The purpose of applying the KYC principle is to enable the money exchange center to form an appropriate understanding that it knows the true identity of each customer with a suitable level of confidence and understands the types of business and transactions the customer is likely to conduct with the money exchange center. The money exchange center’s procedures should include the following to achieve this principle:

1. Continuously identify and verify the identity of all permanent and transient customers.
2. Identify and verify the true beneficiaries of all transactions conducted by customers to the extent that achieves full understanding and knowledge.
3. Assess the risks associated with different types of customers and take appropriate actions to enhance identification and verification requirements for customers or true beneficiaries.
4. Continuously update the identification and verification requirements for all customers and true beneficiaries.
5. Monitor changes in the identity of customers and true beneficiaries and address their impact on oversight and control requirements.
6. Customer and beneficial owner identification records should be accessible to the person responsible for compliance with anti-money laundering and counter-terrorism financing standards and relevant responsible officials.
7. Verify customer and true beneficiary identities from reliable and independent sources.