Know your customers (KYC) is the process by which businesses identify and verify diverse customers and evaluate the probable risks of illegal transactions during business relationships. This makes it possible to detect and prevent fraud in financial transactions quickly and entails a legal obligation for financial institutions, including banks and non-bank financial corporations (NBFC).
There are currently two ways in which KYC information can be obtained. Using traditional methods where an officer goes to the customer to collect documents and verify their identity. The second approach is to use digital methods combined with the latest detection for technology to do the same. In which the identity and address of the consumer are verified electronically and this method is called an e-KYC solution.
In this article, we’ll talk about the checklist that will make your life a lot more comfortable as far as the KYC software solution is concerned.
1. Why is the KYC Process Required?
KYC and anti-money laundering (AML) are part of a broader category known as “customer due diligence”. In hopes of tackling international money laundering and terrorism financing, regulators have become increasingly active in this space of advancing Mobile money solution.
As a business, you are obliged to comply with the mountain of legislation and thus have to verify the identity of each client. KYC protects the fortunes of your company by protecting your business from fraudsters. Having a consistent KYC program automatically makes the business safer and more reliable.
2. Structure Of KYC Process
Once you set your goal to implement the KYC software solution into your platform, it is time to decide on the features and flow of KYC. Basis ID’s compliance officers will help you to build the process for your KYC software and AML compliance program.
Structuring your KYC flow allows you to understand a user’s integration, as well as data management and reporting.
- Do customers go through an identity verification process before using the service? Or can they access limited functions before KYC compliance?
- Is KYC just a follow-up process, or is it a step in unlocking various platform features?
- What data should your customers provide?
- Is there a second chance for users if they fail the verification?
- What does ongoing monitoring look like?
- Should reporting to ities be automated or manual?
There are many more questions to consider, and it is better to map the entire flow to understand what your KYC process looks like.
3. Connect a KYC Service Provider
Once your KYC flow structure has been determined, connect to a KYC solution provider. You can opt forTweet