What’s KYC and AML?

Sounds complicated.  Let’s take a look at the confusing identification procedure!

“Why do I have to submit an I.D., take a selfie, and post it up? KYC? What a hassle!”

When receiving airdrops or participating in ICOs, I’m sure you’ve been curious about the purpose of KYC. Did you know that this procedure was actually part of AML?

AML, Anti-Money Laundering

There are four factors of AML.
1.Know Your Customer (KYC)
2.Sanctions list screening
3.Report on suspicious transactions (STR)
4.High-value cash transaction report (CTR)

KYC, Know Your Customer
KYC is a verification process to verify the identity of a customer. This step identifies the customer with a copy of the uploaded ID and a selfie picture.
You are subject to KYC in daily lives. When you go to a bank and open an account, you submit your ID card and fill out detailed personal information. That process is also KYC.

Sanctions list screening
It fully analyzes the possibility of money laundering by scrutinizing all the frequently updated lists of international organizations and government agencies, including high-risk individuals, negative press reports and political figures.

STR, Suspicious Transaction Report
A system that reports suspicious financial transactions that appear to be related to money laundering.

CTR, Currency Transaction Report
A system that reports cash transactions exceeding a certain amount.

Through anti money laundering process…
we can secure transparency and fairness in financial markets and save a lot of social costs! As FATF Recommendations will be applied to cryptocurrency exchanges, it would be better to have a compliance system in advance.

In need for KYC•AML essential for transparent fund transactions? ARGOS is with you.

Emma Kang

Author Emma Kang

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