KYC Onboarding | Streamline Customer Experience With AML Compliance

Almost every day, businesses are taking steps to go completely digital, availing themselves of intelligent technologies that make the work more accessible. It will help companies to trace advanced scammers and cyber attackers from all corners of the globe in real-time. It has been found that 76 thousand cyber-attack reports have been detected in Australia’s financial sector of businesses. Compared to previous years, it has increased above the old days. 

The growing number of reports filed as cybercrime has made companies very stringent about the customer experience and their credibility. This can only be made possible through effective KYC onboarding, which is very important to create a positive customer experience beginning with the organization. 

Now, from this article, get to understand how KYC helps an entire and arranged secure and transparent customer relationship with businesses.

What is KYC Onboarding?

KYC onboarding is their first step, which is the most critical element in keeping the organization safe and preventing possible risks. Verify the customer before onboarding them. It determines customers’ authenticity and comprehension of the customer before availing itself of such services. It helps safeguard businesses during financial transactions by preventing legal actions, money laundering, and terrorism financing. KYB onboarding ensures the customer has complied with all laws and regulations relevant to that verification of what the customers are.

Digital KYC Onboarding Effective Procedures

The KYC onboarding procedures involve several stages to assess customer risk before onboarding. It will happen before a company becomes familiar with the customer or avails them of its products and services. 

To begin, companies require information like the client’s name, DOB, residence, government-issued ID certificate, and bank details to verify customer identity.

After putting all documents in one place, the company needs to verify them, including the information’s correctness, to ascertain the claim that the customer owned the product or services, which shall be checked under AML-CFT. The company could, alternatively, ask the person to present a clear image to crossmatch against the National ID card for authentications. 

Automated KYC Onboarding: Importance to Customers

It has been very beneficial to follow the practices in KYC onboarding when vying to increase business revenue. KYC done manually is very strenuous and involves human error chances. Digital onboarding solutions come with costs, but the benefits to businesses outweigh all those inconveniences and guarantee end-to-end accuracy. This employee recognizes the customer’s profile in real-time and allows only the legitimate customers to be attached to the organization.  This, in turn, leads businesses to verify the high risks that such a client brings in and take appropriate action as easily and quick as possible.

KYC onboarding entails the different steps that companies have to follow to investigate and determine the possible risk. The procedure has to be completed before the customer can access the products and services provided by the company. 

At the onset, a company must require data such as the following to link to the jurisdiction within which it operates: Name, Address, Date of birth, Government ID proof, and bank details. All these documents are collected and verified for accuracy. Identify the owner of the product or service and the customer by comparing them with the requirements of anti-money laundering and combating the financing of terrorism. 

In turn, there is the option for businesses to just ask the individual to take a clear picture and crossmatch with the National ID card for accuracy. 

Automated KYC Onboarding – A Much Needed Approach for Customers? 

It is recommended that KYC onboarding practices be followed on the businesses’ parts in order to increase income generation for the company. Manual KYC is very tiring and comprises human errors. The digital onboarding system incurs costs but will eventually reap way better benefits for the businesses at a very high accuracy. This entire process thus becomes simplified with the artificial intelligence-enabled tool that identifies real-time customer profiles and hence allows only legitimate people to connect to the organization. 

This leads businesses to verify the very high risks that such a client brings in and take appropriate action as easily and quick as possible. 

What are the measures to Improve KYC onboarding for Customers?

The enhanced KYC onboarding process mandated risk assessment, which typically involved screening PEP lists, and checking individuals into sanctions lists; if it is on either of these lists, then it is termed a high-risk customer. However, when the person does not fall under any of these criminal lists and does not have a red flag association with those who do, then the organization can just give access and shake hands with them.

Summing Up

Almost every business industry requires a KYC onboarding process to guarantee the genuineness and purity of the customer. Onboarding is the most complicated and tended process for customers who want to get into the customer fold. Online KYC onboarding makes it quick and easy for an organization to meet compliance regulations while maximizing revenues. Intensive analysis of the customers usually exposes their involvement in financing terrorism and money laundering.