What are Know Your Customer (KYC) requirements?
Under Part B of AUSTRAC’s Anti-Money Laundering / Counter-Terrorism Financing Act, it is a requirement for businesses to identify and verify their customers and understand their financial activities. Know Your Customer (or KYC) is the process by which organisations verify the identities of their clients and assess any potential risks of doing business with them, including money laundering.
KYC isn’t just for legislated industries. It is for any organisation who wants to perform advanced due diligence.
KYC Due Diligence
KYC begins during the onboarding process and is made up of a few steps of customer due diligence (CDD):
- 1. Collect information to verify the entity
- 2. Identify the beneficial owner
- 3. Avoid fraud and verify the owner with a verification of identity (VOI) check
- 4. Perform a Politically Exposed Person (PEP) and Sanction search to identify risk of involvement in bribery and corruption due to influence and power of position
- 5. Perform ongoing customer due diligence with monitoring and alerts
Anti-Money Laundering Reporting:
One of the main components of KYC is Anti-Money Laundering compliance. Organisations must show that they have reviewed the individual's financial activities in order to comply with Anti-Money Laundering reporting. These laws are in place to prevent corruption, tax evasion, theft and other crimes. AML reporting checks against PEPs, Sanctions and Adverse Media lists.
How CreditorWatch can help with AML & CTF Compliance
CreditorWatch AML screening complies with KYC & AML legislation and the report can be run on any given name and last name. We offer the following reports:
- AML Screening – Checks against PEPs, sanctions, adverse media lists. View an example AML Screening Report
- UBO Report + AML Screening - An AML Screening report can be run together with an Ultimate Beneficial Owner (UBO) report on all the individuals that are returned as individual owners.View an example AML Screening + UBO Report
Benefits of using CreditorWatch for KYC & AML Compliance
- Streamline your KYC process
- Saves time
- Stay accurate and compliant
- Comprehensive data
- Up-to-date data
- Secure data
- Verify data
- Better due diligence
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