KYC procedures established by foreign banks include all the necessary actions to make sure that a potential client has a decent reputation, his wealth is absolutely legal, and the nature of future or current transactions is clear and transparent. Therefore, in order to limit and prevent fraud, foreign banks are simply required to comply with KYC rules and anti-money laundering regulations. In addition, banks are responsible for KYC compliance. In case of non-compliance, serious fines can be applied. In the last 10 years alone, banks in Europe, the United States and the Middle East have had to pay fines totaling $ 26 billion, all for non-compliance with KYC and AML policies. And there is even nothing to say about the scale of the damage done to the reputation of financial institutions, because it is impossible to assess them in monetary terms. There are many examples of fines, bank closures and license revocations. For example, Deutsche Bank received a fine of $ 630 million and a little later another $ 41 million, BNP Paribas was fined $ 10 million, Signet Bank in Latvia was fined € 906,000, and BSI Bank in Singapore lost its license altogether. All of these fines were issued for the implementation of ineffective anti-money laundering policies and poor customer identification. This is why the KYC process is so important. And that's why foreign banks began to study the identity of the client more thoroughly, because every mistake made can lead to fines or license revocation. Therefore, before opening an account in a foreign bank, you must fulfill all the requirements associated with this process. More here - https://en.wikipedia.org/wiki/Know_your_customer
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