Your Guide to KYC Compliance Made Easier: Step by Step

For the financial sector onboarding new clients are often a daunting task. Especially knowing when you are liable to undertake applicable due diligence measures. Where verifying the identities (KYC)of prospecting clients is a top priority to ensure compliance with anti-money laundering laws of domestic and international due diligence necessities.

KYC checks are not only mandatory at account opening but also conducted during the business relationship to ensure customer information remains up to date. Having so many potential directions with KYC, businesses demand ‘kyc compliance made easier” as the regulations are becoming increasingly complex to understand. FinTechs and financial firms are the most to suffer, pouring time and monetary resources to fuel a much-confused compliance initiative. So how can we clear the KYC thought process into clear actionable steps? By jotting down what we know and looking at the basics, in reference to what’s minimally required without unnecessary jargon.

Simplify Client On-boarding Into Actionable Steps

Step 1: Determine if your requirement is for automated KYC or manual KYC checks for new client onboarding.

Step 2: If operating/considering manual KYC checks, make sure that you thoroughly scrutinize the client’s PII information containing contact and financial information. Performing a full credit and background check of the company.

Step 3: Establish an information update period/schedule. Where current PII information is re-evaluated for any changes or modification to adequately keep client data in check.

OR

Step 1: Look up an automated and AI based, API-led solution that helps you perform KYC checks in as minimal steps as possible. Having a verification period of an industry-accepted minute or less. An API based solution also allows flexible integration and more matches to existing running solutions, in addition to convenient user access to data for smooth operations. The API-led solution should also provide omnichannel support through multiple SDKs

 

Are Financial Firms liable to Undergo KYC compliance?

Whether companies operate in the UK or elsewhere on the globe. It really does not matter, which industry you are in or what your use case is. The requirement to verify the identity of individuals is consistent and mandatory through and for all.  If you are a regulated firm, especially a financial service, KYC measures are a must to vet new clients, this is vital during new onboarding routines at account openings. This is a consequence of the global phenomenon of anti-money laundering laws that have become a mandatory business process to fulfill, in order to ensure compliance with global and local jurisdictional laws.  These regulations perceive individuals as a risk and define various categories accordingly to which applicable diligence measures are applied. This includes CDD, SDD, and EDD.

KYC compliance made easier is a top priority for many providers. However before shopping for your next best Identity Verification service provider. Consider where your business stands, what you need? How much diligence is required? How many resources are you willing to put in. Once these clear out and the above-mentioned steps pave a clear mindset. Can you move ahead with know your customer compliance through a reliable and dependable provider.

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