know-your-customer rule

Rule 405

A New York Stock Exchange rule requiring investment advisers to only make or recommend investments for their clients' accounts that a "prudent person" would make. This means that investment advisers are not allowed to make investments they believe will lose money for the client. It does not require that the investment adviser always make correct decisions; it merely requires him/her to make decisions that will be generally accepted as sound for someone of average intelligence who seeks to do what is in the client's best interests as the client defines them. It is an example of a suitability rule. See also: Prudent-Person Rule.

know-your-customer rule

A requirement that brokers understand the financial needs and circumstances of a customer before providing investment advice.
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How to avoid being classified as 'suspicious,' of course, means some kind of enhanced know-your-customer rule not only for Solaire, but for the rest of the booming Philippine casino industry.
He noted that other entities were not as stringent in terms of know-your-customer rule and were not bound to strict documentation and auditing requirements slapped on banks.
In general, the branch is responsible for KYC, she said, referring to the so-called know-your-customer rule that is standard practice among banks to deter money-laundering activities.
In general, the branch is responsible for KYC, she said, referring to the so-called know-your-customer rule that has been standard practice among banks to deter money laundering activities.
Foremost among these is whether the banking industry's know-your-customer rule was followed to the letter.
She allegedly allowed the transfer of the $81 million, stolen by computer hackers from the US account of Bank of Bangladesh, into five accounts in her branch without thorough scrutiny, a violation of the bank's know-your-customer rule.
The bank has issued a show-cause order to the branch manager, who was accused of having been lax with the know-your-customer rule when she allowed these people to open bank accounts.
The branch manager's representative, meanwhile, said she was now afraid that she would be included by the Bangko Sentral ng Pilipinas in its so-called orange list of bankers found to have committed violations of important banking regulations, such as the know-your-customer rule under the Anti-Money Laundering Act.
What regulators are now looking at is whether the financial institutions involved followed the know-your-customer rule in handling these funds, the source said.
As a substantial proportion of customer relationships are with nonresidents, adherence to know-your-customer rules is an area of focus for efforts to limit illicit money from foreign criminal activity.
Atlas, which is actively promoting its strict compliance with anti-money-laundering and know-your-customer rules, had set up a banking relationship in Singapore and planned to provide co-located trading operations there as well as in Hong Kong and New York.