Specific Identification Requirements

Organizations must complete a specified identification procedure, which is often the basic Customer Due Diligence (CDD) process conducted before creating accounts and forming commercial partnerships. This article elaborates on ‘Specific Identification Requirements – An Accurate List In 2022’.

Before creating an account, such basic due diligence entails acquiring basic identity information from prospective customers so that initial screening and verification may be undertaken, which aids in the detection of suspicious individuals or criminals. 

KYC before account-opening

KYC rules need the gathering of information based on the kind of customer. Individuals, businesses, and corporations are the three primary categories of consumers for whom accounts are established. Other sorts of accounts, such as NGOs, charitable organizations, trusts, and others, also require identifying information for screening and verification purposes. 

The CIP, like the general identification process, must include account-opening procedures that explain the identifying information that each client must provide. Each customer’s name, date of birth, address, and identification number should be obtained prior to creating an account with them. 

Specific Identification Requirements that should be considered when creating accounts

Specific Identification Requirements

Customers including Individuals (natural persons) 

For a new customer, or individual for whom the account is to be opened, the following information shall be obtained for the initial identification and verification of the proposed customer:

  • ID card, Passport number, Driving License, or other Government-issued identification number
  • residential address
  • source of income including salary slip, and employment details
  • source of funds, where the funds are to be credited after opening the account

Legal Entities and Businesses

At the time of opening the account, the following information should be obtained, from the legal entity, or a business:

  • the legal entity’s registered business name;
  • incorporation documents;
  • registered business address or place of business;
  • contact details;
  • a partnership agreement, for partnership businesses;
  • details of the principal officers of the entity, or partnership business, authorized to open and operate the account;
  • details of the top management and key executives;
  • government-issued identity and tax number;
  • beneficial owners’ information and details for identification and verification;
  • the nature and purpose of the account and the entity’s business operations and jurisdictions;
  • the entity’s financial statements and information;
  • expected account activity, the volume of transactions, sources of money.

Charitable Organizations, Trusts, and NGOs

  • the registered name;
  • incorporation documents;
  • registered address and contact details;
  • trust deed, for trust accounts;
  • details of the principal officers, authorized to open and operate the account;
  • details of the top management and key executives;
  • government-issued identity and tax number;
  • beneficial owners’ information and details for identification and verification;
  • the nature and purpose of the account and the entity’s business operations and jurisdictions;
  • the financial information;
  • expected account activity, the volume of transactions, sources of money.

Final Thoughts

Before creating an account, basic due diligence is required to be conducted to help identify and verify the customers’ true identity. This article elaborates on ‘Specific Identification Requirements – An Accurate List In 2022’.

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