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KYC services not only facilitate businesses in tackling scams but also makes firms compliant with regulations. Thus, proving a great bet for businesses.
Nearly all businesses have seen an upsurge in identity fraud as a result of the COVID-19 pandemic. The implementation of Brexit is yet another major concern for businesses in the UK and the EU. The dramatic transformation of the corporate environment in recent years calls for efficient KYC services that can assist companies in fighting fraud. Not only this they looking for solutions that help them in complying with KYC compliance regulations and signing up legitimate clients. However, the COVID pandemic has generated a number of questions about KYC ID verification. To address these issues, let’s dive into the essential elements of KYC compliance.
KYC Verification at a Glance
KYC services were used to stop identity-related fraud even before the 2000s, however, after 9/11, everything changed. In addition, firms are increasingly exposed to legal, economic, and reputational problems as a result of digital scams, with unimaginable long-term damages. When it pertains to dealing with digital scams, the banking sector tops the list. Consequently, regulatory authorities have devised know your customer or KYC, laws to stop fraud and stop money laundering.
KYC standards refer to a set of regulations and procedures that assist companies in confirming the identity of new consumers. Knowing the customers helps businesses prevent fraud and avoid paying fines for non-compliance. Verifying a customer’s identity through the face and documentation verification is part of this process.
KYC Services – Helping Businesses to Tackle Fraud
During the pandemic, everyone has to stay at home, making the financial sector an ideal target for con artists looking to further their wicked agendas. According to a number of credible assessments, financial and identity crimes have dramatically increased globally compared to the year before the outbreak. Financial Action Task Force (FATF) and other regulating bodies recently announced new guidance for companies on how to tackle illicit activity.
The shift of corporate activities to digital platforms resulted in the rise of fraud. New recommendations state that digital identity verification can assist businesses in preventing fraud and providing their clients with services that are free from scams. Maintaining KYC documentation enables real-time product delivery to confirmed legitimate customers.
KYC Services: A Need for the Digital Era
Businesses must repeat the process frequently; it is not sufficient to validate clients just once. In other words, criminals are skilled at getting around identity verification protocols, hence offering continuing KYC process is critical in the modern world.
During the initial week of lockdown, fraudulent activities increased. Hence, a key requirement of KYC compliance is constant customer verification in order to prevent illicit actions. It can also stop chargebacks, identity theft, and a variety of other financial and identity scams.
KYC Services – Overcoming Challange of Client Onboarding
There are an absurd number of companies offering automated solutions nowadays. Digital enrollment is just one more procedure that is currently in demand. The world currently offers a wide range of automatic consumer enrollment choices, but not all of them can be trusted. Policymakers now view video KYC as the greatest and most trustworthy alternative for remote client onboarding after many trials and tribulations.
Having an online KYC program in place may greatly help businesses attract trusting clients, which will help them stop fraud and avoid going to court. Customers can benefit from a more individualized and immediate experience with video KYC. A live video conversation with a KYC expert ensures that the onboarding process finishes in no time with greater accuracy. In addition to making onboarding easier, KYC services improve enterprise security and help with high-risk profile assessment.
KYC Compliance – An Optimal Solution These Days
In these hard times, e-KYC services provide the greatest and most effective approach to combat fraud:
- Delivers extremely accurate solutions with a variety of features and distinctive qualities that make it impossible for fraudsters to evade identification verification.
- A trustworthy service that can spot fraud in real-time.
- Businesses can use KYC and AML solutions to avoid money laundering as well as terrorist financing.
- A method that can help companies adhere to rules.
- A simple solution that works on both web and mobile devices.
Final Thoughts
It is a common phenomenon that as time goes on, frauds will rise as imposters develop more sophisticated schemes. When considering the steadily expanding graph of frauds, the pandemic has only proven to be the cherry on top. Policymakers were alerted to the steadily rising number of forgeries. As a result, they developed new KYC compliance rules that all enterprises must follow in order to continue operating. In addition to helping businesses avoid fraud, KYC services can also help businesses give their customers a hassle-free online experience.
