The Importance of Know Your Customer (KYC) and AML/CTF

Know Your Customer (KYC) is a mandatory verification and security process that enables hoteliers to process payments and receive funds into their accounts which is designed to meet the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Act. The KYC, AML and CTF procedures are essential to understand when it comes to compliance. 

These verification steps help prevent illegal criminal activites that include money laundering, identify theft, terrorist financing and other criminal activities when processing payments. KYC and AML/CTF checks are a verification practice that applies to all countries, globally. 

Within any industry, not only hotel payments, if a merchant is allowed to take and process payments, they will need to undergo the KYC and AML/CTF identity check.

When Kovena onboards a new customer, an in-depth identity check will occur. The information and documents that will need to be supplied are to prove the business(es) are legitimate, and that the client(s) are who they say they are. The documents are listed below:

The KYC process involves examining the client entity and conducting verification on the individuals who are associated with the entity. Kovena will verify individuals with 25% (or more) beneficial ownership. If there are no beneficial owners with at least 25% ownership, we may ask that a single individual with control over the entity’s finances and (or) operations be verified on behalf of the entity. 

The following details below are needed when verifying clients:

Business Details

  • Country of Registration
  • Registered Entity Name
  • Business Registration Number
  • Entity Type (i.e. Individual, Private Company, Partnership, Trust, Public Company, or Other)
  • Date of Registration
  • Registered Address and Trading Address
  • Website URLs

Providing Necessary Documents

  • Beneficial Owners Identification (e.g. Passport, Driver’s License, or other forms of Photo ID)
  • Proof of Business Registration (e.g. NIB, Local Registration Number, etc.)

This information will remain confidential, held securely, and will not be shared outside of Kovena.

If there are any questions in regards to KYC and AML/CTF, please contact us

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