Why Is Re KYC Solution Important for Businesses?

1. Why Is Re KYC Solution Important for Businesses? Before discussing Re-KYC, let's make sure everyone is aware of what KYC is. "Know Your Customer," or KYC, is an essential legal and regulatory requirement in the financial industry. Its main goals are to verify customers' identities, assess the risks associated with doing business with them, and make sure they aren't engaged in any illegal activity like fraud or money laundering. Re-KYC stands for "Re-Know Your Customer," a procedure that entails routinely updating the data and supporting materials that clients give to banks and other financial organizations. For both individual and non-individual clients, following legal requirements—like those established by the Reserve Bank of India—is a crucial process. What is the Re KYC? Every new user is given a relevant risk score during KYC onboarding. Re-KYC is a procedure that is started to help financial institutions "know their customer" following the onboarding stage so that their databases have the most recent and accurate user data. According to standard standards, after onboarding, a customer who is considered "low risk" must undergo KYC every three years. Customers classified as "medium risk" will undergo KYC every two years, while "high risk" users will do KYC annually. A user's risk profile may alter during the customer's lifetime,

2. identity papers may need to be updated to comply with new rules, or suspicious transactions may raise red flags that necessitate account authentication. Businesses that are always unfamiliar with their customers run the risk of having scammers in their customer base: leaving them vulnerable to money laundering, terrorist financing, and regulatory violations. The Re KYC Requirements and Guidelines The clientele is separated into three categories: high, medium, and low, as was previously mentioned. These numbers could be lower for each risk category, particularly if the financial institution decides that suspicious activity warrants updating the consumer's information. To adjust the related periods for client re kyc online, the risk ratings must also be updated frequently. ● High-Risk Clients A high-risk client needs to be present in person at a financial institution branch in order to submit information for ReKYC. The customer can also choose to use a Re KYC option in an ATM that is connected. For high-risk clients, re-KYC or KYC updates must be completed at least once every two years. ● Medium-Risk Customers

3. To complete Re KYC, a medium-risk customer needs to visit an ATM or branch of a financial institution in person once more. For these consumers, the re kyc online procedure needs to be completed once every eight years. ● Low-Risk Clients Re KYC does not require a low-risk client to visit the bank in person. They can use the app or web interface that the financial institution has designated to submit their information. For those who pose little risk, Re KYC can be performed once every ten years. Why Require Our Re-KYC Services? ➢ Regular evaluation Periodically, re-KYC is necessary, especially for low-risk accounts like bank savings accounts. To keep records current, the Reserve Bank of India (RBI) requires financial institutions to conduct re-KYC for these types of bank accounts at least once per year or every two years. Regular evaluations also guarantee that any modifications to your profile are promptly recorded, avoiding inconsistencies. ➢ Not providing all necessary KYC when starting an account If you submitted any inaccurate or out-of-date information during the first KYC, a re KYC services near me can help fix such errors and guarantee your information is current. Such updated information is necessary for upcoming correspondence and business dealings. ➢ Modification to your profile

4. Your profile may experience significant changes over time, including changes to your residence, phone number, or place of employment. The financial institution can record these changes and keep correct records thanks to re-KYC. The organization will be able to provide smooth services and guarantee that your data is accurate given your current situation by doing this. ➢ Increased diligence Due diligence may be required in some situations, such as your transactional conduct or a higher risk perception. Re-KYC makes it easier to assess your risk profile in-depth. For example, if you begin receiving atypically large amounts of money or exhibit odd account behavior, the institution may require a new KYC to reassess your risk profile and confirm the authenticity of the financial activities. Final thoughts Re-KYC is crucial to preserving the integrity of the banking system. It helps build a solid and up-to-date database, which improves the organization's ability to evaluate and identify a range of questionable transactions and lowers the possibility of criminal activity and financial fraud. Financial institutions can also provide more specialized banking services depending on your current financial profile by periodically revalidating your information. Our re KYC services near me at Moen Technologies is carried out periodically according to the risk considerations of the client. Financial institutions and banks provide customers with updates on this procedure through the paperwork they get when opening an account.