Understanding these terms helps you know why certain verification processes exist and why BankSocial® follows them.
PEP – Politically Exposed Person
Refers to individuals in prominent public positions, their immediate family members, and close associates.
PEPs are subject to additional scrutiny in financial services to prevent corruption and financial crimes.
AML – Anti-Money Laundering
Federal regulations that require financial institutions and Money Services Businesses (MSBs) to detect and prevent money laundering.
Often referred to as BSA (Bank Secrecy Act) or BSA/AML.
Ensures financial systems are safe and reduces the risk of illicit funds entering the economy.
KYC – Know Your Customer
A federally mandated process for identifying and verifying a customer’s identity.
Required at account opening and maintained throughout the account relationship.
Helps BankSocial® ensure compliance with federal law and protect your account from fraud or misuse.