Banks are required by law to verify who their customers are and understand how accounts are used. Here is what you may be asked for, why it matters and how it helps protect you and the financial system.
Opening an account, sending money abroad or making a large deposit can involve questions and paperwork that some customers find unexpected. These checks are not a sign that a bank distrusts its customers. They are legal requirements designed to protect customers, banks and the wider financial system from fraud, money laundering and the financing of terrorism.
What “know your customer” means
Know your customer, often shortened to KYC, describes the steps a bank takes to confirm a customer’s identity and to understand the nature of the business it does with that customer. KYC forms part of a wider framework for anti-money laundering and combating the financing of terrorism, known as AML/CFT.
In The Gambia, these obligations are set out in the Anti-Money Laundering and Combating of Terrorist Financing Act 2012 and related requirements. Banks must follow them as a condition of operating, and their compliance is subject to supervision.
What you may be asked for
Requirements vary with the type of customer, account and transaction, but you may be asked for:
- A valid form of identification.
- Proof of your address.
- Information about your occupation or business.
- The purpose of the account and how you expect to use it.
- The source of funds for certain deposits or transactions.
- For businesses, registration documents and details of owners and those authorised to act on the account.
Why it matters
It protects you. Verifying identity makes it harder for someone to open an account in your name or to take control of an existing one.
It protects the financial system. Understanding how accounts are used helps banks identify activity that may be linked to crime and keep criminal money out of the banking system.
It supports international banking links. Strong safeguards help maintain the confidence of banks abroad, which matters for trade, remittances and international payments.
Checks continue after you open an account
KYC is not a one-off exercise. Your bank may ask you to update your identification or contact details from time to time, or may ask about a transaction that is unusual for your account. Answering promptly helps avoid delays to your payments.
Your information
Information collected for these purposes should be kept confidential and used only for proper purposes. If you are unsure why a particular document or detail is needed, ask your bank to explain.
Practical tips
- Bring valid identification whenever you visit a branch to open an account or carry out a significant transaction.
- Keep your contact details up to date with your bank.
- If you do not have a particular document, ask your bank what alternatives it can accept.
- Be wary of anyone outside your bank who asks you to send identity documents by message or email; give them only through your bank’s official channels.