Money laundering and terrorist financing occurs all around the world. No country is immune. These threats can be minimized by using Know Your Customer. You will learn what exactly is meant by Know Your Customer and how to implement it in your organization. Some countries require organizations in specific industries to have a Know Your Customer Program. This program is designed to help organizations minimize the risks posed by money laundering and terrorist financing. You will gain an understanding of the parts that make up a Know Your Customer Program and what due diligence is. Part of a Know Your Customer program is the Customer Identification Program. This involves verifying a customer’s identification. By watching this course, you will learn how this program works and when it should be used. You will learn different techniques used to verify a customer’s identification as well as how long some information should be retained.
Learning Objectives
- Understand what Know Your Customer is
- Learn how to implement a Customer Identification Program
Skills you’ll gain
Customer AnalysisCustomer DevelopmentCustomer ProfilingCustomer MarketingCustomer RiskKnow Your CustomerWhat You'll Learn
- Understand what Know Your Customer means and how to implement it in your organization
- Identify the parts that make up a Know Your Customer Program and what due diligence is
- Implement a Customer Identification Program to verify a customer's identification
- Apply different techniques used to verify a customer's identification
- Determine how long certain customer information should be retained
- Recognize when a Customer Identification Program should be used
Key Takeaways
- Money laundering and terrorist financing occur around the world, and no country is immune to these threats.
- A Know Your Customer Program is designed to help organizations minimize the risks posed by money laundering and terrorist financing.
- Some countries require organizations in specific industries to have a Know Your Customer Program.
- The Customer Identification Program is part of a Know Your Customer program and involves verifying a customer's identification.
- Verifying a customer's identification involves different techniques, and some information should be retained for a certain length of time.
Frequently Asked Questions
What will I learn in this course?
You will learn what Know Your Customer means and how to implement it in your organization, the parts that make up a Know Your Customer Program, what due diligence is, and how to implement a Customer Identification Program to verify a customer's identification.
What is a Know Your Customer Program for?
A Know Your Customer Program is designed to help organizations minimize the risks posed by money laundering and terrorist financing. Some countries require organizations in specific industries to have one.
What does the Customer Identification Program cover?
The Customer Identification Program is part of a Know Your Customer program and involves verifying a customer's identification. The course covers how this program works, when it should be used, different techniques used to verify identification, and how long some information should be retained.
What topics does the course include?
The course includes two lessons: Know Your Customer and Customer Identification Program.
Transcript
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(upbeat music) Fully aware of who your customers are is an important tool in the fight against money laundering and terrorist financing. Let's go over the methods to ensure that you truly know your customers. While most organizations already strive to know their customers when it comes to sales, this serves a different purpose when it comes to anti money laundering and counter terrorist financing. In this situation, know your customer is about verifying the identity of your customers. This can be done before conducting business with them or during the time you are doing business with them. This lesson will cover know your customer in general. Your country may have know your customer laws you need to be compliant with. Make sure you look into what laws you must comply with. Know your customer involves performing customer due diligence. This due diligence can be separated into three levels. Basic, simplified and enhanced. Let's take a look at each of these. Basic due diligence. This level of due diligence applies to all customers. You need to identify your customers and assess the risks they pose to your organization. Simplified due diligence. Sometimes customers do not pose a high risk to an organization. In these cases, organizations may complete simplified due diligence. This involves just the identification of customers without verification. Enhanced due diligence. Some customers may pose a higher risk to your organization. You should take a closer look at these individuals before engaging in business with them. This extra due diligence can take the form of gathering more information about the customer or verifying the source of their income. While the processes for performing this due diligence can vary based on applicable laws, the information needed is generally the same. This information can include full name, mailing address, contact number, email address, birth place and birthday, gender marital status, nationality, government issued ID and tax ID numbers, occupation and signature. Here's some things you can do when you're performing your customer due diligence. Gain a good understanding of their business activities, classify the risk category and what type of customer each potential customer is. Follow the correct processes to ensure enhanced due diligence is done when needed including existing customers and keep all records of every time you perform basic and enhanced due diligence. Organizations can perform this due diligence as part of a know your customer. This program can consist of three parts. Due diligence, customer identification program, and ongoing monitoring. Even after your organization begins doing business with a client, it's important to continue to monitor them as the rest of your organization may change. You should take note of any spike in activity or unusual activity. Now let's take a look at what exactly a customer identification program is.
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