> Anecdote #1: I can walk into the local branch of my bank - where all the staff know me - and withdraw money from my account without showing any form of ID, te

> Anecdote #1: I can walk into the local branch of my bank - where all the staff know me - and withdraw money from my account without showing any form of ID, telling them my account number, or even stating my name. They know me, I just have to sign the form. They shouldn't do that. I am not saying they don't but they shouldn't. And in this scenario, you've already established your real identity over time in order to open the account and regularly withdraw or deposit funds. You didn't build this relationship in a day without any evidence of who you are. And then you are physically showing up, which is proof that you are the person they have been dealing with over the course of the relationship. You could have lied initially and established a lie over time, but that stuff happens in the KYC process as well. KYC isn't a perfect system and it's completely possible to 'lie'. > Is that in the KYC regulations, or even the bank's SOPs? I would bet that it is in the Bank SOPs to NOT do what you described. But, as a person that does a lot of compliance, it's inevitable that people will ignore SOPs or policy to some extent.