Listen to a Business English Dialogue about Know your customer
Freddie: Hey Skylar, have you ever heard of the “Know Your Customer” policy in banking?
Skylar: Hi Freddie! Yes, I have. It’s a policy where banks verify the identity of their customers and assess their risk profile to prevent fraud and money laundering.
Freddie: That’s right. It helps ensure that banks maintain accurate records of their customers’ identities and financial activities to comply with regulatory requirements.
Skylar: Exactly. By knowing their customers better, banks can detect suspicious activities and protect themselves and their customers from financial crimes.
Freddie: It’s an important practice to maintain the integrity of the banking system and safeguard against illicit activities.
Skylar: Absolutely. Plus, it builds trust between banks and their customers, knowing that their information is kept secure and their transactions are monitored for security purposes.
Freddie: Right. It’s a fundamental part of responsible banking and helps maintain transparency and accountability in financial transactions.
Skylar: And with the advancement of technology, banks are increasingly using digital tools to streamline the “Know Your Customer” process while ensuring data privacy and security.
Freddie: That’s true. Digital identity verification and biometric authentication are becoming more common, making the process more efficient and convenient for customers.
Skylar: Overall, the “Know Your Customer” policy plays a crucial role in maintaining the integrity and security of the financial system.
Freddie: Absolutely. It’s a proactive measure that benefits both banks and their customers in the long run.