KYC-Know Your Customer - Bosch Software Innovations

KYC – Know Your Customer
What Information Is Contained
In a KYC Profile?
A KYC profile is an aggregate collection of information
on a customer. This information is used to get to know
the customer, and enables the financial institution to
assess the customer's business operations, activities
and the plausibility of all statements.
As described in the introduction, the KYC profile contains
much more information than the identity of the
customer. This additional information is described in
the following sections.
Information On The Person
A distinction is made with regard to the information
collected between natural and juridical persons. In
general, all readily available information such as name,
country of domicile, customer number or customer
account manager is transferred from the master data
into the KYC profile.
Individual
In the case of individuals, the following additional information
is recorded:
� Occupation and/or business activity
­ employed yes/no
­ if yes: freelance or salaried, job details, industry
sector, etc.
­ if no: relevant details, e.g., housewife, pensioner
or other; previous occupation, trainee, etc.
� Purpose of the business relationship
­ personal payment transactions, e.g., salary account,
account for pension payments, etc.
­ savings, investment or asset management
­ other (more detailed description required)
Business Entity
In the case of business entities, the following information
is recorded depending on the type of company:
� For operating companies
­ type of company, business activity, industry
sector, industry sector code, number of employees,
partners, ownership percentages
­ expected level of turnover and payment transactions:
level of receipts and payments, volume
of cash transactions (receipts/payments)
� For a domiciliary company (foundation, trust, etc.)
­ purpose of the company (investment or asset
management, estate administration or planning,
tax optimization, etc.)
­ countries with established links
­ more detailed description of the purpose
� Other business entities such as investment companies
or institutional investors (pension funds, insurance
companies, etc.)
­ type, business activity and industry sector, etc.
Origin and Source of the Asset
Legislation requires appropriate actions be t aken in
order to determine the source of the asset, and t he
funds that are applied as part of the business relationship
and/or transaction. In the event that the source of
the asset is not clear, an investigation must be carried
out that includes directly asking the customer. In cases
of doubt, the customer must provide appropriate evidence
of the legal validity of the asset.
The following information is to be obtained:
� Source of the assets
­ commercial / freelance/ salaried work
­ inheritance
­ sale of investments
­ sale of property
­ other
If possible, additional information is to be recorded on
each sub point such as type and s ource of income,
name of deceased, details of the investment, location
of the real estate, etc. In an i deal situation, this information
can be substantiated by appropriate documents
and attached to the KYC profile as an electronic copy.
It is also possible to specify in the KYC profile whether
bank employees are able to inspect the document.
� Amount of asset inflows to be expected on the
opening of the business
� Amount of assets to be deposited on a long-term
planned basis
� Expected account turnover per year (receipts and
payments)
� Type of asset receipt
­ cash
­ bank transfer (from which bank)
­ transfer of securities account (from which bank)
­ other (delivery of physical stocks, etc.)
Beneficial Owner
Information on the beneficial owners also belongs in a
KYC profile. If this information is already recorded in
the master data in another area, it can simply be imported
into the KYC profile. If data on t he beneficial
owners is not administered in another area, the relevant
persons are recorded in the KYC profile.
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