Know your customer (KYC) is the process of a business, identifying and verifying the identity of its clients. When a Member approaches DCCC and wishes to participate on it, the Member is asked to provide specific documentation to enable DCCC to identify, verify, and maintain records regarding a Member’s business’ structure, as well as key personnel who control and own the business. This is known as KYC.
DGCX Group has a KYC policy that covers due diligence carried out by DCCC, on behalf of its Members and parties related to them, in accordance with the DCCC Clearing Rules and applicable SCA regulations. The policy also contains an overview of DCCC and its Members obligations in respect of KYC. On an ongoing basis, KYC information provided by Members is re-assessed, and Members are requested to assist DCCC in updating KYC information, (at a minimum annually), and where necessary. The KYC framework, applied at DGCX Group, enables DCCC to get to know its Members business and build a sustainable relationship by helping to protect against the potential risks of financial crime. DCCC follows best practice global industry standards, including following the globally recognized Financial Action Task Force (FATF) guidelines for customer identification and record keeping.
DCCC Clearing Rules B.4.3(e), respectively, draws reference to these requirements and require Members having clearing rights to adhere to these rules while carrying out the necessary due diligence of its Clients. In particular, these obligations include:
Documents are to be kept for minimum period of 10 years.
On closed accounts, documents are to be kept for minimum 10 years.
Documents are to be stored at safe location.
Documents are to be seen in original.
Documents of foreign Clients are to be notarized by a legal officer or government officer.
Client profiles are to be continuously updated.
DGCX Group and DCCC strictly adheres to applicable regulations in respect of KYC.
Mandatory Regulatory Requirements:
Outlines the minimum standards for capturing background information about the Client.
Guidelines on what the KYC process involves and KYC supporting documents to be obtained at the time of on boarding new clients.