Compliance and Disclosure from a KYC/AML Perspective

Advances in technology have made it easier than ever to transfer money between people and organizations. Unfortunately, they’ve also made it easier than ever to transfer illicit funds illegally around the world.

To prevent this from happening, banks and other financial institutions institute compliance programs that make sure they know their customers —that is, they can verify with certainty who their customers are when they’re asked to —and keep records of all of them their transactions.

These compliance and disclosure programs are often called Know Your Customer (KYC) or Anti-Money Laundering (AML).

Why Compliance & Disclosure Is Important

Most businesses have many important documents: contracts, loan agreements, and confidentiality agreements important to their operation.

Some also conduct business in ways requiring them to make compliance and disclosure requirements part of their daily operations. But what does compliance & disclosure mean?

Essentially it means for an organization to collect information about you (this is known as identity verification) so they can disclose who you are and whether or not you’re authorized for certain transactions.

This process is often called Know Your Customer (KYC) and Anti-Money Laundering (AML). Here are some benefits associated with compliance and disclosure.

  • Prevent Loss of Market Share

By identifying suspicious transactions through effective Know Your Customer (KYC) processes, you can reduce your risk of fraudulent activity. In addition, if you’re able to prevent these transactions before they occur, you’ll also be protecting yourself against business loss if it turns out that something was done incorrectly.

Keep in mind that many larger financial institutions are working on ways to circumvent AML with new regulations – if yours isn’t already involved with those efforts, you could miss opportunities for growth because you failed to act when competitors were.

  • Build Customer Confidence

Compliant companies go beyond basic identity verification to ensure that customers are who they say they are. If there’s any question about whether or not your customer is who they claim to be, you must comply with further regulations by collecting more information.

By collecting additional information, you can help protect yourself against fraud and money laundering charges if there is any suspicion.

  • Protect Reputation

Identity verification policies help your company avoid lawsuits, which can be extremely costly. For example, suppose a customer feels that they’ve been treated unfairly. In cases like this, they may seek compensation through litigation – and these days, it’s easier than ever to find an attorney who is willing to work on contingency.

There are also reputational risks when you fail to comply with regulatory requirements; allowing money laundering or fraud to occur through your services is one way to damage your reputation.

  • Maintain Transparency

By following AML & KYC laws, your company can demonstrate that you are open and transparent with all parties.

It may even be illegal not to follow these rules in some cases. If there is any question about whether or not your company has done everything possible to ensure compliance, you could face legal repercussions.

At AcuityTec, we’ve created a solution for digital identity verification, making it possible to complete e-KYC (Know Your Customer) processes in just minutes. It uses both on-device and remote biometrics through Acuity’s proprietary document verification solutions.

Digital Identity Verification by AcuityTec

It is well known that it is important to verify your customers digitally, especially if you are in financial services. This is because so many fraud cases have happened by simply taking someone’s word for who they are.

With digital identity verification, you do not have to trust your customer anymore – you can easily check their identity yourself.

Now there is no excuse to be fooled into handing over your hard-earned money to an imposter pretending to be something or someone else. AcuityTec takes care of IDV – which stands for Identity Verification in compliance with Anti-Money Laundering (AML) legislation worldwide.

Contact Us: We Are Ready When You Are

AcuityTec is an experienced Identity Verification Provider (Identity Verification Service (IVS)) who’s worked with hundreds of e-commerce businesses. We use cutting-edge technology to streamline your compliance process, allowing you to focus on doing what you do best.

We’re experts in assisting companies through their identity verification processes, ensuring that compliance regulations are followed at all times. Our services will give peace of mind while we take care of your AML / KYC requirements so you can be compliant without sacrificing efficiency.

Get to know more about our KYC and AML Compliance services below:

What Are the Benefits of a KYC Compliance Check?

  • Seamless Onboarding Process

With an enhanced digital ID verification method, the onboarding process of your customers or employees becomes easy.

  • Operational Efficiency

When an automated system is used, the operational difficulty of managing KYC procedures reduces dramatically.

  • Minimizes Risk

AcuityTec helps to minimize the risk of human error and maintain accuracy throughout the collected information.

  • Get our KYC Solution Brochure

Learn all about automation and optimization for user data validation in the KYC process.

Taking AML Compliance from Endless to Painless

AcuityTec provides comprehensive coverage of global AML risk data sources including:

• Sanction lists: Checks performed on over 4,600 lists available domestically and internationally such as OFAC, UN, EU, DFAT, PEP, HM Treasury, and many more.

• Law enforcement lists: Interpol, country specific government and state agencies, and police forces.

• Governing regulatory bodies: Financial and securities commissions from around the world.

Our AML Watchlist Services also help you comply with domestic and international Anti-Money Laundering (AML), Counter Terrorist Financing (CTF), and sanctions enforcement regulations.

Sign up for a free demo today to learn more about our ID verification solution.

For more information about our solutions and services, visit our website or chat with our Risk Management professionals: www.acuitytec.com, email us at info@acuitytec.com or call us at +1-866-504-2170 for more information.

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