ACI Dealing Certificate (#391)

The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as “Know Your Customer”. Which of the following are correct?

“Know Your Customer” rules cannot be applied online and banks will have to rely instead on new safeguards such as third-party authentication.
“Know Your Customer” rules apply only to retail customers and are therefore irrelevant to currency trading.
In practice, banks can avoid “Know Your Customer” rules by limiting online deal size to EUR 100,000.00 or equivalent.
No trading should be carried out without first identifying and setting up the counterparty; this includes “Know Your Customer” procedures.