CLM-KYC Operationalization

Do you remember the collapse of Lehman Brothers in 2008? Failure of the investment bank started a chain reaction that caused global financial crisis and eventually the government had to step-in to assist the troubled financial services firm. This single event told us that how important banks and financial services institutions have become in today’s extremely complex yet delicate economic structure.

Banks are one of the highly regulated institutions and they have to comply with the set of rules and guidelines prescribed by a governing regulatory, which is often a government agency. These regulations come in the form in strict requirement to adhere to and procedures to follow.

KYC (Know Your Customer) is one of such requirements, in which banks and other financial institutions have to adhere to certain guidelines for the verification, identification and authentication of their clients before customer onboards and afterwards as well on regular intervals. The KYC process in banks and Financial Institution (FI’s) will be our points of discussion in the subsequent sections. Let’s dive into it.