KYC Compliance
KYC Compliance: Upholding Trust, Protecting Integrity
KYC (Know Your Customer) compliance service is a process through which businesses verify the identity of their customers and assess the potential risks involved in doing business with them. This is typically done to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as to prevent fraud and other financial crimes.
Stay compliant
Compliance with KYC regulations is a must for the financial industry but also for many other branches of business. KYC stands for Know Your Customer and it refers to the process of verifying the identity of potential customers.
Leverage your security with effective KYC process
Effective KYC processes are the foundation of successful compliance or risk management programs. In recent years the demands for meeting KYC regulations are growing. Stricter regulatory requirements come into force with anti-money laundering (AML) processes in mind.
Avoid fines
KYC compliance services can help businesses to avoid fines and penalties related to non-compliance with AML and CTF regulations. These regulations are designed to prevent money laundering, terrorist financing, and other financial crimes, and failure to comply with them can result in significant fines and reputational damage.
What is KYC Compliance?
Anti-Money Laundering (AML) is a broad term containing the legal framework of legislation and regulation whose aim is to – as the name suggests – counter the risk of dirty money and terrorism financing. Such a law can only be met with a proper Know Your Customer (KYC) procedure, as it is the base of the AML process and an inherent step towards safety and compliance.
At the core, you need to fully understand who you are doing business with – including verifying the customer’s identity, as well as monitoring and analyzing their activities – to reduce the risk of financial crime and the threat of terrorism and abide by the law. Combining KYC verification with AML screening assures that your business is risk-free. However, the requirements have been getting stricter in recent years, making it hard to keep up with them.
What are the main risks of the lack of KYC procedures?
Money laundering
The end-user submits details, including name and date of birth, through an online form provided by the operator. Depending on the industry, some other personal information may be required.
Terrorist financing
Lack of KYC procedures can make it easier for terrorist groups to finance
their activities through the financial system by disguising
the source of their funds
Fraud
Without proper KYC procedures, fraudsters can impersonate legitimate customers and open accounts or perform transactions under false pretenses, leading to financial losses for businesses and individuals.
Regulatory risk
Lack of compliance with KYC regulations can lead to regulatory sanctions, fines, and legal action, which can be costly and harm the long-term viability of a business.
How to choose the right KYC & AML compliance service?
It is not a secret that the appropriate and reliable KYC & AML solutions provider is vital to keep a financial institution safe and sound financially and reputationally. It is also a matter of abiding by the law, which is absolutely crucial to make your business operate without any complications. So what factors should you consider when choosing this type of service? At Fully-Verified, we believe that it needs to be:
Outsourcing the AML/KYC processes means you present your expectations and requirements and get professional help on your own platform or the provider’s platform alongside smooth integration with your business framework – it is simple like that.
The assistance in complying in such a fast-changing environment should be delivered in the highest quality and accordance with the newest updates.
Because we know in-house verification service is relatively costly and possible to maintain only by companies with resources to hire experts etc.
Offering enhanced compliance while keeping your business away from high-risk entities – or making it possible to deal with them with required caution.
Main Elements of KYC Compliance
KYC process outlines various verification methods including document verification, face verification, address verification, PEP and sanction list monitoring, and more. These methods help companies understand their customers better as well as know the risks associated with them. The process of KYC verification consists of a few steps:
Data Collection
Institutions begin their KYC procedures by collecting basic data and information about their customers, often by using electronic identity verification. The user fills out a form with information such as first and last name, nationality, document number, or date of birth. The information required may vary depending on the institution that is performing the KYC process.
Verification
Once basic customer data is collected the user presents an identity document to compare the data from the form with the information on the document. Authenticity checks are performed on the document to make sure it is a legitimate government-issued document. The user’s face is compared with the photo on the document to make sure that there is no identity theft and that the user is who they say they are. Additional documents like proof of address are verified.
Risk assessment
When it comes to assessing the risk involved with the customers’ onboarding there are a few factors that are taken into consideration. The company checks the results of the identity verification and the results of the PEP and sanction lists check, to make sure that the potential new user is not on any monitoring list or is not a politically exposed person. All of that information creates a users profile that will determine the users’ risk assessment, the scope of future cooperation, and the level of monitoring. Depending on customers’ risk they may be subjected to either simple Customer Due Diligence or Enhanced Due Diligence.
Auto-Verify
Verify users from all over the world in matter of seconds
Onboard faster, safer, and smarter with our KYC verification service. With pass rate improvements of up to 26% and cost reductions of up to 46%, our solution integrates seamlessly in just a few hours to prevent even the most advanced fraud tactics. Say goodbye to long wait times and hello to secure onboarding in under 10 seconds.
Live-Verify
A banking-grade users verification
Stay compliant and secure with our live verification service backed by cutting-edge technology, including document and face recognition, AI, and Machine Learning. Live-Verify offers customisable verification scenarios to meet your unique needs. Say goodbye to outdated, time-consuming processes and hello to streamlined, secure onboarding that exceeds the highest levels of regulations.
Self-Verify
The Ultimate KYC Solution with Full Live Video Recording
Unlike our competitors who rely on partial recordings or photos sent by customers, we offer a live video recording of the entire process from start to finish. With this feature, you can witness every step of the process and have indisputable evidence for future reference.
Fully-Verified was created as answer to its founders collectively losing over $150 000 to various types of fraud in their eCommerce businesses.
