It is considered the first step in assessing the customer’s risks, through which the risk classification begins and the appropriate decision is taken to determine the relationship with the customer.
Know your customer procedures can be defined as:
*It is the process of gathering identifying information and verifying its accuracy and legitimacy in order to establish and/or maintain a business relationship.
*The purpose of Know Your Customer (KYC) is for you to know who you are dealing with to mitigate money laundering, terrorist financing and sanctions risks, and to comply with local and internat
The KYC process includes two main parts as follows:
1. Collection of identification information.
2. Verify that information through documentation.
Depending on your customer type, e.g. Individual or company, and based on a risk-based approach, the identity information to be collected must include full information on name, date of birth, nationality, full legal name, corporate data and especially the administrative structure shown for the beneficial owner.
The requirements for KYC procedures can be classified based on the customer category as follows:
*Individuals:
- •passport copy.
- • Emirati ID.
- • Proof of residence, such as water and electricity bills.
- • Proof of source of income, such as a salary certificate.
*Companies:
- •Memorandum of Association.
- • Copies of the passports of the beneficial owners.
- • Copies of the passport of board members.
- • Business license and tax registration certificate.
These requirements are considered basic as simplified care procedures (simple CDD) for all clients, but other documents may be requested depending on the degree of risk of the client’s situation in relation to the anti-money laundering and counter-terrorism financing policy and instructions.
