Know Your Customer
As an obligation of operating in the remittance industry, GME and its staff should perform a ‘due-diligence’ on every customer preceding any transaction. All activities of customers be it regular or new, must be monitored persistently in order to prohibit illegal usage of GME services.
We are bonded to establish a strong business relationship with principal companies, both domestic and international to make possible distribution or collection of funds on behalf of their customers for remittance transactions. Misusing these networks by these principal agents (international and domestic) can create risks, such as compliance risk, reputational risk and operational risk, which in future, could create dire problems and consequently face strict penalties issued by NRB.
We, thus apply a Zero Tolerance Policy which works to make a comfortable space for the implementation of an appropriate system to monitor the transactions executed by the customers and to prevent the brand from potential risks.
Company’s Know Your Customer (KYC) / Know Your Agent (KYA) Manual has been mapped accordingly, so as to ratify operational procedures with an aim to steadily enforce GME’s policy towards hindrance of money laundering (Anti Money Laundering Policy) practices, across all businesses/branches within GME’s current geographical span. As it will also empower GME to comply with statutory guidelines on Know Your Customer and will give way to further preventions needed for money laundering and analogous activities.
We obtain detailed information of all our representative, agents or customers as appropriate for maintaining our database as well to know the person/entities with whom we are going to maintain a sustainable business relationship. Transactions are accepted and agreements materialized only if the information furnished and/or documents submitted are adjudged to be sufficient and to the satisfaction of GME as per the company’s AML Policy and KYC Manual.
KYC is an ongoing process. It should be done before accepting transaction or entering into the relationship/agreement or when the transaction exceeds the threshold limit or any suspicious transactions are carried out or as and when our officials believe is necessary on compliance grounds.
Elements of KYC Policy
|Element||How it works|
|Customer Acceptance Policy (CAP)||1. Clarity with respect to explicit criteria on which customers are genuinely to be accepted.|
2. Diligent checks on background & validity of photographic identities.
|Customer Identification Procedures (CIP)||1. Clearly outlined identification measures.|
2. To be executed in every process (Customer registration, transacting money, settling doubts, etc.)
3. For bank’s satisfaction, verifying customer’s identity and purpose of remittance.
|Monitoring of Transactions (MOT)||1. Continuous monitoring of information database.|
2. Extraneous scrutiny for high-risk/suspicious transactions.
- Registration of customer
- Due diligence of customer through OFAC and Contradiction list
- Examine customer’s legitimacy
- Check source of income & purpose of remittance
- Relationship with respective beneficiary & origin of country
- Monitoring of multliple transactions
- Checking daily limit of remitter/beneficiary
- Follow the standard and regulation prescribed by FCA/AMLR