KYC Information

Even if you’re not legally obligated to carry out KYC checks, knowing more about your customers can help you manage risk and keep out unwanted customers. Demonstrating KYC compliance also helps to build trust by showing that you’re going above and beyond what’s expected of you.

KYC regulations are ever-expanding. So, if you believe your market is likely to become regulated in the future, getting a head start on it now could save your business a painful retrofitting process.

To ensure KYC compliance, you’ll need to put adequate internal controls and monitoring systems in place to flag money laundering threats as they happen. You’ll also need to keep records of customer due diligence activity for at least five years after a transaction takes places or the relationship ends.

It is best practice to document your KYC and AML policy, controls and procedures for preventing money laundering, with details of the key employees who are responsible for managing this.

With so many regulations and so much at risk, it can be difficult to understand which ones apply to you when developing a customer onboarding process. At the same time, it can also be challenging to get the balance right between impressing new customers with a seamless onboarding experience, while at the same time giving them confidence that their money and assets will be safe and secure.

The challenge many organizations face is that KYC processes often increase the time it takes to onboard new customers and this can negatively impact their experience. Often, staff will be expected to manually input information into a system or manually validate it every time. Not only is this immensely time-consuming, but it is also prone to human errors.

Automation can help.Automating KYC and AML checks can reduce your reliance on paper-based checks, while also removing potential risks and staff costs. Organizations can automate key processes using robots that will reliably and automatically carry out data-driven tasks.