Case Study: Customer Identification Process For A Natural Person

Verification of a person means using the KYC measures to ensure that the information received as an identification document from a customer or other reliable information sources matches the information that the person or entity provided. This article elaborates on ‘Case Study: Customer Identification Process For A Natural Person’.

Entity verification

Verification of the entity of a person is a foundational element of anti-money laundering and anti-terrorist financing regime. KYC helps to know the customer and to understand and assess any ML/TF risks that may be associated with their transactions or activities.

Customer Identification Process For A Natural Person

Case Study: Customer Identification Process for a natural person

Mr. A is a resident of the US and employed in a multinational company XYZ Limited. His only source of income is the salary income that he earns from his employment with ABC Limited.

Mr. A approaches ABC Bank in the United States, for opening his bank account. The account opening officer of the ABC banks asks for the identification document from Mr. A.

Mr. A provides the following documents to the ABC bank, for identification and verification:

  • national ID Card;
  • recent photograph;
  • employment details including current salary slip;
  • National Tax Number.

On inquiry, Mr. A informs that only his monthly salary shall be credited in the account, from XYZ Limited.

The account opening officer performs the Simplified Due Diligence measures on this case because of no apparent ML/TF risks. The account opening team checks the name of Mr. A in the OFAC negative list and checks the other identification information issued by the State.

The account opening officer may verify the identity of the customer, by referring to a government-issued photo identification document.

The account opening officer shall ensure that the photo or ID information provided by the customer is:

  • authentic, valid, and current; 
  • issued by a federal, provincial, or territorial government (or by a foreign government if it is equivalent to a Canadian document);
  • indicating the person’s name;
  • including a unique identifying number; and
  • matching with the name of the person being identified.

On identification and verification, ABC Bank opens his salary account.

Final Thoughts

Organizations are required to verify that the information received as an identification document from a customer or other reliable information sources matches the information that the person or entity provided.

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