KyC Account: A Guide to Security, Verification, and Ongoing Monitoring

Having a KyC account is a crucial step in protecting your online identity and financial security. This account requires identity verification, which involves providing personal documents such as a government-issued ID and proof of address.

To verify your identity, you'll need to submit a clear photo of your ID and a utility bill or bank statement showing your address. This process helps prevent identity theft and ensures that your account is secure.

Once your account is verified, you'll be able to monitor your account activity in real-time, receiving alerts for any suspicious transactions. This ongoing monitoring helps you stay on top of your finances and detect any potential security breaches.

After completing the Video KYC process, you'll receive your account details via SMS on your registered mobile number and email on your registered email address.

You'll also get a payment link from the bank to fund your account with an initial INR 2000, which will be credited within 48 hours of successful payment.

If you've funded your account online, your ATM and cheque book will be issued immediately and delivered within 15 days to your correspondence address.

You can download and activate the bank's Cent m Passbook App to have complete account and transaction updates on your fingertips.

If needed, you can collect a physical passbook from your home branch.

A Customer Identification Program (CIP) is a must-have for financial institutions to prevent identity theft and money laundering. It's the law in the U.S. and many other countries.

The CIP mandates that any individual conducting financial transactions needs to have their identity verified. This is to limit money laundering, terrorism funding, corruption, and other illegal activities. In fact, over 190 jurisdictions worldwide have committed to recommendations from the Financial Action Task Force (FATF) to fight money laundering.

The minimum requirements to open an individual financial account are clearly delimited in the CIP: name, date of birth, address, and identification number. These pieces of information must be verified "within a reasonable time" by the institution.

Here are the key pieces of identifying information required for a CIP:

The exact policies depend on the risk-based approach of the institution and may consider factors such as the types of accounts offered, the bank's methods of opening accounts, and the types of identifying information available.

Layered identity proofing can enhance security and trust by verifying a customer's identity through multiple methods, such as documents, non-documentary methods, and a combination of both. This approach helps to minimize the risk of identity theft and ensures that customers are who they claim to be.

The Customer Identification Program (CIP) mandates that financial institutions verify a customer's identity before opening an account. This includes collecting the customer's name, date of birth, address, and identification number, and verifying their identity within a reasonable time frame.

A robust CIP helps deliver regulatory compliance and prevent fraudulent activities. To achieve this, financial institutions must conduct a risk assessment, both at the institutional level and at the level of procedures for each account. This involves determining the exact level of risk and policy for that risk level.

Here are the minimum requirements to open an individual financial account, as per the CIP:

Financial institutions must also maintain current and accurate customer information and continue to monitor accounts for suspicious and illegal activities. When detected, they are required to promptly report their findings.

In addition to the CIP, financial institutions must also comply with Anti-Money Laundering (AML) laws. This includes understanding the type and purpose of the customer relationship and developing a customer risk profile, used as a baseline for detecting suspicious customer activities.

To open a KYC account, you'll need to provide certain documents, which may vary depending on the organization and industry.

For a video KYC session, you'll need to have your mobile linked Aadhaar Number, PAN Card, a plain paper, and a pen.

KYC requirements for banking involve verifying the identity of customers, as banks deal with significant amounts of accounts, money, and transactions.

The process of KYC verification involves checking for various red flags, including creating separate accounts under different names, initiating transactions from non-trusted IP addresses, and providing forged or falsified identity documents.

A robust Customer Identification Program (CIP) helps deliver regulatory compliance and prevent fraudulent activities.

To verify your identity, you may need to present a government-issued ID, such as a passport or driver's license, and a proof of address, like a utility bill or lease agreement.

The most basic document requirements for KYC are a government-issued ID with a photo and a proof of address.

Here are some common documents required for KYC verification:

Verification and Monitoring is a crucial part of the KYC account process. It ensures that the customer's identity is verified and their transactions are monitored to prevent any suspicious activity.

The customer's financial transactions are monitored on an ongoing basis, with oversight of financial transactions and accounts based on thresholds developed as part of their risk profile. This includes monitoring for spikes in activities, out of area or unusual cross-border activities, inclusion of people on sanction lists, and adverse media mentions.

The level of transaction monitoring relies on a risk-based assessment, and periodical reviews of the account and the associated risk are also considered best practices. This includes checking if the account record is up-to-date, if the type and amount of transactions match the stated purpose of the account, and if the risk-level is appropriate for the type and amount of transactions.

A robust Customer Identification Program (CIP) is also essential for delivering regulatory compliance and preventing fraudulent activities. The CIP mandates that any individual conducting financial transactions needs to have their identity verified, and the minimum requirements to open an individual financial account are clearly delimited in the CIP, including name, date of birth, address, and identification number.

Here is a summary of the verification and monitoring process:

Ongoing monitoring is a crucial part of the verification and monitoring process. It's not enough to just check your customer once, you need to have a program to monitor your customer on an ongoing basis.

This ongoing monitoring function includes oversight of financial transactions and accounts based on thresholds developed as part of a customer's risk profile. Some other factors to monitor may include spikes in activities, out of area or unusual cross-border activities, inclusion of people on sanction lists, and adverse media mentions.

You may need to file a Suspicious Activity Report (SAR) if the account activity is deemed unusual. Periodical reviews of the account and the associated risk are also considered best practices.

To ensure your ongoing monitoring is effective, ask yourself these questions during periodical reviews:

The level of transaction monitoring relies on a risk-based assessment, so it's essential to regularly review and adjust your monitoring strategy accordingly.

Financial Condition Verification is a crucial step in the verification and monitoring process. It's where you verify the assets and liabilities claimed by a customer or client.

This step is essential to reduce the risk of misrepresentation, as mentioned in Example 8: "Step 4: Verification of financial condition". You can verify the assets and liabilities claimed by contacting the issuer, using documents, and even conducting physical checks.

The CIP (Customer Identification Program) requires that financial firms obtain four pieces of identifying information about a client, including name, date of birth, address, and identification number, as stated in Example 7: "Customer Identification Program".

To verify the financial condition, you'll need to check the customer's claims against their actual financial situation. This can be done through various methods, including reviewing financial statements, checking credit reports, and even conducting on-site visits.

Here are some common methods used for financial condition verification:

The goal of financial condition verification is to ensure that the customer or client is who they claim to be and that their financial situation matches their claims. This helps to prevent fraudulent activities and ensures regulatory compliance.

You can complete the Video KYC session immediately after filling the digital application between 8 AM to 8 PM on bank working days.

If you experience any connectivity issues, don't worry, you can retry the Video KYC session. You won't need to fill the digital application again within 72 hours of the initial attempt.

You can complete the Video KYC session at any time that suits you between 8am to 8pm on bank working days, or schedule it for later if you're not available immediately.

You can receive your account details via SMS on your registered mobile number and by an email on your registered email address after completing the Video KYC process.

The account details will be shared with you through these channels, so make sure your contact information is up to date.

You'll also receive a payment link from the bank to fund your CBI account with an initial amount of INR 2000, which will be credited within 48 hours of successful payment.

This payment link will be sent to you via email or SMS, and you can use it to fund your account at your convenience.

If you've completed the initial funding through the online link, your ATM and cheque book will be issued immediately and delivered to your correspondence address within 15 days.

If your query is not resolved, you can contact your bank's customer care for assistance. The toll-free number is 1800 22 1911.

You can also reach out to the bank's email support team at [email protected].