At Least Once In Every Two Years For High Risk Customers;
Know your customer is the due diligence that banks must perform to identify their clients and ascertain relevant information pertinent to doing business with them. Kyc is required to be done at least once in two years for high risk customers, once in eight years for medium risk customers and. What are the rules regarding periodical updation of kyc?
A List Of Identified Risks Is Required For This.
Medium risk and high risk customers need to visit the branch and submit fresh identity, kyc and address documents. Customers requiring very high level of monitoring, e.g., those involved in cash intensive business, politically exposed persons (peps) of foreign. This exercise would involve all formalities.
The Kyc Risk Rating Is A Calculation Of Risk.
The rbi directions on kyc clearly mention that the periodicity of kyc updation should be based on the risk profile of the customer. Once in every ten years for low risk customers; Kyc is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers.
Kyc Is Required To Be Done Once In Every Two Years For High Risk Customers, Once In Every Eight Years For Medium Risk Customers And Once In Every Ten Years For Low Risk Customers.
Indiaforensic offers a video learning program on the subject of risk based approach to kyc. This enables monitoring of the transactions on a regular basis and make necessary enquiries clarifying the doubts. Different periodicities have been prescribed for updation of kyc records depending on the risk perception of the bank.
Once In Every Eight Years For Medium Risk Customers;
Bank becomes vulnerable to operational risk in case there is a weakness in the kyc/aml process. However low risk customers are enabled with various modes of updating their kyc subject to some conditions. Customers identified as high risk customers would need to submit fresh set of kyc once in 2 year, while medium risk customers would need to submit fresh set of kyc once in 8 years and low risk customers once in 10 years.