know Your Customer

Course Overview:

For almost the last decade, banks and financial institutions have been required to focus increasingly on anti money laundering and anti terrorism measures Adequate due diligence on new and existing customers is a key part of these controls.

Without this due diligence, banks and other client facing institutions will be in breach of the law and will also become subject to reputational, operational, legal and concentration risks.

All client facing institutions which handle money are required to comply with internationally established “Know Your Customer” guidelines.

This course will provide delegates with an insight into what is required under current regulatory and good business practice requirements

Who Should Attend:

All staff with client facing responsibilities especially those where money laundering is a real and active risk.

The Scale of the Problem:

• Global “black economy”
• Is it victimless?
• Lessons from recent scandals, including Worldcom, Parmalat, Enron and Madoff
• What is “money laundering?”

KYC

• Definition of a Customer
• Transaction profile
• Organisational structure
• Important KYC framework
• Operating guidelines
• Standards for supervisors & Banks

Essential Elements of KYC Standards

• Customer acceptance policy
• Customer identification
• General identification requirements
• The role of supervisors
• Guidelines for opening accounts
• Qualitative data
• Joint accounts
• Minor accounts
• KYC for existing accounts

Specific Identification Issues

• Trust nominee and fiduciary accounts
• Corporate vehicles
• Introduced business
• Client accounts opened by professional intermediaries
• Politically exposed persons
• Non face to face customers
• Correspondent banking

Constructing the KYC Framework

• Policies
• Roles and Responsibilities
• Senior Management and M.I. requirements
• The MLRO/NO (or equivalent) challenge!
• Risk Assessments and Procedures
• Suspicious transactions

Implementing and Managing the Total KYC

• Due diligence (on-going)
• Record keeping
• Training
• Monitoring
• Reporting
• Questions/Feedback/Discussion