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KYC Onboarding | Streamline Customer Experience With AML Compliance

KYC Onboarding | Streamline – Customer Experience With AML Compliance


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Our business world is becoming digital day by day. More technologies make the organisation’s operations quick and easy but carry out a lot of advanced scammers and cyber attackers. In Australia, it is estimated that 76 thousand cyber-attack reports are detected in the financial sector of businesses. Compared to previous years, the number of cybercrime attacks has increased. The increase in cybercrime filed reports makes companies more strict in ensuring customer satisfaction and credibility. This can be possible with effective KYC onboarding that enhances the positive customer experience from the beginning with the organisation. In this article, understand how KYC helps businesses to make entire customer relationships secure and transparent.

What is KYC Onboarding?

KYC onboarding, which is seen as the first step, is the most important element in keeping the company safe and avoiding potential risks. This process refers to the customer diligence process to determine the authenticity and legitimacy of the customer before accepting them. This leads businesses to protect their financial transactions from legal repercussions and to fight challenges like money laundering and terrorism financing. KYB onboarding ensures the customer’s adherence to laws and regulations to verify that the customers are genuinely who they claim to be.

KYC Onboarding Effective Procedures

The KYC onboarding process comprises various steps that companies must follow to investigate and determine the potential risks. This process must be conducted before giving the customer access to the products and services provided by the business. 

As an initial start, companies need to require the data to link with the jurisdiction in which they operate. The following set of data, such as name, address, date of birth, government-issued ID certificate, and bank details. 

Once the required documents are collected, companies must verify them and confirm the accuracy of the data. Identify that the customer is the rightful owner of the product or services by checking the adherence to Anti-Money Laundering and Combating the Financing of Terrorism. As an alternative, businesses request the individual to provide a clear picture to crossmatch with the National ID card to determine accuracy.

Why is Automated KYC Onboarding Important for Customers?

It is recommended to follow the practices for KYC onboarding for businesses to grow their company’s revenue. The manual conduction of KYC is very hectic and contains human errors. The digital onboarding system does have costs, but businesses will get more benefits and achieve a high rate of accuracy. This process is streamlined with an artificial intelligence tool that identifies the customer’s profile in real time and only allows legitimate individuals to connect with the organisation. This leads businesses to verify the high risks associated with the client and take appropriate steps. 

How do you Enhance the KYC onboarding process for customers?

In the B2B sector, businesses must know about the person they interact with. In most cases, individuals represent their fake identities to hide their illicit activities. Companies should be clear that they are the same entity that they claim to be. To make the KYB onboarding process more enhanced, it is required to conduct the due diligence process that measures the possible risks associated with the customer.

In collaborating with customers, businesses are dealing with multiple clients to provide the product and services. With regard to this, the automated verification process utilised the digital platform and speeds up the onboarding process. It reduces the company’s costs as the process is online without any paperwork.

After the automated gathering and verification process, it is essential to check the client’s background history. This involves determining the customer’s financial transactions and source of income to determine whether they are generating white money or black. If any fraudulent activity is detected, the company is required to take appropriate steps and make a decision whether to work with them or not.

The enhanced KYC onboarding process required a risk assessment that typically involved screening the PEP lists and checking the individuals into the sanctions list. If the entity falls into any of these lists, then they are considered high-risk customers. But if they are not involved in these criminal lists and do not red flag association with them, then the organisation can give access and shake hands with them.

Wrapping Up

Companies in almost every industry must implement KYC onboarding measures to ensure the legitimacy and authenticity of the customer. Manual onboarding is a time-consuming process and not very convenient to convert customers. Online KYC onboarding helps the business to meet the compliance regulations in a very short time and has a high chance to increase revenue. This process analyzes the customers deeply and identifies the individuals who are engaged in money laundering and terrorism financing.


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