The know-your-customer principle (KYC) is the verification of personal and business data of new customers of a financial service provider for the prevention of money laundering and terrorist financing on the basis of the Money Laundering Act.
1. term: The Know-your-Customer Principle (KYC) is the verification of the personal and business data of new customers of a credit institution for the prevention of money laundering and terrorist financing on the basis of the Money Laundering Act 2008.
2. the basis for the (KYC) requirement of European financial institutions is Art. 8 in the 3rd EU Money Laundering Directive and in Switzerland the Federal Act on the Prevention of Money Laundering and Terrorist Financing
3. inspection obligations: The information Payrexx is required to collect differs from country to country, and typically includes (but is not limited to):
- The individual creating the Payrexx account
- The business associated with the Payrexx account
- Any individuals who ultimately own or control that business
4 Consequences of non-compliance: If the special regulations are not complied with, the financial companies are threatened with severe fines, prison sentences for senior employees or even the withdrawal of the business permit. In addition, the reputational risk should not be underestimated.