Know Your Customer and anti-money laundering measures
Keeping ING safe, secure and compliant continues to be a top priority. It’s part of who we are: integrity is at the heart of our Orange Code – the ING values and behaviours. As a gatekeeper to the financial system, we have a responsibility to protect it, our customers and society against financial and economic crimes such as money laundering, tax evasion and terrorism financing.
These crimes are universal and affect all of society. Stopping them is not something one bank can do alone. It’s a challenge for our entire industry. That’s why we work with other banks, law enforcement and public and private parties to identify and combat threats. Effectiveness is improved by shared intelligence and collaboration.
Know your customer (KYC) is the first step towards a safe and compliant bank. It ensures we only do business with people and companies we have verified as being trustworthy. This includes carrying out customer due diligence checks, updating customer files, screening customers and transactions, monitoring transactions and reporting suspicious activities.
We also carry out environmental and social assessments. These help us make transparent choices about who and what we finance, to limit the impact of our business activities on communities and the environment.
ING has around 4,000 people working on KYC related activities globally.
With activities in over 40 countries and 38 million customers, this is a sizeable operation that encompasses all customer segments in all ING business units.
How ING is improving its compliance and customer due diligence
Since 2017, ING has been working to improve and enhance compliance risk management. These efforts were stepped up in 2018 following ING’s settlement with the Dutch authorities after an investigation found serious shortcomings in the execution of customer due diligence and transaction monitoring requirements. ING is also working with Banca d’Italia to address shortcomings in AML processes in Italy.
KYC Enhancement Programme
We are continuously working to strengthen our execution of KYC and build a more sustainable KYC practice. One of the ways is through the global KYC Enhancement Programme (diagram below) which consists of three main elements:
- screening pre, post and past transactions and following the applicable reporting process should we identify any unusual activities
- enhancing customer due diligence files (documentation, data and identity verification)
- making structural improvements in five areas: compliance policies and risks, digital tooling, monitoring and screening, governance, and KYC knowledge and behaviour.
We are also bringing together all regulatory FEC developments and activities to provide wider, more holistic coverage on sanctions, transaction monitoring and screening.