Basel Committee releases "Know Your Customer" paper

The Basel Committee on Banking Supervision has published a consultative paper designed to provide banks with guidance and best practices on "know your customer" (KYC) risks.

KYC programs are a cornerstone of the global anti-money laundering effort, and many national regulators have either recently promulgated rules, or are in the process of redrafting their existing regulation in this area. For example, the European Commission is expected to issue its third anti-money laundering directive in draft form before the end of the year.

The paper, “Consolidated KYC risk management,” is a supplement to the Basel Committee’s “Customer due diligence for banks,” issued in

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