AML- KYC (anti-money Laundering- know your customer) - TD Canada Trust Retail Banking - Assignment Example

The improvement of the KYC/AML policies would enable the TD Bank to better understand its customers, the principals underlying customers who play the agent role and their financial dealings which can assist mutual fund to control its risks vigilantly, as well as understanding the beneficial owners in instances of entities that are non individual. In order to improve the TB Bank (KYC/AML) Know Your Customer and Anti-Money Laundering policy and procedure emphasizes should be directed on the general doctrines undertaken by the bank to establish an effective process of record keeping, reporting, internal control, and customer identification in an effort to check money laundering related operations, or financial terrorism.

The criteria for customer acceptance policy in TD Bank should be tightened in the sense that accounts must not be opened in a factious or anonymous entry or name; customers should only be accepted after identity verification; the customers must as a matter of caution, be classified in different risk categories, with each having a criteria of acceptance; new customers identity must be scrutinized to ensure that it does not have any criminal record or banned entries. However the implementation of customer acceptance policy should not be so stringent such that it obstructs banking services to the public in general, and those who are socially or financially underprivileged in particular.

The TD Bank in an effort to improve its KYC/AML policies must adhere strictly to the rules of customer identification procedure. This should involve identification and verification of customers’ identity through independent and reliable source documents, information or data. To improve this policy, the bank must be satisfied that the potential customer is actually who he claims to be. In addition, TD bank must ensure that enough information is obtained on the purpose, identity, and