- January 17, 2018
- Posted by: Jenny Cortes
- Category: Know Your Customer (KYC)
What is KYC?
KYC is the due diligence that all businesses are expected to carry out on their customers. The aim is to prevent businesses from being used for illicit activity such as money laundering, terrorist financing, or fraudulent transactions.
What does KYC involve?
KYC involves two main phases. Firstly, when a customer registers for the first time, a business is expected to collect some basic personal details such as name, address, date of birth, and contact details. The business must also maintain an up-to-date record of these details in case there is any change e.g. the customer moves to a new address. Once this information has been gathered, the second phase involves assigning each customer a perceived level of risk and an expectation of the value and volume of their transactions. The business is then expected to monitor the customer’s actual levels of transaction against these predetermined levels so any unusual transactions will be flagged.
Why is KYC important for the industry?
KYC is important for any money transmitter potential. The anonymous nature of online transactions means that it is very susceptible to illegal transactions, for example illicit activity. It is in the best interests of businesses to incorporate KYC practices into their processes. Otherwise they risk their business’ integrity and profitability.
AcuityTec’s All-In-One Risk Management Solution helps your business automate and optimize the user data validation in the KYC process:
- Global Identity Verification
- Date of Birth and Age Verification
- Address to Name Validation
- Physical Address Validation
- PhoneID Verification
- Email/Domain Verification
- Geo-Location Verification and Proxy Piercing
- Knowledge Base Authentication
- DeviceID Authentication
- Bank Account Verification
- Bank Identification Numbers (BIN) Verification
- 4-Digit PIN Authentication via voice call or SMS
We enable merchants to verify users at account creation, login, KYC checkpoints and transaction level; we evaluate customer patterns, behaviours and transactions risk in real-time.
Our tiered scoring system and evolving risk management is tailored to your business size and requirements, to fit your unique payment processing needs and contribute to your overall success.
For more information about our services, visit our website and chat with our Risk Management professionals: www.acuitytec.com or email us at firstname.lastname@example.org.