Know Your Client
Competency Title:
Know Your Client
Competency Type:
Functional
Competency Description
This competency refers to the ability to perform client identification and profiling to establish the risks of doing financial business with the client. The scope includes obtaining client information, verifying their identity, establishing their risk profile and executing the on-boarding process.
Level 1 - Awareness
Level 1
• Identify the steps in conducting fact-finding and maintaining client information.
• Identify regulatory requirements and standards on customer due diligence.
• Recognise the factors that change client's risk profile.
• Identify procedural and regulatory requirements for client on-boarding.
Level 2 - Knowledge
Level 2
• Monitor and update client's information and transactions continuously.
• Identify the process to verify the information provided by client.
• Update client's risk profile when client's information changes.
• Match regulatory requirements for client on-boarding with internal procedures.
Level 3 - Skill
Level 3
• Conduct fact-finding to obtain sufficient information about client.
• Conduct due diligence to verify client information with relevant authorities.
• Assess client's risk profile based on available information.
• Perform client on-boarding activities in compliance with regulatory requirements.
Level 4 - Mastery
Level 4
• Establish internal procedure to capture client's information while safeguarding confidentiality.
• Conduct enhanced due diligence process for higher-risk clients.
• Adopt, develop and implement an effective risk-based approach to conducting KYC.
• Establish procedures for client on-boarding in accordance with regulatory requirements.
Level 5 - Expert
Level 5
• Assess effectiveness of procedure deployed to capture client's information.
• Review customer due diligence process and practices to ensure compliance with regulations
• Evaluate the effectiveness of current client risk profiling approach.
• Integrate regulatory requirements for client on-boarding with business processes.