KYC / AML Explained


#1

KYC and AML are type of compliance that can help Electroneum to earn legitimacy.

What’s Ahead for Electroneum can be found here: Electroneum in September, Q4 and beyond

Know your customer (alternatively know your client or ‘KYC’) is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. The term is also used to refer to the bank regulations and anti-money laundering regulations which govern these activities. Know your customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents, consultants, or distributors are anti-bribery compliant. Banks, insurers and export creditors are increasingly demanding that customers provide detailed anti-corruption due diligence information.

Anti-Money Laundering (AML) Software is software used in the finance and legal industries to meet the legal requirements for financial institutions and other regulated entities to prevent or report money laundering activities. There are four basic types of software that address anti-money laundering: transaction monitoring systems, currency transaction reporting (CTR) systems, customer identity management systems and compliance management software.

Source: https://en.wikipedia.org/wiki/Know_your_customer
Source: https://en.wikipedia.org/wiki/Anti-money_laundering_software

Update regarding KYC implementation - 09/07/2018

Completing KYC

KYC / AML FAQs


KYC ! Electroneum please be careful
Electroneum in September, Q4 and beyond
#2

Nice explain…:+1:


#3

great stuff mate…i look at it this way… kyc is a good thing and it will make etn more legit…buy and hold brother…


#4

Nicely explained…But you will still get ppl asking what it is…lol


#5

Thanks @cuddlesquid for the KYC and AML Explanation :+1:


#6

Thanks for sharing I did wonder what these terms ment I had heard them a few times. Since we are gong to be following these regulations we should be able to get en Electroneum debit card like alot of others already have.


#7

Interested to know how it affects the individual ETN user, if at all… surely there will be people who will be unable to provide ID such as passports or driving licences… will they need this to pay their phone bills with ETN?


#8

@Pete not quite like that, in simple terms, AML validates businesses, KYC validates clients. If Electroneum launches KYC, we will be required to be verified by submitting verification documents such as photo id. This would make Electroneum more legitimate and debunk a lot of FUD.


#9

Thank you for that, was wondering what the second one meant


#10

I highly support the regulation


#11

Well explained. Thanks mate. ETN to the moon!


#12

KYC/AML is very much aimed at individuals too though, not just companies.


#13

We see KYC / AML as fundamentally important for us at Electroneum to unlocking the ability to work with corporate partners. This will allow us to be both credible and attractive to mobile operators and other businesses who we will want and need to work with to grow our ecosystem moving forward.


#14

@Pete I couldn’t come up with an example for individuals, have any idea to explain how KYC/AML aims at individuals? Thank you!


#15

I am just thinking of when you open a bank account (or even most crypto exchanges) you provide proof of identity and proof of address… this is all for KYC/AML purposes.

But as Nick has explained above and as you stated previously it is mainly just for business to business dealings with ETN.

Perhaps if businesses know that ETN Ltd itself is “clean” it doesn’t matter if the people actually using ETN are money launderers… as a fintech company of sorts their app/wallet is a kind of bank account after all… just thinking aloud here and wondering where regulations will take us in future.


#16

Thanks for this Nick, so you don’t see that as a fintech company you will be compelled by regulators to require more info from people who are registered with you as users, or that the corporate partners will require it in order to receive payments from those individuals in ETN?


#17

@Pete Awesome! Thank you!


#18

People might lose their account because not everyone can afford all the requirements. Am example i do not have international identity card, please I don’t want to lose any of my investment.


#19

Yes, higher transaction require prove and verification


#20

You might not need to make any changes to your account at all. It depends on where you are and how much you hold and transact. I would be happy to have a look for you.