Are you struggling with KYC and AML compliance in your banking or financial institution? You’re not alone—many financial professionals face the challenge of understanding the specific KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements for various legal entities. But don’t worry, we’ve got you covered!
In this video, we break down everything you need to know about KYC and AML compliance, from the basics to special cases, like companies, partnerships, trusts, and foreign students. Whether you’re a banker, compliance officer, or someone interested in mastering the art of regulatory compliance, this video is for you.
We’ll guide you through essential documents required for each entity type, highlight the risks of fraud, and give you tips on due diligence to ensure your business stays compliant. Stick around to learn how to navigate the complexities of financial regulations with ease!
👉 Before we dive in, watch this video for a complete breakdown:
00:00:00 – Introduction to KYC and AML Compliance
KYC and AML aren’t just buzzwords—they’re critical to maintaining a secure financial environment. When opening accounts for different customers, banks must comply with regulations to prevent money laundering and financing terrorism. But how do we know what’s required for each type of entity?
This section explains why different legal entities—like companies, partnerships, and trusts—have unique KYC needs, and how a risk-based approach helps prevent financial crimes.
00:02:00 – Why Different Entities Have Different KYC Requirements
The regulatory framework mandates different KYC documentation for different customers, and not every legal entity has the same risk level. For instance, a company’s KYC will differ from a partnership or a trust. This section dives deeper into the specifics of each, focusing on the key documents required like the Certificate of Incorporation, Memorandum & Articles of Association, and PAN card for companies.
00:03:00 – KYC for Companies: The Key Documents
Companies are unique legal entities with specific KYC documentation requirements. To verify the existence and legitimacy of a company, documents like the Certificate of Incorporation, MOA, AOA, and board resolutions are necessary. Here’s why each document plays a crucial role in proving the authenticity of a company and its business activities.
00:05:00 – KYC for Partnerships and LLPs
Whether it’s a General Partnership or Limited Liability Partnership (LLP), the KYC process includes documents like partnership deeds, proof of existence, and PAN cards. But the twist? The KYC for beneficial owners becomes crucial if an individual holds more than 15% of the partnership.
00:06:00 – KYC for Trusts: Public vs. Private Trusts
Trusts present unique challenges. Public trusts benefit a group of individuals, while private trusts are family-based. Learn about the trust deed, registration certificate, and PAN card that need to be verified for proper KYC documentation. This section also explains how the trust’s beneficiaries must be identified.
00:07:00 – Handling Non-Face-to-Face Accounts
With digital banking on the rise, more and more customers are opening accounts without face-to-face interaction. How can you mitigate the risk in such situations? Here’s where OTP-based KYC, document verification, and remote account-opening methods come into play.
[FREE EPDF] IIBF KYC AML | Chapter 2 | Module B | IMP Concepts
00:12:00 – Special Cases: KYC for Foreign Students and NRI Accounts
Foreign students and Non-Resident Indians (NRIs) pose unique challenges when opening accounts. What documentation is required for students coming to study in India? How should you manage KYC for these accounts and ensure compliance with the relevant regulations?
Conclusion
In this video, we’ve covered everything from the basics of KYC and AML compliance to special cases that require extra attention, like foreign students and politically exposed persons (PEPs). Whether you’re a banker or compliance officer, mastering these processes will help you ensure that your institution remains compliant and free from the risks associated with money laundering and terrorism financing.
Now, it’s time to put this knowledge into action! Start implementing what you’ve learned today in your work, and don’t forget to share your thoughts, questions, or feedback in the comments below.
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For a detailed PDF summary of all the KYC and AML requirements discussed in this video, download it here! Download PDF
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