Kang Fintech Solutions (KFS)

Customer KYC Policy

1. Introduction

Kang Fintech Solutions (KFS) is committed to maintaining the highest standards of integrity, security, and compliance in its operations. This Know Your Customer (KYC) Policy outlines the procedures and measures KFS employs to verify the identity of its customers, assess potential risks, and ensure compliance with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

This policy is designed to comply with global KYC regulations, including but not limited to the Financial Action Task Force (FATF) recommendations, the USA PATRIOT Act, the European Union’s AML Directives, and other applicable laws and regulations.

2. Objectives

The primary objectives of this KYC Policy are to:

1. Verify the identity of customers to prevent fraud, money laundering, and terrorist financing.
   
2. Assess and mitigate risks associated with customer relationships and transactions.
   
3. Ensure compliance with international and local regulatory requirements.
   
4. Protect KFS and its customers from financial crimes and reputational risks.
   

3. Scope

This policy applies to all customers of KFS, including individuals, businesses, and other entities, who use KFS services. It covers the following activities:

• Customer onboarding and account opening.
  
• Ongoing monitoring of customer accounts and transactions.
  
• Enhanced due diligence for high-risk customers.
  
• Reporting suspicious activities to relevant authorities.
  

4. Customer Identification Program (CIP)

KFS implements a robust Customer Identification Program (CIP) to verify the identity of all customers. The CIP includes the following steps:

4.1 Individual Customers

For individual customers, the following information and documents are required:

• Full Name: As per government-issued identification.
  
• Date of Birth: To verify age and identity.
  
• Residential Address: Proof of address (e.g., utility bill, bank statement).
  
• Government-Issued ID: Passport, national ID card, or driver’s license.
  
• Tax Identification Number (TIN): Where applicable.
  
• Photograph: Recent photograph for identity verification.
  

4.2 Business Customers

For business customers, the following information and documents are required:

• Business Name: Official name as registered.
  
• Business Address: Proof of business address.
  
• Registration Documents: Certificate of incorporation or business registration.
  
• Tax Identification Number (TIN): For tax compliance.
  
• Ownership Structure: Details of beneficial owners (individuals owning 25% or more of the business).
  
• Authorized Representatives: Identification documents for authorized signatories.
  

4.3 Politically Exposed Persons (PEPs)

For customers identified as Politically Exposed Persons (PEPs), enhanced due diligence (EDD) measures will be applied, including:

• Verification of the source of wealth and funds.
  
• Approval from senior management before onboarding.
  
• Ongoing monitoring of transactions and activities.
  

5. Risk Assessment and Due Diligence

KFS categorizes customers into risk levels based on factors such as geography, business type, transaction patterns, and customer profile. The following due diligence measures are applied:

5.1 Simplified Due Diligence (SDD)

For low-risk customers, such as individuals with low transaction volumes, SDD measures include:

• Basic identity verification.
  
• Limited ongoing monitoring.
  

5.2 Standard Due Diligence (SDD)

For medium-risk customers, such as small businesses, SDD measures include:

• Verification of identity and business details.
  
• Regular monitoring of transactions.
  

5.3 Enhanced Due Diligence (EDD)

For high-risk customers, such as PEPs or customers from high-risk jurisdictions, EDD measures include:

• Verification of the source of wealth and funds.
  
• Additional documentation and approvals.
  
• Continuous monitoring and reporting.
  

6. Ongoing Monitoring and Reporting

KFS implements ongoing monitoring systems to detect and report suspicious activities. This includes:

6.1 Transaction Monitoring

• Automated systems to flag unusual or high-risk transactions.
  
• Manual review of flagged transactions by the compliance team.
  

6.2 Suspicious Activity Reporting (SAR)

• Reporting suspicious activities to the relevant financial intelligence unit (FIU) or regulatory authority.
  
• Maintaining records of SARs for audit and regulatory purposes.
  

6.3 Periodic Reviews

• Regular reviews of customer profiles and risk levels.
  
• Updates to customer information as required.
  

7. Record Keeping

KFS maintains records of all customer identification documents, transaction records, and due diligence measures for a minimum of five (5) years after the termination of the customer relationship. These records are stored securely and are accessible only to authorized personnel.

8. Training and Awareness

KFS provides regular training to employees on KYC, AML, and CTF policies and procedures. This includes:

• Training on identifying and reporting suspicious activities.
  
• Updates on regulatory changes and compliance requirements.
  
• Awareness programs to promote a culture of compliance.
  

9. Compliance and Audit

KFS has a dedicated compliance team responsible for ensuring adherence to this KYC Policy. The compliance team conducts regular internal audits and works with external auditors to assess the effectiveness of the KYC program.

10. Penalties for Non-Compliance

Failure to comply with this KYC Policy may result in disciplinary action, including termination of employment for employees and termination of customer relationships for non-compliant customers.

11. Policy Review and Updates

This KYC Policy is reviewed annually or as needed to ensure compliance with changing regulatory requirements and international standards. Updates to the policy are communicated to all relevant stakeholders.

12. Contact Information

For questions or concerns regarding this KYC Policy, please contact:

• Compliance Team: compliance@kangfintechsolutions.com
• Support Team: help@kangfintechsolutions.com
  

Address:
Kang Fintech Solutions
Bamenda, North West Region, Cameroon

By implementing this KYC Policy, KFS aims to maintain the highest standards of compliance, security, and customer trust.

Kang Fintech Solutions (KFS)
Empowering Financial Innovation in Cameroon.