Banking · Know Your Customer (KYC)

Analyze the following statements concerning the operational nuances of the KYC process for different types of customers and select the appropriate summary response. Statement 1: For the purpose of periodic updation of KYC, high-risk customers are required to provide updated documents at least once every two years from the date of the last KYC, while medium-risk customers must do so once every eight years. This frequency is determined by the bank's internal risk categorization policy. Statement 2: In the case of low-risk customers, if there is no change in the KYC information already available with the bank, a self-declaration from the customer through non-face-to-face channels such as email, ATM, or internet banking is sufficient for the periodic updation. However, if there is a change in the address, the bank must obtain an OVD or a deemed OVD within a period of six months. Statement 3: When a bank relies on a third party for the purpose of carrying out Customer Due Diligence, the ultimate responsibility for the identification and verification of the customer remains with the third party, provided the third party is regulated and supervised by a competent authority. Statement 4: For non-face-to-face onboarding of customers, other than through V-CIP, the bank must ensure that the first payment for the account is made from another existing bank account of the customer with a regulated entity that has performed a full KYC.