CKYC refers to Central KYC (Know Your Customer), an initiative of the Government of India. The aim of this initiative is to have a structure in place which allows investors to complete their KYC only once before interacting with various entities across the financial sector

Banks are increasing facing incidences of it being used for financial malpractices, money-laundering, and even some cases terrorism financing. To overcome it, Banks were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to appropriate authority. These ‘Know Your Customer’ guidelines have been issued by Central Banks in respective countries to banks and financial institutions.

The KYC module automates following key processes at the banks:

  • Customer Acceptance Policy (Mandatory ID proofs)
  • Customer Identification Procedures (Recording onfield verification results)
  • Monitoring of Transactions (Defining Suspicious Transaction Parameters and Monitoring)
  • Risk Management