What is the primary principle behind KYC (Know Your Customer) in banking?To enhance customer serviceTo protect banks from fraudsTo ensure ethical behavior by customersTo increase the bank's profits
Question
What is the primary principle behind KYC (Know Your Customer) in banking?To enhance customer serviceTo protect banks from fraudsTo ensure ethical behavior by customersTo increase the bank's profits
Solution
The primary principle behind KYC (Know Your Customer) in banking is to protect banks from frauds. This process involves verifying the identity of the customers, understanding their financial activities, and assessing the potential risks of illegal activities. This helps in ensuring that the services of the bank are not misused. The KYC process is also used by banks and other companies to comply with anti-money laundering laws and regulations.
Similar Questions
What does KYC stand for?OPTION ACTIONKnow Your Company Know Your Customer Keep Your Customers Know Your Compliance
An employee approves a Know Your Customer (KYC) or Know Your Business (KYB) check without meeting the requirements to facilitate financial crime. What is this an example of?Choisissez la meilleure optionMisrepresentation of Financial Statements and Reports Misappropriation of Customer Assets Circumvention of Control Environment
What does KYC stand for in the context of opening a Demat/Trading/Bank account ?(1.0 Marks)Know Your CurrencyAKnow Your ClientBKeeping Your CreditCKnowing Your Company
How do banks improve customer convenience in electronic banking? By sending frequent promotional emails By offering 24/7 support and services By limiting the number of transactions By reducing the number of available services
Which of the following is a key benefit of electronic banking for customers?Receiving paper statementsVisiting the bank branch frequentlyAccessing banking services outside of traditional banking hoursHaving limited transaction history
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