Know Your Client process
Know Your Client (KYC), also known as Know Your Customer, is a process that enables you to verify the identity of new clients and assess the potential risks and suitability of a new customer relationship. KYC is a required compliance process for financial industry businesses. However any business can reduce risk by customizing and using this Know Your Client process.
Meet compliance regulations and reduce business risk with a comprehensive Know Your Client process.
Protect yourself from unnecessary risk with a Know Your Client SOP that you can trust. Make sure every step is done the right way. Track progress and automatically assign roles.
Know Your Client processes enable you to more thoroughly comply with Anti-Money Laundering regulations. Research suggests that $2 to $2.5 trillion dollars are laundered every year. The problem is your business could be at risk whether it knowingly or unknowingly facilitates these illicit activities. To reduce risks, follow a Know Your Client process.
Without knowing your client’s business activities in more detail and make sure you have verified their identity, your business risks severe consequences. Penalties and other legal punishments for minor or more serious involvement in criminal activity could apply. Fraud committed by your customers could lead to involvement in legal proceedings, investigations, and potential damages.
Be sure to start new client relationships with a Know Your Client process. Collect key information about about new clients. Make sure key questions and the answers to them do not get overlooked. Use this Know Your Client process to be certain things get done right and you’ve efficiently met key compliance requirements.
How to get your Know Your Client process into use now:
- Document and Share the Process Use the template above to get started. Tailor the outlined process. Add images, details, roles, assignments, relative due dates, timelines, tasks, forms, and videos to meet your needs. Share your documented process online with business managers or share printed or PDF copies.
- Automate Workflow Processes and Checklists
Typically the KYC process involves employees from various positions. Researchers gather information about clients and verify their identity. Analysts evaluate the risk potential of clients. Account Managers handle onboarding and ongoing monitoring of the account. When you use a reliable process, everyone involved in the process is informed of what needs to be done to make sure the process is done right. Automated workflows and tasks helps everyone move through the entire process with clarity and ease. To start a new workflow from your documented process, simply click Start.
- Integrate with Other Systems
Eliminate the slow speed, effort, and error prone nature of transferring information manually between systems. TeamworkIQ’s integration points let you exchange data and events with the most popular CRM systems and 1000’s of other apps and software systems.
- Achieve Operational Excellence
Save yourself, teams, and your whole business time and money while executing flawlessly. View live processes on dashboards. Analyze the details. Get reports when you want them and notifications if issues arise. Archive everything for compliance and record keeping.
- Avoid Costly Mistakes
Make sure each critical step gets done right and on time. When details and steps during the Know Your Client process get missed, forgotten, done incorrectly, or done late the company’s risk of encountering serious legal or financial consequences increases significantly. Avoid these risks with a strong and reliable Know Your Client process.
Use TeamworkIQ’s Know Your Client process template to ensure that your team can effectively handle the process and minimize your exposure to risk.
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What’s the best way to handle the KYC process?
Here’s some of the best advice for handling the Know Your Client process from business management experts to get you started:
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