Knowing your customer and Money laundering

On the 17th of Jan’2018 , the BBA department organized a guest lecture for the students of BBA-2 & 6 by Ms.Nonika Arora-“Client Engagement Manager” with Indusind Bank. Speaking on the subject of money laundering and assessment of customers, the speaker elaborated on  the process of customer appraisal  and document evaluation followed by the banks  before granting of loans and credits to them.

A thorough examination of the forms and documents , she said, was by itself enough to expose frauds and suspicious transactions across a customer’s bank account. Continuing with the talk, she explained the concept of money laundering and the steps taken curb it. Money laundering, she maintained ,was a process that involved three steps-placement, layering and integration.While placement, which is the first step in money laundering, involves injecting illegitimate funds into the legal financial system, the second step –layering –distances the money  from its illegal source through layers of transactions; the process ends with integration –i.e.,conversion of black money into white. Simply put, it is the process of hiding, moving and investment of illegal funds.

 

The lecture ended with the speaker advising the students to know thoroughly their customers and their work engagements if they decided to choose banking as their career in future.

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