Essentials of ‘Know Your Customer’ Regulations
Anti-Money Laundering (ATB), has established the ‘Know Your Customer‘ policy as an essential process in stopping unintentional involvement with illegal activities. These procedures are in order to assist ATB with assessing money-laundering risks that are associated with each potential new client and already established clients.
All ATB associates are required to ascertain and take, within reason, measures in finding out the identities of these potential new clients and already established clients. If ATB is satisfied with the verification of a client’s identity, then and only then can an account be opened. Plus, there are new procedures that were developed by the ATB that will ascertain whether a client is operating on behalf of a third party for both new accounts and existing accounts. Also, all transactions of countries identified by the United Nations Resolutions and the Canadian government and their individuals or entities, are not recognized by the ATB.
ATB’s policies ensures that only ATB accepts clients whose activities can reasonably be established to be legitimate. They require all ATB associates be trained to recognize and respond to any suspicious and potential money-laundering activities. Depending on the position held by an ATB associate, the training may be basic or extensive. Reporting such transactions in compliance with the applicable regulations and ensures the ATB retains appropriate records of client information through due diligence measures and are retained for 5 years.
Any company with international dealings or financial institution must implement ATB’s polices. ATB will make sure the following measures have been established: A Chief of Compliance Office needs to be appointed to provide independent oversight of compliance by ATB and its subsidiaries. An officer needs to be designated to be responsible for corporate wide measures with which to combat terrorist financing and money laundering and will report directly to senior management.
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