what is KYC in banking sector | What is KYC in bank? | KYC meaning in Banking (@RKSfinancialexpress)

About this video

• Video Title: what is KYC in banking sector | What is KYC in bank? | KYC meaning in Banking (@RKSfinancialexpress)
• Channel: RKS Financial Express
• Speakers: Not specified in the transcript
• Duration: 00:02:15

Overview

This video explains the meaning and purpose of KYC (Know Your Customer) in the banking sector and other industries. It details the process of verifying customer identity and background, the objectives of preventing financial crimes, and the types of information collected during KYC.

Key takeaways

• KYC stands for Know Your Customer: It's a process used by organizations to verify the identity and background of their customers before establishing a business relationship.
• Primary Use in Financial Sector: While prevalent in finance, KYC is also used in telecommunications, e-commerce, and healthcare.
• Objective: The main goal of KYC is to prevent financial crimes like money laundering, terrorist financing, fraud, and identity theft.
• Information Collected: KYC typically involves gathering personal identification details (name, address, date of birth), financial information, and supporting documents such as ID cards, passports, utility bills, and bank statements.
• Process Steps: The KYC process includes customer identification, document verification, risk assessment, and ongoing monitoring of customer activities, potentially including screening against watchlists and adverse media.
• Importance of Compliance: KYC compliance is mandatory for financial institutions to prevent illegal activities, maintain financial system integrity, and build trust with customers.