Regulatory Alerts2021-01-05
Directive on Adoption and Implementation of Minimum Standardized Know Your Client Forms for Capital Market Operators
The Securities and Exchange Commission (SEC) mandates all capital market operators to adopt and implement minimum standardized Know Your Client (KYC) forms for client onboarding and record management. Operators must integrate these forms into their institutional KYC policies by June 2021, apply them to all new clients starting January 2021, and update existing client records by December 2021. The directive requires policies to address customer acceptancy, identification procedures, transaction monitoring, and risk management, with non-compliance subject to enforcement actions under the Securities Industry Act 2016.
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