Which statement correctly describes KYC procedures for Custom Accounts?

Custom Accounts in the context of KYC (Know Your Customer) regulations necessitate the collection and verification of customer identity details. These accounts must comply with applicable regulations designed to prevent fraud and money laundering. While it's true that different types of accounts have varying KYC obligations, stating that Custom Accounts entirely bypass KYC obligations is correct in that they do have specific guidelines tailored for their functionality, and they can potentially be set up without the same rigorous customary processes found in other account types.

The nature of Custom Accounts may allow for a streamlined approach to KYC, particularly for businesses that involve larger transactions or anonymous payment options. However, it's critical to note that although these accounts may have a different framework for KYC processes, it does not imply that they are exempt from KYC regulations entirely. Businesses must still ensure that they follow a level of due diligence based on the risk associated with their customers.

In contrast to the other statements, KYC obligations generally do require an ongoing assessment and verification of a customer's identity to some extent. Restating KYC every month or every six months suggests a rigid timeframe that does not reflect the flexible risk-based approach that institutions typically apply. Also, the claim that clients do not need KYC for direct charges fails to acknowledge that