Account Opening Forms by akg31466

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									        AUDIT POLICIES/PROCEDURE FOR KNOW-YOUR-CUSTOMERS, KYC

1)      Introduction

         Given the current problems of financial crimes on hand and the world-wide attention
         it has attracted, series of circulars and guidelines to banks and financial institutions
         have issued on the procedures for verifying the identify of customers. The guidelines
         known as Know-Your-Customer Guidelines (KYC) explains the formal steps
         financial institutions are required to follow in the verification of their customers’
         identity.



2)      Objectives

        2.1      To give clear policy directives to account officers on the procedure for
                 verifying the identity of customers as required by the various legislations on
                 money laundering and financial crimes in the country.

        2.2      To ensure that the company complies fully with the policy on Know-Your-
                 Customer

        2.3      To provide the company with a holistic framework for managing relationship
                 with customers not only to satisfy the requirements of the regulatory
                 authorities but also to deepen business relationship with the company’s
                 customers.

3)      Policy Statements

        3.1      As a good corporate citizen, XYZ shall comply with all relevant legislations
                 on money laundering and financial crimes and will seek through this policy to
                 ensure that all reasonable steps are taken to verify the identity of all its
                 customers.

        3.2      XYZ will not permit any payments to be made from any account with
                 incomplete account opening documents. If the customer decides to
                 discontinue with the transaction on account of inability to produce the
                 required documentation, the transaction will be reported to the relevant
                 authorities as suspicious transaction. Funds deposited can only be returned
                 after one week of the report to the relevant authorities.

        3.3      XYZ will, from the onset of any relationship, explain the account-opening
                 requirements to all its customers together with the need by the customer to
                 inform XYZ whenever there are changes to the information in the account-
                 opening forms.

        3.4      There shall be a visit to the residential/contact addresses of all new customers
                 within two weeks of opening the accounts. The purpose of the visit is to
                 verify that the customer lives or stays at the contact addresses. This physical
                 verification shall be in addition to the utility bills or other proofs of addresses
                 already obtained from the customer. The results of such visits shall be
                 documented and filed as part of the account opening documents

        3.5      There shall be a minimum of one visit to the residential/contact addresses of
                 all active customers at least once a year. The purpose of such visit is to

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               ensure that the customers’ addresses are still current. The result of such visits
               shall be clearly documented and filed as part of the account opening
               documents

        3.6    Where contact/residential addresses have changed without any information to
               this effect by the customer, payment out of the accounts shall be suspended
               pending the verification of the current addresses of the customer.

        3.7    There shall be a review of all customer accounts every six months. The
               purpose of the review is to:
                     Review the accounts for the existence of any suspicious transactions;
                     Check if the movements in the accounts are consistent with the
                      declared purpose of opening the accounts;
                     Check that all the information in the account opening forms are still
                      current and relevant for active accounts.
                     Identify any new developments that may cast doubt as to the fitness
                      of the customer to maintain an account with XYZ.

               The results of this review shall be stated in writing and filed as part of the
               account opening forms.

        3.8    There shall be a personal visit by the head of every business unit in XYZ to
               the residential/contact addresses of all individual customers with balances in
               excess of $X million. For those with balances in excess of $Ymillion, a
               personal visit to the customer’s residential/contact address by the CEO is
               required. These visits shall be properly documented and filed as part of the
               account opening documents.

        3.9    XYZ shall not accept investments in cash from any new customer unless the
               source of such cash investments can be satisfactorily explained and verified.

        3.10   XYZ shall not open any account for any person below the age of 18 years
               unless the accounts are opened by the parents or guardians of such a person.
               In this case, verification shall be done not only for the under-aged person, but
               also for the parents or guardians who are opening the accounts.

        3.11   The approval of the CEO shall be required before accounts can be opened for
               any individual or organization resident abroad. All the documents required
               for individuals and organizations operating in Cty shall be applicable to those
               abroad modified as the case may be to reflect the differences in the operating
               environment. XYZ shall engage the services of a reputable legal firm for the
               verification of the documents received from all such customers.

        3.12   XYZ will not open accounts for any person whose public reputation is not
               consistent with the company’s corporate culture and ethical standards.
               Therefore where an account officer is not comfortable with the reputation of
               any individual or where that individual is or is considered to be a
               controversial person, the approval of the Group Head shall be sought before
               accounts are opened for such persons.



        THE PROCEDURE FOR PROSPECTIVE INDIVIDUAL CLIENTS

        1. Prospective clients should be made to fill an account opening form. Duly
           completed account opening form. Information in respect of date of birth,

By Chris C.O                      christianokafor@yahoo.com
               occupation, and residential and postal addresses should be properly completed.
               Phone numbers and e-mail addresses (where available) should also be obtained.
               A detailed description of the sources of income of the customer together with an
               estimate of the level of the customer’s annual income should be provided. Such
               general information as ‘business-man’ should be discouraged. If the customer is
               employed in any establishment, the name of the establishment together with the
               position of the customer in that establishment should be provided. In addition,
               the customer is expected to state the purpose for opening an account with XYZ
               and the source or sources of the funds to be invested in XYZ.

        2. Obtain proof of identity. - Current National Drivers License, National Identity
           Card, or Current International Passport. The identity card of the establishment
           where the customer works (though not acceptable for the purpose of proof of
           identity) should be obtained as part of the verification of the customers’
           employment. Where the customer has none of these acceptable proofs of
           identity, a written introduction by somebody with any of the required proof of
           identity will be required. The person doing the introduction would be required to
           attach a copy of his/her proof of identity together with the residential/contact.

        3. Obtain two recent passport photographs.

        4. Obtain a duly completed mandate form

        5. Obtain the birth certificate or sworn declaration of age

        6. Copy of recent utility bills in the customer’s name.

        7.     A reference letter from the customer’s bankers




By Chris C.O                         christianokafor@yahoo.com

								
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