The KYC process aims to uncover new customers’ true identities and determine if the source and/or use of their funds is legitimate. KYC also determines the amount of trust a financial company can assign a customer. Individuals and companies at high risk for money laundering will be monitored much more closely than other new clients.
Proper KYC procedures will also uncover the beneficial owners of a company, those individuals who really benefit from the company profits and who are not necessarily those listed on financial accounts or company mastheads. Their relative anonymity often causes difficulties for your company.
During the KYC process, your financial institution must gather and verify facts about the customer’s identity and those with authority to make decisions about the account. You must also create a risk profile and establish procedures for handling individual accounts.
AML compliance relies upon secure identity verification in order to identify high-risk customers. Financial institutions are not allowed to be passive when it comes to their clients. If you do not perform due diligence, your company will be held liable by the government.
Simplify KYC Processes With Ondato KYC Solutions
Following KYC processes is a requirement for financial services institutions, and failure to stay compliant can mean your company will face serious financial, criminal and reputational repercussions. However, AML and KYC procedures can complicate cultivating and maintaining satisfying business relationships with new customers. Clients still expect a seamless customer experience no matter the current AML climate.
Luckily, you meet your KYC obligations by providing great customer service. We offer advanced software with easy integration, false positive prevention and automatic customer identity verification. You can comply with the government’s strict money laundering and KYC regulations and avoid costly fines and reputational damage to your business.
KYC is an essential process that should not burden your business too much. Contact us today for more information on AML and KYC compliance tools.You and your customers will benefit from our knowledge.