Know Your Customer or KYC is a term that is used by business owners to identify the customers with whom they are doing businesses. This law was introduced in the United States as the Patriot Act after the infamous 9/11 attack. This act requires all organizations to fulfill two requirements to stay compliant; these are The Customer Identification Program (CIP) and Customer Due Diligence (CDD). How do aircraft companies especially the aircraft trust companies follow this KYC policy and stay compliant?
The Customer Identification Number
This is an integral part of the KYC process. The board of directors must write and approve the CIP. All financial institutions have the highest CIP standard, and they should implement a program fitting the size, location and type of business. An aircraft guarantee corporation seeks help from the guidelines developed by the financial institutions to create a process for the business.
The first step is identification. You should know with whom you are doing business and if there is any factors about the individual that would raise a read flag. There are a few pieces of information that is required for you to know about your customer base.
- Company identity i.e. name and industry
- Location or office address
- Identity of key personnel
- If there is any negative information found by The Office of Foreign Assets Control (OFAC) at the US Treasury Department and The System for Award Management (SAM) US Federal Government
Aircraft trust companies need to know about the buyers and review the information stated below:
- Name, address and contact details
- Social identification number along with official information details such as passport details and driving details.
Customer Due Diligence and Enhanced Due Diligence
Customer Due Diligence or CDD shows the risk management steps those are taken to stay compliant with KYC. This process generally uses CIP information for assessing risk profile of the customers. On the other hand, Enhanced Due Diligence is required for the customers who are at high risk.
People who need EDD are:
- Potentially exposed people
- Accounts that actively deal with high-risk countries
Aircraft trust companies conduct CDD completely before beginning any business agreements. They also make a periodic check to determine previously found information and the current information is the same or not. We, at Aviation Trust Company, follow these terms with a more organized manner and at a high standard. Being a customer, you can completely rely on us because we are here for you.