Know your customer programs (KYC), verify the customer’s identity and
assess the risk a customer poses to the organization, and require the
organization to understand nuanced details about the account holder,
including the nature of their business, source of income, and business
As the organization processes cash transactions for the account holder, the transaction must be evaluated against the understanding of the business to identify suspicious activity.
Know your customer risk assessment processes must be ongoing, not a one-time evaluation, and need to involve different areas of the organization to be comprehensive.
Training is essential so people across the organization understand their role in the know your customer/anti-money laundering program.