Know Your Customer (KYC) is a standard banking policy introduced globally in 2001 as a patriot act passed after 9/11. This banking process provides a variety of means to detect terrorist behaviors. The act also prevents money laundering, illegal funding, and financial fraud. On a more personal level, it lets every bank know customers like you better.
KYC allows banks to manage any risk on your behalf and provide more efficient services. Every bank is required to follow KYC policies. Its elements include monitoring transactions, identifying a customer, information of a customer, and ways of eliminating possible risks.For you to successfully create a savings account, banks need to know your identity through reliable information and documents. These documents could be the following;
These files are for documentation for KYC. You can use this reliable information to apply for a loan or credit card, openanother account, and invest in mutual funds. Banks have the right to close the account or end banking relationships after providing due notice to a customer who failed to comply with the KYC policy.
Digital currency gets used more in the modern era. On the other hand, KYC undermines one of the critical principles of the crypto world, which is anonymity. KYC always ensures transparency when it comes to transactions. Here are the main advantages of implementing KYC in a cashless society:
However, ensuring KYC is an act of anti-money laundering (AML). Not only are you complying with the international regulations, but it also minimizes the number of critical acts against the safety of your ICO tokens. It is one way to ensure the safety of ICO projects from cyber threats.
To avoid deploying KYC with a failure is to change and adopt the right one. Go for the institutions that value high standards when it comes to its KYC processes. It might be hard for you to enter, but it is surely worth your time, money, and effort in the long run.
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