What Is eKYC (Electronic Know Your Customer)?
Key Takeaways: eKYC (Electronic Know Your Customer) is the digital process of verifying the identity of clients, meeting KYC requirements digitally. It assesses their suitability and the potential risks of illegal intentions in business relationships. eKYC eliminates the need for manual verification and paperwork, making it faster and more efficient. Additionally, digital verification methods often […]
What Is the Securities and Exchange Commission (SEC)?
Key Takeaways: The U.S. Securities and Exchange Commission (SEC) is a federal agency responsible for regulating the securities industry. It’s goal is to protect investors and ensure fair, orderly, and efficient markets. The SEC enforces securities laws to protect investors, requiring public companies to disclose critical financial information that aids in informed decision-making. The SEC’s […]
What Is KYC (Know Your Customer)?
Key Takeaways: KYC (Know Your Customer) requires businesses to verify customer identities before conducting financial transactions. This process helps prevent fraud, money laundering, and identity theft by ensuring that individuals are who they claim to be. KYC verification is part of the broader Customer Due Diligence (CDD) framework, which involves ongoing transaction monitoring to detect […]
What Is the EU’s Digital Identity (EUDI) Wallet?
Key Takeaways: The EUDI Wallet is a secure, user-controlled system designed to identify European citizens. It allows individuals to manage their digital ID and access services across the EU while maintaining privacy. It enables seamless access to both public and private services within the EU, making cross-border identification and verification simpler and more efficient. The […]
What Is the EU AI Act? The First Comprehensive AI Regulation
Key Takeaways: The EU AI Act is the first comprehensive law designed to regulate AI technology across Europe. It aims to ensure that AI systems are developed and used safely, fairly, and transparently while protecting people’s rights. AI systems are classified based on risk. High-risk systems must meet strict standards, while low-risk systems have lighter requirements. […]
What Is the Commodity Futures Trading Commission (CFTC)?
Key Takeaways: The Commodity Futures Trading Commission (CFTC) is an independent U.S. government agency that regulates the derivatives markets. These markets include futures, options, and swaps, ensuring they operate fairly and transparently. The CFTC works to protect market participants and the public from fraud, manipulation, and abusive practices in the trading of derivatives. While the […]
What Is Anti-Money Laundering (AML)?
Key Takeaways: Anti-Money Laundering (AML) are laws, regulations, and procedures that prevent criminals from disguising illegally obtained funds as legitimate income. Governments and international organizations enforce AML regulations to detect, disrupt, and prevent the flow of illicit funds. Financial institutions are required to implement AML measures to ensure compliance and protect the financial system from […]
What Is KYC Fraud?
Key Takeaways: KYC fraud involves individuals providing false or misleading information during the Know Your Customer (KYC) process to deceive financial institutions or businesses. This deceptive practice undermines the integrity of financial systems and can lead to significant financial crimes, including money laundering and terrorist financing. Common tactics include identity theft, synthetic identity creation, and […]
What Is a Customer Identification Program (CIP)?
Key Takeaways: The Customer Identification Program (CIP) focuses on the initial verification of a customer’s identity to comply with regulatory requirements. CIP requires businesses to collect specific customer information, such as name, address, date of birth, and identification number, to verify identity. CIP is a crucial component of the broader Know Your Customer (KYC) process, […]
