28.6.3. KYC and AML

Try these first

1. 1.

   What does KYC stand for?

   Hint

   Just think of what financial institutions need to know about customers.

2. 2.

   Name one benefit of KYC.

   Hint

   Consider how fraud prevention relates to verifying identities.

3. 3.

   What does KYC stand for?

   • Keep Your Company
   • Know Your Customer
   • Kind Your Customer

   Hint

   Think about what financial institutions need to establish a relationship with clients.

4. 4.

   True or False: AML only concerns large financial transactions.

   • True
   • False

   Hint

   Consider the term 'money laundering' and what it entails.

5. 5.

   Design a KYC process for a new FinTech start-up. Why would each step be important?

   Hint

   Reflect on traditional banking processes and integrate them with technology.

6. 6.

   Discuss the implications for a financial institution that neglects KYC and AML practices. What could happen in both short and long term?

   Hint

   Consider the financial, reputational, and legal impacts.