FAQs
A KYC document is a document that provides proof of your identity and address. It is typically used by financial institutions to verify your identity and to prevent money laundering (AML).
What is the purpose of KYC documents? ›
KYC is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information. For the purpose of verifying the identity of: - Individual customers, bank will obtain the customer's identity information, address and recent photograph.
What are the 4 pillars of KYC? ›
The four pillars, or four KYC elements, that banks and financial institutions look at when setting up their KYC programs are the customer acceptance policies and procedures, customer identification program and customer due diligence, risk management, and ongoing monitoring.
What are the three most important components of KYC? ›
The 3 main KYC process steps are client or customer identification, customer due diligence (including enhanced due diligence), and ongoing monitoring.
What is the documentation process of KYC? ›
Here are the steps for an offline KYC verification process.
- Download the KYC form.
- Fill in the form with your details, specifically your Aadhaar, or PAN.
- Visit the nearest KYC registration agency (KRA).
- Submit the form with the attached ID and address proof.
- Complete biometrics if required.
KYC requirements vary depending on the sector, jurisdiction, and the customer's risk profile. However, some of the most commonly accepted KYC documents are ID cards, passports, driving licenses, utility bills, bank statements, and credit card statements.
What are the essential documents for KYC compliance? ›
The UID or unique identification number that comes with an Aadhar card. You can also use your voter ID, passport, or driving license. Your PAN card with photograph. An essential document bearing the photo of the applicant.
What are the 5 stages of KYC? ›
The five stages of KYC – customer identification, customer due diligence, risk assessment, ongoing monitoring, and reporting suspicious activities – are essential to ensure compliance with regulatory requirements.
What is KYC basic concepts? ›
Know Your Client (KYC) is a standard used in the investment and financial services industry to verify customers and know their risk and financial profiles. Three components of KYC include the customer identification program (CIP), customer due diligence (CDD), and enhanced due diligence (EDD).
What are the 6 attributes of KYC? ›
6 attributes of KYC
- Name. The name you provide should match with the name on your PAN card, that is, the name as on the income tax site.
- Address. Make sure your address matches with the one on the address proof provided (Refer KYC checklist to know the documents accepted)
- PAN. ...
- Mobile Number. ...
- Email ID. ...
- Income Range.
The KYC end-to-end process, or KYC lifecycle, includes: KYC verification and due diligence: During onboarding, verification and due diligence confirms the customer's identity and assesses their level of financial crime risk.
What is the major objectives of KYC and AML? ›
What is KYC & AML? The Know Your Customer (KYC) process is performed to verify the identity of new customers, and to prevent illegal activities, such as money laundering or fraud. KYC is undertaken as part of Anti-Money Laundering (AML) requirements.
What information does KYC require us to obtain and record? ›
The identity information you must collect and verify depends on the type of customer and the level of ML/TF risk posed by the customer. For individual customers, this information includes, as a minimum requirement, their full name as well as either their residential address or date of birth.
What is the objective of doing KYC and AML procedures? ›
What is KYC & AML? The Know Your Customer (KYC) process is performed to verify the identity of new customers, and to prevent illegal activities, such as money laundering or fraud. KYC is undertaken as part of Anti-Money Laundering (AML) requirements.
Who needs KYC? ›
All financial institutions are mandated by the RBI to do the KYC process for all customers before giving them the right to carry out any financial transactions.
