{"id":16912,"date":"2020-12-30T13:32:11","date_gmt":"2020-12-30T13:32:11","guid":{"rendered":"http:\/\/www.cibjo.org\/?page_id=16912"},"modified":"2023-03-06T10:36:14","modified_gmt":"2023-03-06T10:36:14","slug":"rsg-step-3","status":"publish","type":"page","link":"https:\/\/cibjo.org\/rstoolkit\/rsg-step-3\/","title":{"rendered":"Responsible Sourcing Guidance: Know Your Counterparty (KYC) &#038; AML"},"content":{"rendered":"<!-- Added by Post\/Page specific custom CSS plugin, thank you for using! -->\n<style>.fusion-header-v2 .fusion-secondary-header {\r\n    display: none;\r\n}<\/style>\n<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><a class=\"maxbutton-1 maxbutton maxbutton-module-1\" title=\"ESTABLISH AND IMPLEMENT A RESPONSIBLE SOURCING POLICY\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-1\/\"><span class='mb-text'>MODULE 1<\/span><\/a>     <a class=\"maxbutton-2 maxbutton maxbutton-module-2\" title=\"SUPPLY CHAIN DUE DILIGENCE\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-2\/\"><span class='mb-text'>MODULE 2<\/span><\/a>     <a class=\"maxbutton-12 maxbutton maxbutton-module-3-over\" title=\"KNOW YOUR COUNTERPARTY (KYC) &amp; ANTI-MONEY LAUNDERING (AML)\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-3\/\"><span class='mb-text'>MODULE 3<\/span><\/a>     <a class=\"maxbutton-4 maxbutton maxbutton-module-4\" title=\"KNOW YOUR COUNTERPARTY (KYC) &amp; BRIBERY &amp; FACILITATION PAYMENTS\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-4\/\"><span class='mb-text'>MODULE 4<\/span><\/a>     <a class=\"maxbutton-5 maxbutton maxbutton-module-5\" title=\"RISK MANAGEMENT FOR CONFLICT FREE SOURCING\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-5\/\"><span class='mb-text'>MODULE 5<\/span><\/a>     <a class=\"maxbutton-6 maxbutton maxbutton-module-6\" title=\"HUMAN RIGHTS\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-6\/\"><span class='mb-text'>MODULE 6<\/span><\/a>     <a class=\"maxbutton-7 maxbutton maxbutton-module-7\" title=\"PRODUCT INTEGRITY\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-7\/\"><span class='mb-text'>MODULE 7<\/span><\/a>     <a class=\"maxbutton-8 maxbutton maxbutton-module-8\" title=\"EARLY WARNINGS, GRIEVANCES AND WHISTLE-BLOWING\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-8\/\"><span class='mb-text'>MODULE 8<\/span><\/a>     <a class=\"maxbutton-9 maxbutton maxbutton-module-9\" title=\"RESPONSIBLE SOURCING CERTIFICATION\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/rsg-step-9\/\"><span class='mb-text'>MODULE 9<\/span><\/a><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><h3 style=\"text-align: center;\"><strong>KNOW YOUR COUNTERPARTY (KYC)<br \/>\n&amp; ANTI-MONEY LAUNDERING (AML)<\/strong><\/h3>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-2 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-2\"><h4 style=\"text-align: left;\"><strong>Introduction to Know Your Counterparty (KYC) &amp; Anti-Money Laundering<\/strong><\/h4>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-3\"><p>To help prevent, mitigate, and manage risks that undermine responsible sourcing, companies should collect, verify and archive information on their customers, suppliers, contractors and other third parties with they conduct business regularly. These measures, called Know Your Customer\/Counterparty (KYC), are\u00a0 considered a first step for conducting due diligence.<\/p>\n<p>Members of the jewellery and gemstone industries should apply KYC to their supply chains, establishing wherever possible the identity of all organisations with which they deal, having a clear understanding of their business relationships, and having a reasonable ability to identify and react to transaction patterns appearing out of the ordinary or suspicious.<\/p>\n<p>A key objective\u00a0 of KYC is for the company to demonstrate that it has carried out checks on its counterparties, even if to rule out their association with any money laundering or illicit activities. The expectation is that reasonable effort should be taken to complete these checks, commensurate with the size and nature of the business.<\/p>\n<p><strong>Money laundering<\/strong> is the illegal process of concealing the origins of money that is generated by criminal activity. \u201cDirty\u201d money is \u201claundered\u201d by passing it through a complex sequence of bank transfers or commercial transactions in order to hide its origins. The laundering process aims to make \u201cdirty money,&#8221; generated by criminal activities, look \u201cclean,\u201d as if it comes from a legitimate source. Gold, silver, diamonds and coloured gemstones have at different times all been associated with money laundering.<\/p>\n<p>Anti-money laundering (AML) procedures, which include KYC, help mitigate the incidence of money laundering in the supply chain.<\/p>\n<p>Even if a business is small, but is involved in business relationships and trading of material that could be perceived as having links with money laundering or the funding of terrorism (by virtue of its country of origin, for example), then a greater effort should be AML due diligence. If a counterparty is considered to be a &#8220;high risk,&#8221; additional information should be collected about the counterparty to provide a deeper understanding of its activity, in order to mitigate associated risks.<\/p>\n<p>These KYC principles should also apply to existing or \u201cgrandfathered\u201d stocks of precious metals or gem materials, which may otherwise not be included in due diligence of current active supply chains.<\/p>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><div class=\"fusion-separator-border sep-shadow\" style=\"background:radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-webkit-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-moz-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-o-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);\"><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-6 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-3 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-7 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-4\"><h4 style=\"text-align: left;\"><strong>KYC\u00a0 Policy Document<\/strong><\/h4>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-8 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-5\"><p>It is advisable that each business has a written KYC policy. This need not be long or complicated, but should state the clear intent to apply KYC principles on all customers, suppliers, contractors and other third parties with which the business has a formal relationship.<\/p>\n<p>The policy statement does not have to be stand alone, but rather can form part of a broader set of policies.<\/p>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><div class=\"fusion-separator-border sep-shadow\" style=\"background:radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-webkit-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-moz-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-o-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);\"><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-9 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-alignright\"><style type=\"text\/css\">.fusion-button.button-1 .fusion-button-text, .fusion-button.button-1 i {color:#105378;}.fusion-button.button-1 .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-1:hover .fusion-button-text, .fusion-button.button-1:hover i,.fusion-button.button-1:focus .fusion-button-text, .fusion-button.button-1:focus i,.fusion-button.button-1:active .fusion-button-text, .fusion-button.button-1:active{color:#105378;}.fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:active .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-1:hover, .fusion-button.button-1:focus, .fusion-button.button-1:active{border-color:#105378;}.fusion-button.button-1 {border-color:#105378;border-radius:25px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.fusion-button.button-1{background: rgba(219,135,187,0.75);}.fusion-button.button-1:hover,.button-1:focus,.fusion-button.button-1:active{background: rgba(229,96,136,0.33);\n\t\t\t\t\t\t\tbackground-image: -webkit-gradient( linear, left bottom, left top, from( #90c9e8 ), to( rgba(229,96,136,0.33) ) );\n\t\t\t\t\t\t\tbackground-image: -webkit-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:   -moz-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:     -o-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image: linear-gradient( to top, #90c9e8, rgba(229,96,136,0.33) );}<\/style><a class=\"fusion-button button-3d fusion-button-default-size button-custom button-1 fusion-button-default-span \" target=\"_blank\" rel=\"noopener noreferrer\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/wp-content\/uploads\/2021\/01\/Sample-AML-and-KYC-Policy10072020.docx\"><i class=\"fa-arrow-alt-circle-down fas button-icon-left\" aria-hidden=\"true\"><\/i><span class=\"fusion-button-text\">DOWNLOAD SAMPLE KYC AND AML POLICY TEMPLATE<\/span><\/a><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-4 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-10 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-6\"><h4 style=\"text-align: left;\"><strong>KYC Procedure Document<\/strong><\/h4>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-11 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-7\"><p>It also is advisable that each business has a a documented KYC procedure.<\/p>\n<p><em>Examples of KYC procedures may include:<\/em><\/p>\n<ol>\n<li>Collection and analysis of basic identity information<\/li>\n<li>Name matching against lists of known parties (such as company registers)<\/li>\n<li>Details of the member\u2019s policies and procedures (especially relating to identification of sources of scrap\/recycled supply)<\/li>\n<li>Determination of the member&#8217;s risk, especially in terms of propensity to supply precious metals and gem materials from an area of conflict and the trade of these products on a cash transaction basis<\/li>\n<li>An expectation of a customer&#8217;s transactional behaviour<\/li>\n<li>Monitoring of a customer&#8217;s transactions against their expected behaviour and recorded profile<\/li>\n<li>Documentation relating to the application of KYC is recommended for all sources of recycled or \u201cscrap\u201d materials.<\/li>\n<\/ol>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><div class=\"fusion-separator-border sep-shadow\" style=\"background:radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-webkit-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-moz-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-o-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);\"><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-12 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-alignright\"><style type=\"text\/css\">.fusion-button.button-2 .fusion-button-text, .fusion-button.button-2 i {color:#105378;}.fusion-button.button-2 .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-2:hover .fusion-button-text, .fusion-button.button-2:hover i,.fusion-button.button-2:focus .fusion-button-text, .fusion-button.button-2:focus i,.fusion-button.button-2:active .fusion-button-text, .fusion-button.button-2:active{color:#105378;}.fusion-button.button-2:hover .fusion-button-icon-divider, .fusion-button.button-2:hover .fusion-button-icon-divider, .fusion-button.button-2:active .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-2:hover, .fusion-button.button-2:focus, .fusion-button.button-2:active{border-color:#105378;}.fusion-button.button-2 {border-color:#105378;border-radius:25px;}.fusion-button.button-2.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.button-2.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.fusion-button.button-2{background: rgba(219,135,187,0.75);}.fusion-button.button-2:hover,.button-2:focus,.fusion-button.button-2:active{background: rgba(229,96,136,0.33);\n\t\t\t\t\t\t\tbackground-image: -webkit-gradient( linear, left bottom, left top, from( #90c9e8 ), to( rgba(229,96,136,0.33) ) );\n\t\t\t\t\t\t\tbackground-image: -webkit-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:   -moz-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:     -o-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image: linear-gradient( to top, #90c9e8, rgba(229,96,136,0.33) );}<\/style><a class=\"fusion-button button-3d fusion-button-default-size button-custom button-2 fusion-button-default-span \" target=\"_blank\" rel=\"noopener noreferrer\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/wp-content\/uploads\/2021\/01\/Sample-AML-and-KYC-Procedure-10072020.docx\"><i class=\"fa-arrow-alt-circle-down fas button-icon-left\" aria-hidden=\"true\"><\/i><span class=\"fusion-button-text\">DOWNLOAD SAMPLE KYC AND AML PROCEDURES TEMPLATE<\/span><\/a><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-5 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-13 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-8\"><h4 style=\"text-align: left;\"><strong>Implementing a KYC Procedure<\/strong><\/h4>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-14 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-9\"><p>At a minimum, when implementing a KYC procedure, one should:<\/p>\n<ul>\n<li>Establish the identity of the organisations with which the business deals<\/li>\n<li>Provide a clear understanding of the business relationship<\/li>\n<li>Confirm beneficial owners, meaning, the person(s) who directly or indirectly ultimately owns or controls the corporate entity<\/li>\n<li>Confirm that beneficial owners are not featured in lists of known criminals issued by the government.<\/li>\n<\/ul>\n<p>The information gathered from these exercises should be documented and stored in a place that can be easily accessed by responsible staff and senior managers.<\/p>\n<p>To collect information on counterparties in a structured format, the business can use a form or questionnaire, which can be filled out by the counterparty or internally by the business itself. In all cases, the counterparty should be given the opportunity to verify the information and to affirm its accuracy.<\/p>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><div class=\"fusion-separator-border sep-shadow\" style=\"background:radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-webkit-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-moz-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-o-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);\"><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-15 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-alignright\"><style type=\"text\/css\">.fusion-button.button-3 .fusion-button-text, .fusion-button.button-3 i {color:#105378;}.fusion-button.button-3 .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-3:hover .fusion-button-text, .fusion-button.button-3:hover i,.fusion-button.button-3:focus .fusion-button-text, .fusion-button.button-3:focus i,.fusion-button.button-3:active .fusion-button-text, .fusion-button.button-3:active{color:#105378;}.fusion-button.button-3:hover .fusion-button-icon-divider, .fusion-button.button-3:hover .fusion-button-icon-divider, .fusion-button.button-3:active .fusion-button-icon-divider{border-color:#105378;}.fusion-button.button-3:hover, .fusion-button.button-3:focus, .fusion-button.button-3:active{border-color:#105378;}.fusion-button.button-3 {border-color:#105378;border-radius:25px;}.fusion-button.button-3.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.button-3.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 4px 0px #105378,1px 6px 6px 3px rgba(0,0,0,0.3);}.fusion-button.button-3{background: rgba(219,135,187,0.75);}.fusion-button.button-3:hover,.button-3:focus,.fusion-button.button-3:active{background: rgba(229,96,136,0.33);\n\t\t\t\t\t\t\tbackground-image: -webkit-gradient( linear, left bottom, left top, from( #90c9e8 ), to( rgba(229,96,136,0.33) ) );\n\t\t\t\t\t\t\tbackground-image: -webkit-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:   -moz-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image:     -o-linear-gradient( bottom, #90c9e8, rgba(229,96,136,0.33) );\n\t\t\t\t\t\t\tbackground-image: linear-gradient( to top, #90c9e8, rgba(229,96,136,0.33) );}<\/style><a class=\"fusion-button button-3d fusion-button-default-size button-custom button-3 fusion-button-default-span \" target=\"_blank\" rel=\"noopener noreferrer\" href=\"http:\/\/www.cibjo.org\/rstoolkit\/wp-content\/uploads\/2021\/01\/Sample-KYC-Form.docx\"><i class=\"fa-arrow-alt-circle-down fas button-icon-left\" aria-hidden=\"true\"><\/i><span class=\"fusion-button-text\">DOWNLOAD A SAMPLE KYC QUESTIONNAIRE<\/span><\/a><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-6 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-7 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: #ffffff;background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-16 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-first\" style=\"width:16.8%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-10\"><h4 style=\"text-align: left;\"><strong>Ongoing KYC Monitoring<\/strong><\/h4>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-17 fusion_builder_column_3_5 3_5 fusion-three-fifth\" style=\"width:58.4%; margin-right: 4%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-11\"><p>Over the course of the business relationship, businesses should monitor transactions, in order to identify patterns that might be appearing out of the ordinary or suspicious. To do so, businesses should maintain records of all cash or cash-like transactions, with a value above the defined financial threshold under applicable law. Where required, they should report these to the relevant designated authority.<\/p>\n<p>Ongoing monitoring should be also based on a counterparty\u2019s risk profile. More frequent and stringent attention should be paid to counterparties based on:<\/p>\n<ol>\n<li>The activities that the counterparty is or has been involved with.<\/li>\n<li>The location where the counterparty carries out the activities.<\/li>\n<li>The expected volume of transactions and payment methods.<\/li>\n<li>The counterparty\u2019s customers and business relationships.<\/li>\n<li>The counterparty\u2019s anti\u2013money laundering policies and procedures.<\/li>\n<li>Any negative information or allegations about your counterparty in the media.<\/li>\n<\/ol>\n<\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><div class=\"fusion-separator-border sep-shadow\" style=\"background:radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-webkit-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-moz-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);background:-o-radial-gradient(ellipse at 50% -50% , #e0dede 0px, rgba(255, 255, 255, 0) 80%) repeat scroll 0 0 rgba(0, 0, 0, 0);\"><\/div><\/div><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-18 fusion_builder_column_1_5 1_5 fusion-one-fifth fusion-column-last\" style=\"width:16.8%;margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-7 { overflow:visible; }<\/style><\/div><\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/pages\/16912"}],"collection":[{"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/comments?post=16912"}],"version-history":[{"count":1,"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/pages\/16912\/revisions"}],"predecessor-version":[{"id":17833,"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/pages\/16912\/revisions\/17833"}],"wp:attachment":[{"href":"https:\/\/cibjo.org\/rstoolkit\/wp-json\/wp\/v2\/media?parent=16912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}