What is KYC and AML? The unknowns about KYC and AML

Are you interested in the cryptocurrency market and its related terms? In which KYC and AML and what are the secrets you do not know about KYC and AML. And there are many things you don't know about these two terms. Join me to learn about these terms in the following article!

What is KYC?

KYC is understood as a way of verifying your customers. This phase is used for due diligence to validate clients in AML processes. When a customer wants to register on the exchange to accurately identify the customer, the KYC procedures are performed correctly. This work allows exchanges to assess the value of risk based on suspicious financial activities.

KYC includes 2 specific processes as follows:

Collect personal information through government-issued identification documents for citizens such as National Identity Card or Citizenship Identification.

Verify customers by marking individuals with political exposure and individuals with criminal records.

What is AML?

AML is translated as anti-money laundering is also the name of a complex of legal procedures and regulations aimed at preventing and determining profits from illegal activities. The establishment of this organization is to prevent illegal cryptocurrency transactions. Financial criminals take advantage of the anonymity of cryptocurrencies to commit illegal acts such as tax evasion, trading prohibited goods, etc.

They use the cryptocurrency market to exploit money-laundering technology and wipe out criminals. These acts are facilitated by betting websites, crypto-stealing machines to launder money into cryptocurrency exchanges. So to prevent these acts on a global scale, authorities force exchanges to verify their accounts. Also flag and report suspicious transactions and customers.

Importance of KYC and AML

KYC and AML are the most important factors in online trading platforms especially virtual trading. At the same time, KYC also creates a database of information for law enforcement to use in the investigation when detecting suspicious transactions and objects.

When objects want to transfer a large amount of money into Bitcoin to convert to money, the system will immediately ask for identity verification. When verifying the real identity, the criminal's account is immediately listed on the Blacklist and the transactions behind cannot continue. Thus, it can be seen that KYC and AML play an extremely important role in preventing "dirty money" from being given to "bad people".

How is the KYC process done?

The KYC verification process includes ID card verification, face verification, document verification, and biometric verification. Banks need to comply with KYC regulations and money laundering regulations to minimize fraud. In case of non-compliance, penalties will be imposed in accordance with the law.

Documents required for KYC . process

In order for the KYC verification process to be completed, customers need to follow a certain process. It is the use of a reliable independent source or information. Customers will be required to provide identification and address information, including:

Valid National ID Card or Citizen ID or Passport. Request papers with clear information, not erased, clear photos, real papers.

Permanent residence book, driver's license, payroll, labor contract or temporary residence registration certificate. These documents are required to be provided when customers need to open a credit account or get a loan.

Who needs to comply with KYC requirements

Objects to apply KYC include financial institutions and banks, those who need to comply with KYC requirements include:

People who want to open a securities trading account.

People who want to open a credit card.

People who want to open an online bank account.

People who want to open an account register and buy an insurance plan.

Thus, when opening any account, customers must comply with KYC regulations. For bank accounts including ATM accounts, e-banking accounts, the KYC requirements will be higher than opening other bank accounts.

Epilogue

Above is information about what KYC and AML are and what you don't know about KYC and AML provided by kiemtienusd.net. If you have any questions about KYC and AML, please contact us immediately for timely answers in the shortest time.

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