When financial institutions establish a new relationship with a client, it is critical that they can verify the authenticity of the client’s identity. The purpose of this warrant is to verify the authenticity of an individual’s identity. Due to the increasingly interconnected global financial system, banks need to quickly verify customer information to ensure that they are not funding criminal activity.
Acquiring the right data to verify client identities and tie them to their real-world assets can be difficult. To combat criminal behavior -money laundering or the financing of criminal organizations- banks and financial institutions have been using increasingly restrictive policies when verifying the identities of their clients.
To cope with regulatory requirements, it’s necessary to efficiently manage the KYC processes. In summary, these elements determine efficient KYC management for a bank: Customer Identification, Customer Due Diligence, Ongoing Monitoring.
The Customer Identification Program requires that financial institutions implement policies, procedures, and processes to have a reasonable belief that all customers are whom they say they are.
The Customer Due Diligence provides various facts about a customer that allows the organization to assess the risk to the business by prohibiting knowing or willfully ignoring terrorist financing and money laundering.
The essence of KYC is to protect organizations by enabling them to identify and verify people who are applying for products or services; thus, minimizing the risk of fraud. To ensure safety, each customer’s transaction history is closely monitored to identify any atypical transactions of the customer’s profile.
According to a Forbes article written by the CEO of Jumio, Robert Prigge, regulators across the US, Europe, APAC, and the Middle East have levied nearly $26 billion in financial penalties against financial institutions for AML, KYC, and other violations over the past decade, which $24 billion was imposed in the US.
Compliance is key. It is no longer an option but rather a business imperative; organizations should be concerned with making profits and complying with the law.
CrimeCheck for Banks and Financial Institutions
Banks must remember that their responsibility is to provide safeguards against illicit cash flows, and they also want to make a profit. With criminals’ methods getting more sophisticated, banks must keep up.
Our CrimeCheck software is the only one on the market that is specifically designed for banks and other financial institutions. This means it’s specifically designed to meet your unique needs. We utilize court records and FIR’s, match and associate customer identity documents with a unique customer identification number. In other words, we make the whole process of KYC automation more efficient and secure for financial institutions.
If you would like to give this product a spin, feel free to contact us.