Basel Committee Issues Guidance on Consolidated KYC Risk Management

On October 7, 2004, the Basel Committee on Banking Supervision (BCBS) issued guidance on Consolidated Know Your Customer (KYC) Risk Management. The paper is designed to help set standards and provide guidance for banks that have multi-jurisdictional offices. Hence, it is directly relevant to many contemporary international banks. In October 2001, the BCBS issued customer due diligence for banks. In February 2003, it reinforced this by a General Guide to account for opening and customer identification (CDD). The latter paper outlines four essential elements required for a sound KYC program: (1) customer acceptance policy; (2) customer identification; (3) on-going monitoring of high risk accounts; and (4) risk management...[more]