In order to remain compliant with current Know Your Customer (KYC) regulations, banks' clients are asked to provide specific information and documents at the point of on-boarding, account opening, transacting and periodically at various stages of their relationship. These must be provided to the satisfaction of the bank to start (or continue) a banking relationship.
Compliance information needed for an individual's identity and address verification varies. They range from, for example, attested copies of passports, identity cards, driving licences or utility bills not more than 2 months old. Further security questions may be asked during transactions to verify a client's identity. Compliance information requests for business detail verification also vary and in addition to the above may also include certified copies of a business's Certificate of Incorporation, Memorandum and Articles of Association, latest annual returns, organisational and shareholder structures to verify the ultimate beneficial owners / controllers of a business bank account.
Banks may also request the above and other information from clients in order to update records periodically or where there are changes to account holder signatories, mandate holders, beneficial holders, etc. In order for banks to remain compliant, they must obtain this updated information from clients and be satisfied it fulfils regulatory obligations. This reduces any delays in opening or operating a bank account or executing a transaction. Providing compliance, KYC and due diligence information protects your identity and funds. It is necessary to remain compliant with regulations, and desirable to reduce fraud and money laundering activities which have a negative impact across the financial sector.