Know Your Customer (KYC) is the process of verifying the identity of your customers before they start doing business with you.
It is crucial MSBs complete the KYC process not only at account opening but also periodically update the information to remain compliant.
The objective of KYC guidelines is to prevent MSBs from being used, either intentionally or unintentionally, by criminal elements for illicit activities including money laundering and terrorist financing. Furthermore, these procedures help better understand customers and their financial dealings, significantly assisting in managing risks. Client Due Diligence (CDD) is needed in any MSB that is involved in long term business relationships.
In certain cases, clients must go through the Enhanced Due Diligence (EDD) process to mitigate any further risks associated with a high-risk individual or business.
Today, with the fast adoption of the blockchain and the introduction of a variety of cryptocurrency exchanges, KYC is a vital part of a healthy crypto business.
Get in touch with us today to learn how we can build a stringent KYC process for your MSB business.