2.1.2 KYC Reviews - Life Cycle of a Customer

Know Your Customer assesses a customer’s risk to a bank or FI. KYC is a continuous assessment process and not a one-time assessment of a customer. Customers are assessed in different stages of their relationship with the bank or FI.

The following figure depicts the KYC process during the customer’s life cycle. The system has different stages, such as Onboarding, risk assessment, and risk scoring. These stages are explained as follows:

Figure 2-1 KYC Life Cycle

Description of "Figure 2-1 KYC Life Cycle"

As a part of the customer life cycle, OFS KYC reviews the customer in the following ways:

• Deployment Initiation
• New Accounts End of Day Review
• Continuous Review of Customers
• Deriving at the KYC Risk Score
• Enhanced Due Diligence