Signify Interview Questions and Answers

KYC is crucial for financial institutions to prevent money laundering and terrorist financing.

• KYC (Know Your Customer) is a process of verifying the identity of customers and assessing their potential risks.

• Financial institutions are required by law to perform KYC to prevent money laundering and terrorist financing.

• KYC includes collecting personal information, verifying identity documents, and screening against sanctions and watchlists.

• Failure to comply with KYC regulations c...read more

CDD is the process of verifying the identity of a customer and assessing their risk level.

• CDD is a key component of AML compliance.

• It involves collecting and verifying customer information, such as name, address, and date of birth.

• CDD also involves assessing the risk level of the customer based on factors such as their occupation, source of funds, and geographic location.

• The level of CDD required may vary depending on the risk level of the customer.

• For example, a high-risk cu...read more

Companies use KYC to verify the identity of their customers and comply with regulations.

• KYC helps companies prevent fraud and financial crimes.

• KYC also helps companies build trust with their customers.

• KYC is required by law in many countries to prevent money laundering and terrorist financing.

• KYC can also help companies better understand their customers and tailor their products and services to their needs.

• Examples of companies that use KYC include banks, insurance companies,...read more

Banks do KYC to comply with regulations and prevent financial crimes.

• KYC helps banks verify the identity of their customers and assess the risk of doing business with them.

• Regulators require banks to implement KYC procedures to prevent money laundering, terrorist financing, and other financial crimes.

• KYC also helps banks maintain a good reputation and avoid legal and financial penalties.

• Examples of KYC regulations include the USA PATRIOT Act, the EU's Fourth Anti-Money Launde...read more

OFAC and FATCA are regulations related to financial compliance. CDD and EDD are customer due diligence and enhanced due diligence processes.

• OFAC (Office of Foreign Assets Control) is a US government agency that enforces economic and trade sanctions against countries, organizations, and individuals involved in terrorism, narcotics trafficking, and other illegal activities.

• FATCA (Foreign Account Tax Compliance Act) is a US law that requires foreign financial institutions to rep...read more