With the great increase in fraud cases, in Brazil and around the world, there was a need to improve the processes capable of increasing security, for companies and customers, and to collaborate in the prevention of these risks. Some of these processes are KYC and AML.
These KYC (Know Your Customer) and AML (Anti-Money Laundering) terms are not new terms, in the financial market, several sectors, all over the world, already work with these practices. But recently, due to the growth in the number of attempts at fraudulent practices, these processes have gained prominence, since they collaborate to prevent crimes.
Know Your Customer is a set of practices and information that a company can get to know its customers.
The KYC process provides for companies in the most varied sectors to confirm the identity of their customers. It is possible to avoid fraud, ideological falsehood, among other things.
In a simpler way, KYC is what the name says "know your customer". It is to verify, legitimize and protect the information informed by the clients to avoid possible inconvenience.
Anti-Money Laundering (AML) is a term used by the financial industry to describe rules and procedures carried out by regulatory authorities to combat money laundering crimes and the financing of terrorism.
In view of the considerable increase in money laundering cases, companies and governments decided to look for ways to combat this crime and punish those who commit it. For this reason, this procedure and set of rules requires financial institutions to identify and monitor their clients, keeping records of operations up to date and, when necessary, reporting financial crimes, suspicious operations or any type of financial crime to COAF (Council for the Control of Financial Activities).
It is important to note that there are other processes that are also used by companies to avoid risks. The terms used are:
PEP (Politically Exposed Person)
This term covers all persons who have been or are in a relevant public position, such as presidents, governors, mayors, deputies, councilors, senators, among others. The people who are related to these PEP, on the other hand; as parents, children, spouses, children among others, they are called secondary PEPs.
Term used for the information search and verification processes of a company.
This term is used for the practice of searching for information about the background of an individual or legal entity. In this process, in addition to basic information such as ID, Social Insurance or Companies Registration Numbers, name or corporate name, it also seeks secondary information such as processes and pending issues.
The Fifth Anti-Money Laundering Directive of the European Union (5AMLD) is today the main reference currently followed by several nations, including beyond Europe. At Blocktane, we are in compliance with this regulation, this makes the exchange very well structured and responsible in all its operational and administrative aspects.
We also use the processes mentioned above, aiming at the safety of our customers and assets in custody. With that in mind, our registration process is automated and done in partnership with Sum & Substance.
And aiming even more for the safety of our customers, we rely on Balance's outsourced custody. This service is also used by real estate assets brokers and investment offices, as this type of custody offers protected storage with a military standard, used by banks and large institutions, which is why it is called institutional, offering insurance for wallets online and offline, that is, hot wallets and cold wallets.
As you can see, we highly value your safety and the safety of your assets. But, if you still have any questions about it, visit Blocktane’s website and talk to us via chat. Also on social media and the group on Telegram, through these means you will know, first hand, about our campaigns and promotions. Come and become a Blocktaner too!