Banking Fundamentals, KYC and Due Diligence

Section A:

• –  Banking: Meaning and Functions

• –  Types of Banks

• –  Introduction to Investment Banking

• –  Central Banks and their role

• –  Correspondent Banking

• –  Wolfsberg Principles

Section B:

• –  What is KYC

• –  Why is KYC important to Banks

• –  What are the benefits of KYC

• –  What is end to end KYC process: Client Life Cycle

• –  KYC procedures

1. Customer Identification Program

2. Customer Due Diligence (CDD)

3. Enhanced Due Diligence (EDD)

4. Ongoing Monitoring

– Types of Review

1. Client Onboarding

2. Regular Review

3. Remediation

4. Event Driven Review

5. New Product Extension

6. Offboarding

   – Risk Classification:

   1. Country risk

   2. Industry risk

   3. Product risk

   4. Entity risk

   • –  KYC & AML/Bank Secrecy Act: Key points

   • –  KYC: Way forward

     Section C:

   • –  Capacity and Role

   • –  Client name

   • –  Nature of Client contact

   • –  Verification of existence

   • –  The Clients country of incorporation, registered address and principal place of

     business

   • –  Source of Funds

   • –  Background checks: PEPs, Sanctions and Adverse news

   • –  Ownership and Control Structure

   • –  Source of Wealth

   • –  Bearer shares

   • –  Audited Financial statements

   • –  Non-operating or shell companies