AML & KYC: What is the Difference?

People often ask what is the difference between KYC & AML? And they are often used interchangeably, whereas there is a clear difference between the two.

KYC, Know Your Customer, is something that every organisation should do to verify who their clients and employees are before they engage in a business relationship.

KYC, or performing customer due diligence (CDD), should be performed regardless if AML regulations exist.

AML, or Anti-Money Laundering Checks, is a regulatory requirement that applies to banks, building societies and credit unions. They also apply to other firms undertaking certain financial activities (see Schedule 2 of the regulations).

The purpose of the AML rules is to help detect and report suspicious activity including the predicate offences to money laundering and terrorist financing, such as securities fraud and market manipulation.
In both cases, we need to know our customer to establish and verify facts and behaviours on an ongoing basis.

If you would like to learn more, please go to https://www.northrow.com/ follow us on @NorthRowChecks or email info@northrow.com or call +44 (0) 1235 375000.

Видео AML & KYC: What is the Difference? канала NorthRow