Knowing your customer (KYC) is a business
Knowing your customer (KYC) is a business process to identify and validate the customer's identity. When members are close to CMME and want to participate, they are required to provide specific documents to enable CMME to identify, validate and maintain records of the business structure of the members concerned, as well as to control and own key personnel of the business. This is the so-called KYC. CMME Group has a KYC policy which covers due diligence conducted by CMME on behalf of its members and interested parties in accordance with the Exchange Regulations and applicable SCA Regulations. The policy also outlines the obligations of CMME Group and its members in respect of KYC. Continuous reassessment of KYC information provided by members requires members to assist CMME in updating KYC information (at least once a year), if necessary. CMME Group uses the KYC framework to help prevent potential risks of financial crime, so that CMME can understand the business of its members and establish sustainable relationships. CMME Group adheres to global industry best practice standards, including the Globally Recognized Financial Action Task Force (FATF) Guidelines for Customer Identification and Record Preservation. CMME requires members with trading rights to comply with these requirements when conducting necessary due diligence investigations on their customers. In particular, these obligations include: Documents are kept for at least 10 years. For closed accounts, documents should be kept for at least 10 years. Documents should be kept in a safe place. Documents should be original. Documents of foreign customers shall be notarized by legal or government officials. Customer information will be updated continuously. CMME Group strictly abides by the applicable laws and regulations of KYC. Mandatory regulations require: It outlines the minimum standards for capturing background information about clients. Guidelines for KYC processes and KYC support documents that new customers should obtain when they enter the job.
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