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KEY COMPONENT - KYC (KNOW YOUR CUSTOMER - A FULL SPECTRUM CHINA STYLE CONTROL MECHENISM
Note: The E.U and other nations will go on asset grab using negative interest rates, high taxes and full spectrum survelience to control the citizens money whilst draining into their projects. The ECB is holding 27 nations hostage in the E.U, china and asia pacific are holding major developing countries hostage via hong kong and singapour and Brazil is holding the north and south american continent hostage.
see map, this is serious and time is running out.
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The Basel III framework, developed by the Basel Committee on Banking Supervision, includes guidelines for Know Your Customer (KYC) protocols as part of its broader regulatory reforms aimed at enhancing the resilience and stability of the banking sector. While Basel III primarily focuses on capital requirements, stress testing, and liquidity standards, it also emphasizes the importance of robust KYC practices to prevent financial crimes such as money laundering and terrorist financing.
Key Elements of KYC in Basel III
Customer Acceptance Policy: Banks must establish clear policies regarding the types of customers they are willing to accept and the level of risk they are willing to tolerate. This helps ensure that the bank does not engage in business with individuals or entities involved in illegal activities or posing a high risk of money laundering or terrorism financing.
Customer Identification: This involves collecting and verifying the customer's identity information, such as their name, address, date of birth, and identification documents (e.g., passport or driver's license). The purpose is to ensure that the bank knows who their customers are and can establish their true identity.
Ongoing Monitoring: Banks must continuously monitor customer transactions and behavior to ensure that they align with the bank's knowledge of the customer, their business, risk profile, and the source of funds. This helps in identifying any suspicious activities that may indicate financial crimes.
Risk Management: This process includes recognizing the level of KYC and due diligence necessary based on a risk assessment. Banks must allocate resources effectively and implement appropriate measures to prevent financial crimes. For example, a customer who frequently makes large cash deposits and withdrawals may be subject to more intensive monitoring.
Implementation and Compliance
Regulatory Requirements: Basel III standards are minimum requirements that apply to internationally active banks. Members are committed to implementing and applying these standards in their jurisdictions within the time frame established by the Committee.
Risk-Based Approach: The Financial Action Task Force (FATF) recommends a risk-based approach to KYC, allowing firms to balance their compliance obligations in a proportionate and efficient way. Higher-risk customers may be subject to more intensive KYC measures, while lower-risk customers may receive the minimal necessary scrutiny.
Technology and Software: Specialist software and employee training can help banks stay ahead of changes in the KYC compliance landscape. Ongoing monitoring, often referred to as perpetual KYC (pKYC), involves regularly checking customers relative to their risk profile and behavior, which may have changed over time.
Importance of KYC
Effective KYC practices are crucial for protecting financial institutions from costly compliance penalties, criminal liability, and reputational damage. They also safeguard individual customers who may otherwise fall victim to financial crime. By verifying the identity of new customers before onboarding and continuously monitoring them throughout the business relationship, banks can better understand and serve their customers while mitigating the risk of illegal transactions.
Conclusion
The Basel III framework reinforces the importance of KYC protocols in the banking sector, emphasizing the need for comprehensive and effective risk management practices. By adhering to these guidelines, banks can enhance their overall safety and soundness, protect the integrity of the banking system, and contribute to the global effort against financial crimes.