Business

An Introduction to KYC: What it is and Why it Matters

An Introduction to KYC: Security is one of the main aspects of people’s well-being. Security control at airports, for example, is not a huge surprise for us since so many people gather in one place to travel.

To get on the plane, we need to provide an ID card. For financial institutions, identifying their customers and putting measures in place to stop financial crime is an ongoing challenge

. Notably, a series of increasingly complicated rules for customer identification known as KYC must be followed by financial institutions (including banks, cryptocurrency exchanges, and financial corporations).

This article will describe KYC, who needs it, and why it’s crucial. In addition, we will examine AML and KYC more closely before drawing a verdict. So, stay tuned!

KYC: What Is It?

KYC (Know Your Customer) is a collection of procedures for validating a customer’s identification before or while conducting business with banks and other financial organizations.

It is a typical due diligence procedure for assessing and monitoring client risk and confirming a customer’s identification. KYC verifies that a customer is who he or she claims to be.

Clients must supply credentials that show their identity and address under KYC. ID card verification, facial verification, biometric verification, and/or document verification are all examples of verification credentials.

Also, utility bills can be an example of acceptable evidence for verification of address.

KYC is vital for identifying client risk and whether the consumer is permitted to utilize the institution’s services.

It is also a legal need to follow Anti-Money Laundering (AML) regulations. Financial organizations must verify that clients who use their services are not involved in illegal activity.

As a result of these requirements, every business, platform, or organization that provides transactions must comply with these requirements.

Who Needs KYC?

To guarantee that they are not assisting money launderers or other criminals, financial institutions, such as banks, cryptocurrency exchanges, and other financial service providers, are required by law to adhere to KYC standards.

Crypto businesses place a lot of emphasis on KYC regulations since they guarantee compliance with legal requirements.

Since the goal of KYC for cryptocurrency exchanges is to prevent criminal activity and identify suspicious behavior as early as possible, these exchanges utilize the KYC data to analyze transaction trends to ensure secure and legal transactions.

Because of this, if you are thinking about the main features to implement when you start a cryptocurrency exchange on your own, it will be essential to include this functionality in order for your exchange to be reliable and effective.

Without KYC verification, a cryptocurrency exchange might be held responsible if a user gets away with committing a crime because the exchange didn’t take the necessary precautions.

Major exchanges now want to continue adhering to anti-money laundering regulations to make the best security. However, KYC and AML, while sometimes related, do not refer to the same thing.

So as you can understand, KYC regulations have become an increasingly critical issue for almost any institution interacting with money (so, just about every business).

While banks must comply with KYC to limit fraud, they also pass down that requirement to those organizations with whom they do business.

Why is KYC so Essential?

KYC processes aid in the prevention of identity theft, money laundering, fraud, terrorist financing, and other financial crimes.

KYC is needed by law for any business that cooperates with funds to validate a customer’s identification and detect risk indicators. Noncompliance might result in severe sanctions.

So here are the five main features that make KYC so important to implement :

KYC enables financial organizations to verify a customer’s legal identity. This can help to avoid fictitious accounts and identity fraud caused by forged or stolen identification papers.

KYC is intended to prevent fraudulent financial activity, such as applying for a loan with a fake or stolen ID and then receiving funds with a fraudulent account.

The organized and disorganized criminal sectors utilize fake bank accounts to hold funds for drugs, human trafficking, smuggling, racketeering, and other crimes.

These illegal sectors try to evade detection by distributing the money among a large number of accounts, but KYC prevents it.

When it comes to crypto trading, it is secure: there are no fraudsters, and the money and cryptocurrency on the exchange are legal.
Even if you are not a client of the exchange, you are protected. Assume your card has been stolen and someone is attempting to charge money from it through a bitcoin exchange. If the exchange does not have AML/KYC, your money is gone forever. And if the exchange has this policy, the fraudsters will be stopped, and your money will be sent back to your account.

AML & KYC: Difference

Anti-money laundering (AML) and Know Your Customer (KYC) are different in that AML refers to the legal and regulatory framework that financial institutions must follow in order to stop money laundering.

To be simple, KYC is one petal of AML, while AML is a flower, with each petal having its own feature. More specifically, KYC relates to confirming a customer’s identity and is a crucial aspect of the overall AML framework.

While AML might apply to a much larger variety of methods (such as transaction monitoring, increased due diligence, sanctions & PEP screening, and more) to monitor risk before and after KYC checks, KYC exclusively relates to identity verification and risk assessment.

Financial institutions are in charge of developing their KYC. AML legislation, however, differs by country or area.

As a result, financial organizations must create KYC processes that follow each set of AML requirements that differ in each country.

Final Thoughts

To stress, as we said, today we are absolutely calm about the increased security control at airports, for example.

The value of this procedure, however lengthy, is obvious to us all. Each of us is sacrificing a little bit of our time and comfort in order to be assured of our own safety.

It’s time to cultivate the same attitude about your financial security. That’s why KYC is a necessary step for any business that wants to ensure the safety and security of its customers.

By following the proper procedures and implementing a strong KYC process, your company can avoid potential legal issues and keep your customers happy. Have you started implementing KYC into your business? If not, now is the time to get started!

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Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP