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The Branch manager’s desk…

For customers that are natural persons, the banks must


obtain sufficient identification data to verify the
identity of the customer, his address / location, and
also his recent photograph. For customers that are legal
persons or entities, the bank should:
• Verify the legal status of the legal person or
entity through proper and significant documents
• Verify that any person declaring to act on behalf of
the legal person entity is so authorized and
identify and verify the identity of that person
• To understand the ownership and control structure of
the customer and find out who are the natural
persons who ultimately control the legal person.

The Officer’s pen…

Client-centricity and customer relationship management


(CRM) are seen as key elements in the modern company’s
pursuit of competitive advantage. Consequently, many
companies have spent vast sums acquiring and instituting
CRM tools across their organizations. This is
particularly the case in the financial services industry,
which is at the forefront of these developments.

However, the financial services industry is also facing


other emerging challenges, some of the most significant
of which are those related to the many new regulations
concerning money laundering (AML) and terrorist
financing. This has forced financial services
institutions to pay particular attention to their know-
your-client (KYC) procedures.

“While on the one side you have to do due diligence


before opening the account, on the other side there is a
large group of customers who are being left out because
of the strict rules,”
KYC requirements have always been in place and Banks have
been taking KYC documents in accordance with the
guidelines issued by RBI from time to time. RBI has
revisited the KYC guidelines in the context of the
recommendations made by the Financial Action Task Force
(FATF) on Anti Money Laundering Measures and Combating
Financing of Terrorism and enhanced the KYC Standards in
line with international benchmarks.

Staff verdict:

“We have always co-operated with customers to perform the


required obligations towards KYC and the customers are
also making an effort to help us upto the extent
possible.”

“There are people who are coming with the identification


proofs after we make them understand the need of this
document but there are others who are adamant to not to
perform the required obligatory issues and prefer to
close the bank account with us.”

It’s a two way task and we seek help from customers to


provide them uninterrupted service.

“It is unfortunate that in the Indian financial sector,


the quality of customer service is directly dependent on
who you are and who you know. The common Person has to
reconcile to this brutal fact.”
A bank client