KYC
Customer CDD/EDD
When financial institutions do business with their customers, they should be careful to identify and verify customers ' identities, to ensure that the financial products or services they provide are not used for money laundering, and to confirm the purpose of transactions and the actual owners of the products or services.
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Customer Due Diligence (CDD)
- It means fulfilling a simplified customer identification obligation for customers or products and services that are judged to have low risks such as money laundering.
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Enhanced Due Diligence (EDD)
- For customers, products, and services that are considered high-risk such as money laundering, this means verifying their identities and verification information with additional information about the customers.
WLF (Watch List Filtering)
a process to compare the customer information to the concerned list to verify if the customer is on any lists before financial transaction. If the customer turns out to be listed, the transaction is declined , or accepted only after the approval of manager.
Watch List Filtering Process
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Internal Information
- Information of Internal Regulations
- STR/CTR Reporting More Than a Certain Number of Times
- Financial Criminal Offense, Wanted Criminals
- Domestic Major Politicians, Capitalists
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External Information
- Person Restricted on Financial Transactions
- Foreign Major Political Exposed Persons
- Terrorists
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KYC (Real Time)
- Transaction Refusal of refused after KYC
- Application of EDD Procedure
Risk Assessment
The overall risk score is calculated by defining the risk assessment factor with the weight value for each element of the each factor. The risk assessment model is applied when a new product or service is introduced and it requires review and updates.
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01.
Define customer, country, product/service, and channel and determine detailed items.
Risk Assessment Factor -
02.
Determine the risk grade according to the degree of risk of the risk factor
Risk Assessment to Each Area -
03.
Score the risk grade, finalize the model, and produce the overall risk score
Design the Risk Assessment Model -
04.
Use it when a new product or service is introduced. Regular update is required.
Risk Assessment and Maintenance
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01.
Risk Assessment Factor
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02.
Risk Grade
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03.
Match the Risk Element for the TRX
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04.
Produce Risk Scoring Grade