KNOW YOUR CUSTOMER (KYC)

It is the process used by a business to verify the identity of their clients.

Agents should ensure that proposers submit the proposal form along with the following as part of the KYC Procedure:

·         Photographs

·         Age Proof

·         Proof of address-driving license, passport ,telephone bill, electricity bill, bank passbook etc.

·         Proof of identity- driving license, passport, voter ID card, PAN card etc.

·         Income proof documents in case of high-value transactions

Anti Money Laundering(AML)

1. Money Laundering is the process of bringing illegal money into the financial system by hiding its illegal origin so that it appears to be legally acquired.
2. Money Laundering is the term used to describe the process of turning dirty money into clean money.
3. This act came into effect from 1st July 2005 to control money laundering.
4. The AML program should include :

• Internal Policies, Procedures and controls
• Appointment of a principal compliance officer
• Recruitment and training of agents on AML measures.
• Internal Audit/Control