Under Banks’ Microscope: How KYC (Know Your Customer) bank compliance is going to affect you

Banks have been required to enforce their Final Customer Due Diligence Rule and will “look through” both individual and nominal legal entity account holders to clearly identify them.

Did you receive a KYC (Know your Customer) Form from your bank? Here’s what you have to know:

KYC Policies enable banks to know their clients and comply with The FinCen guidelines with respect to the U.S. Bank Secrecy Act/Anti Money Laundering (AML) regulations.

Under these regulations every financial institution has to obtain beneficial ownership and control information when an account is being opened. AML Compliance includes analyzing the account relationship, develop a customer risk profile and conduct ongoing monitoring to identify and report suspicious transactions.

If you are an individual you will be asked to submit copies of your ID or passport, form W9 or W8Ben, and documents proving your current address.

If you are a legal entity you will be asked to verify the legal status of the entity, the identity of the authorized signatories and the identity of the beneficial owner/s, and/or controllers of the account and the chain of ownership of the entity.

If you refuse or delay your answer, the Bank is entitled to refuse to open new accounts or discontinue its relationship with you.

Any questions or concerns?  Please contact us, we at GC Consultants, Inc. are here to help you and clarify all your doubts.

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