The KYC process step 4 is the presentation of information to the authorizer for review and approval. The senior management reviews the customer profiles, especially for the high-risk category customers. Further, the organization authorize officials, to review and approve the account opening of customers, therefore, the organized identification information, and evidences of verification are required to be presented in a meaningful manner.
The account opening team of the organization, for all high-risk customer cases, are required to present the information to the senior management, for their review and approval of account opening. Further, the KYC/CDD information may also be required to be presented, on a periodic basis to, the management for review of the account opened, and related KYC/CDD measures taken.
KYC Process Step 4: Present
Effective review of the information depends on the availability and presentation of the right ad current customer information. In case, any one critical information would not be presented then the senior management may reject the case. Therefore, it is very important for the account opening team, to ensure that complete information is obtained, proper verification of the customer and beneficial owner if required is performed.
Information to be presented must highlight the category of the customer, such as regular or high-risk category customer. For individuals and other low risk category customers, the basic identification information and source of income should be presented to the senior management or authorizer.
For legal entities, the information must contain all the legal documents that are required to be obtained for verification and opening of the entity account. It is important to note that information may also be required to be presented to the management, to share the progress of accounts opened during a particular period and the performance of appropriate KYC measures, for each customer. Appropriate presentation of customer profile, to the reviewer helps in achieving the KYC broader objectives.
The purpose of exploring is to ensure that KYC objectives are met, which include:
- Protection of the organization from being used for money laundering / terrorist financing activities, which the customer may perform after getting onboarded by the organization, such as a financial institution.
- Enabling the organization to avoid the risk of onboarding the criminals such as money launderers or persons associated with criminals in any manner.
Presenting the case of respective customer to appropriate authority within the organization for review and approval purposes. Any bank or financial institution must follow KYC standards. But what exactly is KYC and what is its purpose? These standards assist institutions in establishing the identities of their customers and determining the likelihood of a customer committing a financial crime. This procedure safeguards banks, financial institutions, and their customers against such crimes.