2. Why KYC needs to be perform on clients

Question

Accepted Answer

KYC is essential to verify the identity of clients and prevent fraud, money laundering, and terrorist financing.

KYC helps in verifying the identity of clients to ensure they are who they claim to be.
It helps in preventing fraud by identifying suspicious activities and individuals.
KYC also helps in complying with regulatory requirements and preventing money laundering and terrorist financing.
It helps in building trust with clients and maintaining a good reputation in the market.
Without proper KYC, financial institutions are at risk of legal and financial consequences.

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