A Comprehensive Guide to C.A.M.S KYC for KRA

Introduction

The Capital Markets Authority (CMA) of Kenya requires all Capital Markets Services (CMS) Licensees to conduct Know Your Customer (KYC) due diligence on their clients. This is to prevent money laundering, terrorism financing, and other financial crimes.

The Central Depository and Settlement Corporation (CDSC) has developed the C.A.M.S KYC platform to facilitate this process.

What is C.A.M.S KYC?

C.A.M.S KYC is an online platform that allows CMS Licensees to:

• Collect and verify client information
• Screen clients against sanctions lists
• Assess clients' risk profiles
• Generate KYC reports

Why is C.A.M.S KYC Important?

C.A.M.S KYC is important because it helps CMS Licensees to:

• Comply with regulatory requirements
• Protect their businesses from financial crime
• Build trust with their clients

How to Use C.A.M.S KYC

To use C.A.M.S KYC, CMS Licensees must first register with the platform. Once registered, they can log in and create client profiles.

Client profiles include basic information such as the client's name, address, and occupation. They also include information about the client's financial activity, such as their income and investments.

CMS Licensees must verify the information in client profiles using supporting documents. These documents can include passports, driver's licenses, and utility bills.

Once the client profile is verified, CMS Licensees can screen the client against sanctions lists. Sanctions lists are maintained by governments and international organizations to identify individuals and entities that are involved in terrorism, money laundering, and other financial crimes.

CMS Licensees must also assess the client's risk profile. The risk profile is based on factors such as the client's country of residence, the type of financial activity they are engaged in, and their source of funds.

Based on the client's risk profile, CMS Licensees must generate a KYC report. The KYC report summarizes the client's information and risk assessment.

Common Mistakes to Avoid

Here are some common mistakes to avoid when using C.A.M.S KYC:

• Not collecting all of the required information from clients
• Not verifying the information in client profiles using supporting documents
• Not screening clients against sanctions lists
• Not assessing clients' risk profiles
• Not generating KYC reports

Step-by-Step Approach

Here is a step-by-step approach to using C.A.M.S KYC:

1. Register with the C.A.M.S KYC platform.
2. Log in and create a client profile.
3. Collect and verify the information in the client profile using supporting documents.
4. Screen the client against sanctions lists.
5. Assess the client's risk profile.
6. Generate a KYC report.

Tips and Tricks

Here are some tips and tricks for using C.A.M.S KYC:

• Use the C.A.M.S KYC platform's built-in tools to automate the KYC process.
• Keep your client profiles up to date.
• Train your staff on the C.A.M.S KYC platform.
• Use a third-party KYC provider to supplement your KYC efforts.

Conclusion

C.A.M.S KYC is an essential tool for CMS Licensees in Kenya. It helps them to comply with regulatory requirements, protect their businesses from financial crime, and build trust with their clients.

Interesting Stories

Story 1:

A financial advisor was conducting a KYC on a new client. The client was a wealthy businessman with a complex financial history. The advisor used C.A.M.S KYC to screen the client against sanctions lists and found that the client was on a list of suspected terrorists. The advisor reported the client to the authorities and the client was arrested.

Lesson learned: C.A.M.S KYC can help CMS Licensees to identify and report suspicious clients.

Story 2:

A stockbroker was conducting a KYC on a new client. The client was a young woman who had recently inherited a large sum of money. The broker used C.A.M.S KYC to assess the client's risk profile and found that the client was at high risk of money laundering. The broker reported the client to the authorities and the client's money was frozen.

Lesson learned: C.A.M.S KYC can help CMS Licensees to identify and report high-risk clients.

Story 3:

A fund manager was conducting a KYC on a new client. The client was a large corporation with a global presence. The fund manager used C.A.M.S KYC to screen the client against sanctions lists and found that the client was on a list of companies that were suspected of human rights abuses. The fund manager refused to do business with the client.

Lesson learned: C.A.M.S KYC can help CMS Licensees to avoid doing business with unethical companies.

Useful Tables

Table 1: Benefits of C.A.M.S KYC

Table 2: C.A.M.S KYC Process

Table 3: Common Mistakes to Avoid When Using C.A.M.S KYC

Effective Strategies

Here are some effective strategies for using C.A.M.S KYC:

• Use the C.A.M.S KYC platform's built-in tools to automate the KYC process. This can help to save time and improve efficiency.
• Keep your client profiles up to date. This will ensure that you have the most accurate information about your clients and their financial activity.
• Train your staff on the C.A.M.S KYC platform. This will help to ensure that your staff is using the platform correctly and effectively.
• Use a third-party KYC provider to supplement your KYC efforts. This can help you to access additional data and expertise.