Know Your Customer Specialist (KYCS)

A Know Your Customer (KYC) Specialist course provides comprehensive training on identifying, verifying, and assessing risks associated with clients to prevent financial crimes like money laundering. Key areas include customer due diligence (CDD/EDD), identifying Ultimate Beneficial Owners (UBOs), PEP screening, and regulatory compliance (FATCA/CRS).

Learning Objectives

1. Know Your Customer & Its International Context

• Understand the concept of Know Your Customer (KYC).
• Define KYC and its importance.
• Recognize the relationship between KYC and Anti-Money Laundering (AML).
• Identify when KYC applies.
• Understand the international context of KYC, including the Financial Action Task Force (FATF), Basel Committee on Banking Supervision (BCBS), Wolfsberg Group, European Union, European Data Protection Act (GDPR), and the US Anti-Money Laundering Act (AMLA 2020).

2. Customer Onboarding Requirements

• Learn about the requirements for individual accounts, including customer identification and verification, identifying the real beneficiary, and screening for politically exposed persons (PEPs).
• Understand the KYC requirements for corporate accounts, including ultimate beneficial owners (UBOs) and changes in entity ownership.
• Identify the specific considerations and vulnerabilities related to charities and non-profit organizations (NPOs).

3. Customer Tax Status (FATCA & CRS)

• Understand what FATCA and CRS are.
• Learn about the forms and self-certifications related to FATCA & CRS.
• Identify CRS due diligence for individual and entity accounts.

4. Risk-Based Approach in Customer Due Diligence

• Comprehend the concept of customer risk rating and risk factors.
• Understand the money laundering risk classifications and electronic AML risk rating.
• Learn about risk-scoring models and customer/account overall risk assessment.

5. Account Opening Processes and Management

• Identify account opening procedures, including decentralized and centralized approaches.
• Understand KYC updates and accepting instructions by fax or email.
• Learn about opening non-face-to-face accounts, handling incomplete accounts, dormant accounts, and closure accounts.

6. Online Customer Onboarding and Digital Identity

• Understand the relationship between customer onboarding and digital identity.
• Learn about the challenges, threats, and benefits of digital identity and online onboarding.
• Explore a proposed mechanism for implementing online onboarding.

Chapter 1 — KNOW YOUR CUSTOMER & ITS INTERNATIONAL CONTEXT

• What is Know Your Customer (KYC)
• The importance of KYC and who is required to implement it.
• Relationship between KYC and AML
• The International Context of KYC

Chapter 2 — CUSTOMER ONBOARDING REQUIREMENTS

• Individual Accounts
• Corporates Accounts
• Charities and Non-Profit Organizations (NPOs)

Chapter 3 — CUSTOMER TAX STATUS (FATCA & CRS):

• About FATCA and CRS
• Foreign Account
• Tax Compliance Act (FATCA)
• Common Reporting Standard (CRS)

Chapter 4 — RISK-BASED APPROACH IN CUSTOMER DUE DILIGENCE

• Customer Risk
• Rating Risk Factors
• Factor One: Customer Type
• Factor two: Geographical location
• Factor Three: Product and Services
• Electronic AML Risk
• Rating Risk-Scoring Model

Chapter 5 — ACCOUNT OPENING PROCESSES AND MANAGEMENT

• Account opening procedures
• KYC update
• Online KYC update

Chapter 6 — ONLINE CUSTOMER ONBOARDING AND DIGITAL IDENTITY

• Customer onboarding and digital identity
• Identity verification
• Challenges and threats of digital id and online customer onboarding
• Benefits of digital identity and online onboarding
• a proposed mechanism for implementing online onboarding.