New money laundering rules?

Sandtree

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Ballard

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

cricidmuslibale

Ballard said:

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

General_Grant

cricidmuslibale said:

Ballard said:

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

Know Your Client (or Know Your Customer) - try Wiki.

Thrugelmir

cricidmuslibale said:

Ballard said:

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

Know Your Customer

Verify the identity and suitability of customer in maintaining a business relationship. With the aim of reducing the risk of identify theft, money laundering, financial fraud, and the financing of criminal organisations. 

cricidmuslibale

General_Grant said:

cricidmuslibale said:

Ballard said:

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

Know Your Client (or Know Your Customer) - try Wiki.

Thrugelmir said:

cricidmuslibale said:

Ballard said:

Sandtree said:

Ballard said:

That's exactly right. It's Know Your Customer. The whole idea is that they know what to expect from you. If, for example, you started paying in £2k cash a week they should start investigating whereas a pub (in normal times) would be able to pay in significant amounts of cash every day without causing a fuss. That said, they would still monitor the pub for divergencies for their normal.

Anti-Money Laundering is the overarching umbrella and KYC is one component of it but that is normally focused on identification verification of your customer. Validating transactions are or arent money laundering is independent to KYC though what triggers checks and what doesnt may well be driven by information stored as part of KYC (as you say, large cash deposits are expected in some industries and suspect in others)

Agreed but there's a misapprehension that KYC is a one-time event whereas it's an ongoing process. AML and KYC are both integral to staying within the law and KYC must regularly be completed in addition to being a tool to check transactions. 

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

Know Your Customer

Verify the identity and suitability of customer in maintaining a business relationship. With the aim of reducing the risk of identify theft, money laundering, financial fraud, and the financing of criminal organisations. 

Thank you very much General_Grant and Thank you very much Thrugelmir. Thrugelmir, thank you esp. for concisely summing up the Know Your Customer process and why, sadly, it is increasingly important these days with so much identity theft, internet and phone based fraud, scams etc. around! 

cricidmuslibale

P.S. When I was little my mother used to say 'Please do try to KYC' but in that case it meant Keep Yourself Clean!

Chino

Thrugelmir said:

With the aim of reducing the risk of identify theft, money laundering, financial fraud, and the financing of criminal organisations.

In other words, annoy your normal customers because you don't care about annoying them while allowing Russian oligarchs and the like to buy up large chunks of central London while paying lip service to asking how they came by their funds.

Thrugelmir

Chino said:

Thrugelmir said:

With the aim of reducing the risk of identify theft, money laundering, financial fraud, and the financing of criminal organisations.

In other words, annoy your normal customers because you don't care about annoying them while allowing Russian oligarchs and the like to buy up large chunks of central London while paying lip service to asking how they came by their funds.

You must lead a very sheltered life. 

born_again

cricidmuslibale said:

Sorry not to know (or I may have temporarily forgotten) this but please may I ask, what does KYC stand for and what does this process entail?

It is as much about having the most up to date details for customers, as anything else.
Say you list yourself as a company director & have a income of £10K a month & a large O/D. Then you stop getting that wage each month. That should trigger a KYC update required. As clearly there has been a change in circumstances. 
It's amazing the number of customers that never update banks with change of details, such as address or phone no, or even worse they have changed name due to getting married/divorced.