KYC/AML Providers Becoming Center of Attention for Businesses
The relevance of automated KYC/AML providers to verify the identity of customers
KYC/AML providers are providing compliance services to global organizations through digital document verification and face recognition tools. Although, it addresses many ambiguities of businesses and encompasses various fields.
The business can be sure of a smooth, quick, and secure customer onboarding process. Among other queries, these solutions adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) rules; and eliminate identity fraud.
As there is a wide variety of risks the finance industry is exposed to, thus overlooking the KYC/AML compliance issues becomes too important to ignore. Digital service providers present an efficient solution for the protection of organizations against ID theft and fraud.
What is a KYC/AML Provider?
KYC/AML providers are third-party services that ensure regulatory compliance of businesses employing them. Their services encompass remote ID authentication, age verification, and AML screening of customers of a certain institution.
Businesses that these services cover include online stores, retail services, healthcare providers, travel agencies, etc. This is because these organizations are required to adhere to CDD procedures. Also, these organizations also cover EDD for known entities like PEPs.
What Makes KYC/AML Providers so Hard to Ignore?
KYC/AML screening solutions are here to carry out the authentication process of the client's identity as well as to adhere to compliance procedures across the world.
In the event that an end-user of a company is linked with wrongdoings like smuggling, drug trafficking, and related crimes, then the said business will become liable for not carrying out appropriate KYC/AML checks. It is the duty of the organizations to devise a system from which the crooks can't find any passage. In the event that they fail in impeding criminal advances, the blame will be solely borne by that business.
The KYC/AML screening process is carried out carefully so that to cover every person and organization under one solution. Additionally, the compliance watchdogs tasked with curbing monetary crimes are essentially observing the organizations for KYC/AML procedures.
In the event that they fail to comply, purposely or accidentally, the organizations are hit with stringent punishments. Hence, the course for organizations is to employ the services of KYCAML providers.
The Trouble with Previous KYC/AML Practices
Now, it has become self-explanatory that businesses are in dire need of a KYC/AML solution to carry out the user onboarding process. So, let’s delve into a brief account of varying types of KYC/AML providers. The concept of KYC/AML providers is not a novel one.
The manual processes were either undertaken by third-party compliance investigators hired by the organization or conducted by their in-house team.
Moreover, even the third-party providers were inefficient as they were using rudimentary investigative tools, and they did not provide online services. However, owing to the technological advancements, there should be no ambiguity in making a choice between manual or digital solutions.
Because technological advancements have reached a level that has assisted the creation of AI-powered ID verification solutions. Therefore, the automated KYC/AML providers are here to stay and claim their place in the industry.
Taking an Investigative Look at Digital KYC/AML Providers
When comparing the two, we find that the manual processes have nothing on the digital providers. It would not be wrong to say that it is not a fair comparison as the automated solutions are way better in every way.
- The automated solutions are better in the detection of different document patterns like signatures, OVI, etc.
- The remote KYC/AML providers have an accuracy rate of a whopping 98.7%.
- Human-made errors are practically eliminated by digital solutions.
- They save time and costs significantly.
- The tiring practice of waiting in line for hours is removed.
- It is quite suitable for the CoronaVirus environment.
How to Choose the Most Reliable Solution?
If an organization wants to acquire the services of Know Your Customer (KYC) and Anti-Money Laundering (AML) solutions, then they should focus on their priorities. While choosing from a long list of digital KYC/AML services, one gets confused in choosing the best.
However, if you have made a checklist based on your most pressing needs, then the selection won’t be a problem. Whatever the solution, they must ensure your compliance with KYC/AML regulations.
Furthermore, if you are still having doubts, then worry not because we have devised a list of features that one should look for in a provider. These services are outlined below:
- The third-party providers must incorporate biometric technologies like face recognition in their package.
- They are capable of detecting efficient document forgery advances.
- They must use OCR for data extraction from e-documents.