Know Your Customer (KYC) Organisation Rules, 2017
Federal government in exercise of its powers conferred under sub section (2) of section 175 of the Securities Act, 2015 (III of 2015) read with clause (b) of Section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 have made the Centralized Know Your Customer (KYC) Organization Rules, 2017 published vide S.R.O. 298 (I) 2017 and the same had been published vide S.R.O. 336(I)/2016, together with forms etc. Know your customer (alternatively know your client or ‘KYC’) is the process of a business identifying and verifying the identity of its clients. The term is also used to refer to the bank and anti-money laundering regulations which governs these activities. Know your customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents, consultants, or distributors are anti-bribery compliant. The objectives of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. The procedures also enable banks to better underst and their customers and their financial dealings. This helps them manage their risks prudently.
