Bankowość · 7.12.1998

``Know Your Customer'' Requirements

The OCC is proposing to issue a regulation requiring national banks to develop and maintain ``Know Your Customer'' programs. As proposed, the regulation would require each bank to develop a program designed to determine the identity of its customers; determine its customers' sources of funds; determine the normal and expected transactions of its customers; monitor account activity for transactions that are inconsistent with those normal and expected transactions; and report any transactions of its customers that are determined to be suspicious, in accordance with the OCC's existing suspicious activity reporting regulation. By requiring banks to determine the identity of their customers, as well as to obtain knowledge regarding the legitimate activities of their customers, the proposed regulation will reduce the likelihood that banks will become unwitting participants in illicit activities conducted or attempted by their customers.