123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

An Overview Of Kyc Screening Types

Profile Picture
By Author: Linqs Inc
Total Articles: 59
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Know Your Customer (KYC) screening is a critical process that financial institutions and other regulated entities use to verify the identity of their clients, assess the risks associated with their activities, and comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This screening involves collecting and verifying a customer's identity information, analyzing their financial transactions, and conducting ongoing monitoring to detect any suspicious activity. There are different types of KYC screening that financial institutions can use to verify their clients' identities and mitigate the risks associated with their activities.

KYC Basic Screening
KYC basic screening involves collecting and verifying a customer's basic identity information, such as their name, date of birth, address, and identification documents, such as passport or driver's license. This type of screening is suitable for low-risk clients, such as individual consumers or small businesses.

KYC Enhanced Screening
KYC enhanced screening is a more comprehensive screening process that involves collecting ...
... additional information about a customer, such as their occupation, source of funds, and nature of their business activities. KYC enhanced screening is typically used for high-risk customers, such as politically exposed persons (PEPs), large corporations, and high-net-worth individuals.

Transaction Monitoring
Transaction monitoring involves analyzing a customer's financial transactions to identify any suspicious activity, such as money laundering or terrorist financing. Financial institutions use advanced analytics tools to detect any unusual patterns of behavior and flag any transactions that may require further investigation.

Ongoing Monitoring
Ongoing monitoring involves continuously monitoring a customer's transactions and activities to detect any changes in their risk profile. Financial institutions use this type of screening to identify any suspicious activity that may occur after a customer has been onboarded.

Negative News Screening
Negative news screening involves searching for any negative news or information about a customer or their business activities that may indicate a higher risk of money laundering or terrorist financing. Financial institutions use specialized databases and tools to search for any negative news, such as media reports, regulatory actions, or legal proceedings.

Ultimate Beneficial Owner (UBO) Screening
UBO screening involves identifying and verifying the ultimate beneficial owner of a customer, particularly in cases where the customer is a complex corporate structure or a trust. UBO screening helps financial institutions identify any hidden ownership or control structures that may pose a higher risk of money laundering or terrorist financing.

It is a crucial process that financial institutions and other regulated entities use to identify their customers, assess the risks associated with their activities and comply with AML screening and regulations and CTF regulations. There are different types of this screening that financial institutions can use, depending on the nature of their business and the risks associated with their customers. Financial institutions need to implement robust screening processes to mitigate the risks of financial crime and protect themselves from regulatory penalties and reputational damage.

Customer screening is also another important type of screening. It is the process of verifying and assessing the risk associated with a customer's identity and their financial activities. The process involves collecting and analyzing a customer's personal information, such as their name, date of birth, and address, to confirm their identity and evaluate any potential risks that may be associated with their business or financial transactions. It is an essential aspect of regulatory compliance and is typically conducted by financial institutions and other regulated entities to prevent money laundering, terrorist financing, and other financial crimes.

About The Author:-

The author has extensive experience writing about KYC screening and AML screening. With a deep understanding of the financial industry and regulatory compliance, the author has published numerous articles, providing valuable insights and guidance. The author's expertise has helped organizations across various industries navigate the complex landscape of regulatory compliance and develop effective risk management strategies. https://www.linqs.co/sw/

More About the Author

Linqs software helps you with Anti Money Laundering (AML) and KYC screening of customers or trading partners before entering a deal with them.

Total Views: 240Word Count: 610See All articles From Author

Add Comment

Business Articles

1. Why Bergercpafirst Stands Out Among Cpa Firms In New Jersey, Manhattan, And Nyc
Author: bergerCPAFirst

2. Restoring Functionality: The Importance Of Local Expert Upvc And Aluminium Door And Window Repair
Author: Vikram kumar

3. How Custom Printing & Packaging Helps Mumbai Businesses Build Stronger Brand Identity
Author: Walid Shaikh

4. Role Of Marble Ganesh Murti In Festivals And Rituals
Author: Madhav Arts

5. 2025 Trends: Heavy-duty Paper Bowls Shaping The Dessert Industry
Author: Gujarat Shopee

6. How To Join Shade Cloth Together: Your Easy Guide
Author: DIY Shade Sails

7. Top 7 Benefits Of Asterisk Development For Modern Businesses
Author: Jack Morris

8. Experience The Wellness Benefits Of A Sauna In Kelowna
Author: Duke John

9. Reputable Pintle Bush Distributor In Dubai Uae For Marine Use
Author: Anbu Thalapathy

10. Trustworthy Stern Tube Bearing Manufacturer In Dubai Uae For Marine Sector
Author: Anbu Thalapathy

11. From Pigment To Perfection: Koel Colours In Colour Cosmetics Manufacturing
Author: Kanika shah

12. Top Benefits Of Lithium Batteries For Caravans And Travel Trailers
Author: trailercamper

13. Real-time Competitive Price Tracking : Boost Revenue By 18%
Author: Actowiz Metrics

14. Iso 42001 Vs Iso 27001 Certification
Author: Sqccertification

15. Best Office Cleaning Suppliers In Dubai – Facilico Facilities Management
Author: Facilico

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: