{"id":797,"date":"2019-03-11T11:23:27","date_gmt":"2019-03-11T11:23:27","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=797"},"modified":"2021-04-26T12:59:50","modified_gmt":"2021-04-26T07:29:50","slug":"full-form-of-kyc-with-all-details","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/full-form-of-kyc-with-all-details","title":{"rendered":"Full Form of KYC with All Details"},"content":{"rendered":"

What is KYC?<\/b><\/h2>\n

The popularly used acronym, <\/span>KYC <\/b>stands for <\/span>Know Your Customer. <\/b>KYC is also referred to as <\/span>Know Your Client <\/b>alternatively<\/span>. <\/b>The term KYC is frequently used in the \u2018Banking\u2019 industry these days. The title suggests the meaning itself and indicates towards its main objective very clearly that \u2018Know Your Customer\u2019 refers to a formal process of \u2018knowing\u2019 or identifying your customer in a complete manner, which enables the bank or any such organization to keep complete information regarding the customer. <\/span>KYC<\/b> does not only exists in the banking industry but many other similar financial organizations\/companies\/businesses. \u2018KYC\u2019 is a basic customer identity verification process that lets the concerned organization keep a check on its customers and ensure their authenticity before they initiate any kind of mutual business. <\/span><\/p>\n

The process of KYC involves obtaining information of the customers that includes all their personal details with attached proofs, which works as an authentication of the customer\u2019s activities and assures the respective bank\/organization about a clean record of that client\/customer.<\/span><\/p>\n

Origin of KYC<\/b><\/h3>\n

Banks <\/b>in particular are compulsorily supposed to follow the KYC guidelines and undertake the process whenever they open a new bank account. <\/span>KYC <\/b>laws were initially instigated in the year <\/span>2001 <\/b>as a part of the \u2018Patriot Act\u2019 which got passed in the aftermath of the 9\/11 incident. The main motive behind passing the KYC laws was to provide ways to discourage or dissuade terrorist activities. <\/span><\/p>\n

\u2018Patriot Act\u2019 is an Act of Congress which was introduced by US President George Bush on October 26, 2001, which was focused on curbing terrorism. The complete title of the act is – the Act’s full title is <\/span>“U<\/b>niting<\/span> and S<\/b>trengthening<\/span> A<\/b>merica<\/span> by<\/span> P<\/b>roviding<\/span> A<\/b>ppropriate<\/span> T<\/b>ools<\/span> R<\/b>equired<\/span> to I<\/b>ntercept<\/span> and<\/span> O<\/b>bstruct<\/span> T<\/b>errorism<\/span>\u201d. <\/b>These laws were always in the pipeline, but due to the 9\/11 attacks, they gained speed and finally came to exist in a strong manner including India. <\/span><\/p>\n

The \u2018Patriot Act\u2019 makes it very clear that if a bank has any doubts about suspicious activity, it should file a \u2018suspicious activity report\u2019 right away. <\/span><\/p>\n

Purpose of KYC<\/b><\/h3>\n

As the title suggests, the meaning of KYC is \u2018Knowing Your Customer \/ Knowing Your Client\u2019 in a bank or a business company respectively. The main objectives\/purpose behind initiating the process of KYC are:<\/span><\/p>\n