KYC – CLIENT IDENTIFICATION

Financial Intelligence Centre (FIC) introduced new ways to be used by accountable institutions in identifying and verifying customers’ identities by.

The KYC (KNOW YOUR CUSTOMER) process starts when you welcome a new clients into your business and establish a business relationship with them.

Section 20A of the FIC Act prohibits an accountable institution from establishing a business relationship or concluding a single transaction with an anonymous client or a client with an apparent false or fictitious name.

Section 21 of the Act, read with Regulations 3 and 4, forces all accountable institutions to identify and verify clients before they enter into a business relationship or conclude a single transaction, as well as clients who entered into such contracts in the past.

This means that the client’s identity documentation, proof of, source of funds and/or income and whether the customer is a PIP must be obtained / determined at all times irrespective of the product or transaction involved.

You should obtain client consent to verify information using third party data sources. A client needs to be aware of this and/or give consent for you to obtain this information.- Protection of Personal Information Act, 2013