RepGuardian

The concept of know your customer, refers to business practices wherein thorough investigations are complete on prospective customers, clients and business associates.  This not only entails becoming educated on the practices, policies and history of future partners, but also knowing just what they are intending to use the goods and services for which one provides.  In the financial realm, institutions are required by law to know with home they are conducting transactions.

Should a customer from either a foreign country, or living within the country, wish to deposit large amounts of cash, they employees of the bank must investigate, and if they do perhaps suspect and sort of criminal activity, be it drug trafficking or corruption they are required to fill out a suspicious activity report.  Not doing so means that they will be prosecuted along with the customer, should the customer be found guilty of said criminal activity.  They will be fined and perhaps charged even if the customer is not found guilty of anything suspicious or criminal, simply because this report is required by law.

Likewise, when this is concerned with a company that provides goods instead of services, they are required should they suspect that the one purchasing those goods are using them in ways to commit acts of terrorism.  There are various ways a company can go about discovering criminal behavior.  () Should a product require installment, but the customer declines, that is suspicious activity.  If a customer makes a business purchase for items not related to the type of business they are usually involved in, that is suspicious behavior.

On a local level this is similar to companies such as Home Depot and paint stores deciding to put aerosol spray paint under lock and key, sometimes refusing to sell the paint to minors.  After it was noted many times that some youth were using the paint for purposes of drug induced highs, and not for paint the walls, the companies locked up the paint in order to avoid prosecution for contributing to the damage that the kids were doing to themselves, as well as being concerned ethically about selling to kids that were exhibiting suspicious behavior.  In a world wherein some individuals are capable of committing incredible acts of destruction, this is very important on the local level, as well as necessary on the global level.

Related posts:

1. The Ripoff Report and Online Reputation Management
2. Update your home
3. Japanese students learn importance of business communication
4. Combating Terrorist Financing
5. FCPA, Foreign Corrupt Practices Act and Ensuring Ethical Business Conduct