Share
Explore BrainMass

There are many data sources that can help with KYC (Know You

There are many data sources that can help with KYC (Know Your Customer) procedures. Discuss where the line is drawn between KYC and the invasion of privacy.

How do you develop a policy to investigate customers and prospects without crossing the line of confidentiality?
How do you protect your clients and employees?
Name the data sources that would be helpful in a due diligence process.
Who should have access to these?
Should all levels of employees of access?
How would you develop a procedure of level of access if you were developing a compliance program in the stock brokerage firm you work for?

Solution Preview

Companies that engage in KYC practices typically use the same set of standards to write their policies. The general guidelines include using basic identifying information, akin to what would be provided to financial institutions under the routine conditions of opening accounts. The information is generally sensitive but standard with regard to these criteria. The policy typically includes that the company monitor customer behavior and activity patterns. The remaining parts of the policy are usually planned based on the information that has been already obtained by the customer. Through information obtained and observation, the company is usually safe from crossing the ...

Solution Summary

There are many data sources that can help with KYC (Know Your Customer) procedures. Discuss where the line is drawn between KYC and the invasion of privacy.

How do you develop a policy to investigate customers and prospects without crossing the line of confidentiality?
How do you protect your clients and employees?
Name the data sources that would be helpful in a due diligence process.
Who should have access to these?
Should all levels of employees of access?
How would you develop a procedure of level of access if you were developing a compliance program in the stock brokerage firm you work for?

$2.19