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Why KYC Matters in the Digital Age

Why KYC Matters in the Digital Age

by | Oct 30, 2023 | Blog, KYC, News & Events

Why KYC Matters in the Digital Age

With today’s business and financial markets increasingly facing the challenge of keeping up with a rapidly evolving digital world, knowing who you’re dealing with and how to protect sensitive data and assets from being accessed by fraudulent users is essential. Know Your Customer (KYC) protocols and platforms provide a clear path for businesses and institutions to remain compliant with changing legislation and streamline their operations, without having to expend unnecessary (and inefficient) manpower to try and keep up.

As one of the most important first lines of defence against fraud, money laundering, human trafficking, and other illicit activities, making sure your KYC processes are as effective as possible is crucial not only for compliance sake, but for contributing to a safer global marketplace for all individuals.

Below, we’ll take a closer look at why KYC matters in the digital age. Read on to learn more.

Identity Verification in the Digital Age

Identity verification has always been a challenging factor to contend with, but in a digital era where millions of users can hide behind different platforms, being able to accurately confirm the identity of prospective partners is vital. KYC processes utilize a variety of methods, including document verification, biometric authentication, and digital identity checks, to validate the identity of customers and circumvent impersonation and unauthorized access attempts.

Countering Digital Fraud

Digital fraud is on the rise, and with evolving technology providing ample opportunities for criminals to exploit various measures for their own gain, countering fraud has become difficult. From phishing to account take overs, ransomware, and other illicit activities KYC software provides powerful too that helps businesses and financial institutions combat fraud and handle threats effectively when they arise. Early detection is key to minimizing financial losses and protecting the interests of both businesses and customers; By collecting and analyzing customer data, including personal information, financial history, and transactional behaviour, organizations can identify suspicious activities and potential fraudsters, leaving your operations safe and secure when it matters most.

Regulatory Compliance in the Digital World

Governments and regulatory bodies worldwide have recognized the necessity of KYC in combating financial crimes, money laundering (AML) , and terrorism financing (CFT). With such threats becoming increasingly dominant in the marketplace, legislation is more important than ever before, and compliance is no longer a nicety for those conducting business on both a domestic and global level. Failure to comply now comes with costly fines and the potential for serious criminal charges all of which can be easily avoiding by prioritizing KYC mandates and building them into your day to day operations.

Data Security and Protection

Gathering customer information as part of KYC necessitates a heightened focus on data security. Data breaches, cyberattacks, and illicit data mining have all become commonplace, and ensuring you have the right protocols in place to prevent unauthorized access is crucial. Businesses that implement KYC processes are often required to adhere to stringent data security standards and encryption practices that protect customer information, and limit the negative effects of a potential data breach.

In the digital age, KYC isn’t just about verifying identities, it’s also using the information gathered to prevent illegal access to valuable data, accounts, and other credentials that enable further crime to take place. With the right measures in place, KYC protocols can help ensure that, even if a fraudster does manage to access gate kept information, they are unable to fully authenticate themselves and pose as the legitimate account holder. Pairing high tech options like biometric scanning with multi-factor authentication (MFA) or other advanced methods, alongside continuous monitoring can can detect and prevent unauthorized access attempts, thwarting potential security breaches.

Strengthening Customer Trust

In an era where online trust is sometimes hard to come by, businesses must strive to do better and earn the trust of their customers Through implementing robust KYC measures, organizations demonstrate their commitment to security, integrity, and responsible business practices; gaining the loyalty of customers in the process. Knowing that their personal and financial information is being protected by rigorous KYC procedures can boost customer confidence and strengthen your position as an industry leader committed to ethical business.

Adaptation to Emerging Technologies

Finally, the current digital forward market has transformed the stander consumer relationship to technology as a whole. As users look towards new technologies like blockchain and decentralized finance (DeFi) KYC protocols adapt to handle evolving risks.

digital realm. As online transactions and interactions become increasingly integral to our lives, businesses and financial institutions must prioritize and enhance their KYC practices to protect both themselves and their customers in this dynamic digital landscape.

Stay on Top of the Digital World with iComplyKYC

At iComply, we know that the costs of non-compliance in the digital world can be devastating both financially and for your business as a whole. To help you mitigate risk and stay on top of current legislation, we offer a unique, end-to-end suite of KYC + KYB software that utilizes a modular platform that can be integrated into your workflow seamlessly with minimal downtime.

DISCOVER ICOMPLYKYC

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...

Biometric Verification: Strengthening Due Diligence and Protecting Identities

Biometric Verification: Strengthening Due Diligence and Protecting Identities

by | Oct 30, 2023 | Blog, KYC, News & Events

Biometric Verification: Strengthening Due Diligence and Protecting Identities

In today’s digital world, streamlined and reliable identity verification is essential for compliance and the protection of vulnerable persons, as well as safe business practices. From validating users conducting financial transactions to ensuring that sensitive healthcare data stays private, KYC (Know Your Customer) protocols are vital to preventing crime and creating a secure global market for all. Customer Due Diligence (CDD) has become increasingly complex, with more advanced measures (referred to as enhanced due diligence, or EDD) have become increasingly necessary to circumvent rapidly evolving fraudulent practices, especially where false users and identity spoofing is concerned.

Biometric verification has become a highly useful tool for verifying legitimate users within your network and identifying fraudsters. Below, we’ll take a closer look at why it plays such a significant role, as well as how it helps strengthen due diligence practices as a whole. Read on to learn more.

Why Due Diligence Matters

Due diligence is the process of conducting a thorough investigation or verification of an individual’s or entity’s identity, background, and activities. Due diligence plays key role in creating accurate risk assessment profiles, and allowing companies and financial institutions to accurately classify and establish appropriate business relationships with previous unknown entities. CDD and EDD play a vital role in helping to circumvent criminal activities like fraud, counter terrorist financing (CTF), data breaches, and more.

While traditional methods like document checks, manual review, and even simple gate keeping methods like a basic username/password may have once been enough to keep criminals at bay, our rapidly evolving digital society now faces my more complex illicit activity that demands a more advance approach to combat cyberattacks and identity theft across virtual networks.

Biometric verification serves as an advance, reliable method of positively identifying prospective clients and customers, and helps to enhance security measures and the efficacy of KYC protocols.

What is Biometric Verification?

 

Biometric verification refers to the use of unique biological or behavioural characteristics to confirm a person’s identity. Characteristics that are often assessed by biometric verification include fingerprints, facial features, iris patterns, voiceprints, and other unique biological “signatures”. These signatures are typically quite hard to replicate, and enhance CDD/EDD by offering:

Heightened Security

Biometric data, such as fingerprints, facial scans, and iris patterns, are inherently unique to each individual. Unlike traditional methods like passwords or PINs, which can be forgotten, shared, or stolen, genetic codifiers cannot be shared by multiple individuals. When paired with Multi-Factor Authentication (MFA) measures such as passwords or security tokens, biometrics can be an extremely robust addition to your overall protective protocols.

Mitigating Impersonation Risks

 

Impersonation, or “spoofing” of identities online is a significant point of concern in today’s digital environment. Financial institutions, government agencies, and healthcare providers all face substantial risk should confidential data be released to the wrong parties, and biometric data can be significantly harder (though not impossible with evolving techniques) to forge for illicit gain. Due to the difficulty in replication, biometric verification not only protects sensitive information, but also protects against identity theft for users.

Enhanced User Experience

Biometric authentication methods are typically faster and more efficient that traditional methods, which can often take days to process. Users can simply use their fingerprints, faces, or voice to confirm their identities instantaneously following the initial onboarding process. In instances where pins, passwords, or other forms of MFA are not required, the user experience can be much more satisfactory and even enhance your overall conversion rate within your network.

Compliance with Regulatory Requirements

With cybercrime becoming one of the most predominant concerns of leading law enforcement agencies like Interpol, regulatory requirements are becoming increasingly necessary for many industries globally. For industries that are subject to particularly stringent regulations, biometric verification offers a streamlined way of meeting such mandates avoiding costly fees for leaving high-risk data insufficiently protected.

Certain industries are subject to stringent regulatory requirements that mandate strong identity verification measures. Biometric verification can help organizations meet these regulatory obligations, reducing the risk of non-compliance and associated penalties. Compliance is especially crucial in sectors like finance and healthcare, where sensitive data is at stake.

Preventing Account Takeover (ATO)

Account takeover (ATO) is a prevalent form of cyberattacks, wherein criminals gain unauthorized access to user accounts through a wide variety of methods. Once a data breach has occurred, malicious actors often ransom access, sell data for further gain, and can cause serious harm to your business as a whole. While traditional authentication methods are vulnerable to data breaches and hacking attempts, biometric verification can be an effective deterrent against ATO attempts by ensuring that only the legitimate account holder can access their accounts, even in online or remote settings.

Stay Compliant and Efficient with iComply

In a world where digital transactions are the norm, robust due diligence measures are essential to safeguard sensitive information, prevent fraud, and maintain regulatory compliance. At iComply, we are proud to offer world leading KYC, CDD and EDD solutions that integrate highly effective measures like real-time biometric confirmation to help you stay compliant while enhancing user security and experience on your home platform.

Book a demo with our team today to learn more about iComply’s AML and KYC solutions and discover how iComplyKYC can be customized to fit the unique risk screening needs of your organization.

DISCOVER ICOMPLY

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...

Distinguishing Money Laundering from Embezzlement

Distinguishing Money Laundering from Embezzlement

by | Oct 20, 2023 | Blog, KYC, News & Events

Distinguishing Money Laundering from Embezzlement

With the world of financial crime constantly shifting and evolving, navigating illicit activities has become increasingly complex. Two prominent crimes within the financial sector are money laundering and embezzling, and while both do pose significant risk to customers and institutions, their overall impact and future applications are quite different. From an Anti-Money Laundering (AML) standpoint it is particularly valuable to understand the distinctions between the two, as well as the importance of compliance with regulatory standards.

Below, we’ll take a closer look at the defining differences between money laundering and embezzlement; read on to learn more.

Embezzlement: A Crime of Trust

Embezzlement is one of the most referenced forms of white collar crime and involves the misappropriation of funds or assets entrusted to an individual within an organization or business. Embezzlement does not inherently involve the integration or use of illicit funds (though it may in rare circumstances), and instead centres on a breach of trust and fiduciary duty. Embezzlement is typically conducted by employees or high-level executives in a position of power within an organization that handles financial assets ad occurs when the individual(s) in question divert company or public funds for personal gain. Diverting funds can take many forms, with common methods including forging checks, diverting payments, or misusing company credit cards.

The most important distinction between embezzling and money laundering is that embezzled funds are typically fully “legitimate” and thus do not need to be “cleaned”, unlike the illicit funds moved around by money launderers.

Embezzlement is typically addressed through internal controls, audits, and legal actions, often levied against a sole actor opposed to a criminal network. Since embezzled funds start as legitimate, detecting and preventing embezzlement requires organizations to implement strong financial oversight, segregation of duties, and regular audits to identify irregularities. Routine monitoring, internal KYC protocols for employees and prospective hires, as well thorough quarterly and annual reporting can help serve as preventative measures.

Money Laundering: Unmasking the Layers

Money laundering is a sophisticated process wherein illegally obtained funds are camouflaged or “cleaned” in order to appear legitimate within the financial system. Cleaning helps criminals to remove suspicion for criminals networks, allowing them to operate undetected with such funds typically being used to enable various illicit activities throughout the global stage.

In order to successfully launder funds, there are three key stages that must be completed; placement, layering, and integration.

Placement: During the initial stage of laundering”dirty money” from criminal activities, such as drug trafficking or corruption, is introduced into the financial system. To avoid early detection, criminals will often distance themselves from the source of funds, typically by depositing them in various across multiple financial institutions.

Layering: Once money has been placed in the accounts mentioned above, launderers begin the process of obscuring any transaction trails and masking their illicit funds. Criminals may conduct multiple micro transactions between accounts (larger transfers are more likely to be flagged), buy and sell assets, or engage in international transfers, and utilize decentralized financial vendors to complication tracking efforts.

Integration: Finally, when funds have been “cleaned” by being moved through various avenues, funds are then reintroduced into the legitimate economy and organically exchanged by unsuspecting individuals and entities. Once funds reach the integration stage, it can be highly difficult to trace their original point of origin, allowing criminal networks to hide behind what now appears to be a long trail of legal, legitimate transactions.

AML Focus on Money Laundering

 

Global legislators recognize the extreme threat posed by money laundering. While embezzling stands to affect multiple individuals through the loss of funds, the ethical and humanitarian implications of money laundering are much greater. Laundered funds are often used to enable dangerous and highly illicit activities such as funding the global black market, human trafficking, finance the drug trade, weapons dealing, terrorist financing, and more. AML policies and procedures seek to circumvent the opportunity for criminals to achieve their malicious objectives, and focus on vigilance, due diligence, and reporting as well as refining preventive and detection methods.

From an AML perspective, the primary concern is preventing the integration of illicit funds into the legitimate financial system. Financial institutions and businesses implement robust AML policies and procedures to identify and report suspicious transactions, which could indicate money laundering activities. AML efforts focus on vigilance, due diligence, and reporting to authorities, with an emphasis on the detection and prevention of financial crimes that seek to legitimize the proceeds of criminal activities. Compliance with such measures is essential for building a safer market for all, and for avoiding costly fines and legal repercussions for your business.

Your Partners in AML Compliance

At iComply, we are proud to partner with businesses and institutions across North America and Europe to empower streamlined AML compliance and preventive practices. We offer a modular suite of KYC and AML products that makes compliance simple and cost-effective to achieve, and are pleased to be a trusted source of KYC support.

Learn more about the benefits of iComply’s award-winning suite of AML and KYC software by booking a demo today.

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...

Navigating the Risks of Working with Sanctioned Individuals: 5 Crucial Insights

Navigating the Risks of Working with Sanctioned Individuals: 5 Crucial Insights

by | Oct 20, 2023 | Blog, KYC, News & Events

Navigating the Risks of Working with Sanctioned Individuals: 5 Crucial Insights

As recent state conflicts have reminded the global market, the realities of conducting international trade and business is not without its fair share of risk and necessary regulation to avoid further harm. Sanctions serve as a form of intervention and protection for both national communities (i.e. an afflicted country) as well as individuals who are at a much higher risk of being targeted by criminal actives like human trafficking, terrorist funding, and more. Reputable businesses and financial institutions know that conducting with sanctioned individuals and entities is highly ill-advisable and can result in severe legal, financial, and reputational consequences.

Below, we’ll take a closer look at the implications of working with sanctioned individuals as well as the risks associated in doing so. Read on to learn more.

Understanding Sanctions Lists

Sanctions lists, also known as restricted or denied parties lists, are lists mandated and managed by governmental bodies. Sanctions are intended to serve as a form of punitive measures against a national, entity, or individual who are believed (or are known) to have violated serious international laws and/or norms, and present a danger to others. Sanctions lists are regularly updated throughout the international community to include the names of individuals, entities, and countries that are being penalized. In order to ensure you are compliant with the most up to date list of sanctioned individuals, it is essential to make sure your CDD and EDD protocols conduct routine checks on high risk individuals (more on this below).

Sanctions target various types of activities, including trade, financial transactions, and travel, and may also incorporate restrictions such as freezing assets, travel bans, and prohibiting transactions.

Strict Legal Consequences

One of the most critical aspects to understand when dealing with sanctioned individuals or entities is the strict legal consequences of non-compliance. Failing to identify and comply with sanction mandates often result in severe legal consequences for businesses. Negative repercussions for businesses may include:

Financial Penalties: Violators may face substantial fines, which can run into millions or even billions of dollars, depending on the severity of the violation.

See: Microsoft’s 2023 $3.3 Million fine for failing to comply with export controls and sanctions laws

Asset Freezing: Sanctions can result in the freezing of assets, making them inaccessible until the sanctions are lifted.

Loss of Licenses: Businesses may lose licenses or permits necessary for their operations.

Criminal Charges: In cases where sanctions and related risks are overtly ignored in an egregious manner, individuals involved in sanctions violations may face criminal charges, leading to imprisonment.

Reputational Harm: Even if legal penalties are not imposed, sanctions violations can seriously damage a company’s reputation, especially on the global level.

It is crucial to note that, due diligence is an expectation of businesses, especially those operating at the international scale, and thus claiming ignorance is rarely accepted as a valid excuse.

The Global Scope of Sanctions

 

Sanctions are rarely, if ever limited to a singular jurisdiction due to the threat level that must be present to warrant their implementation. Sanctions are typically international in scope, with multiple countries adopting similar penalties for a consolidated approach. That means, choosing to work sanctioned entities doesn’t just affect you on a global level, it likely has global ramifications for vulnerable peoples to contend with along with putting your business at risk. As the international market continuously tries to find a way to regain some form of moderate centralization in an aggressive age of technological expansion and digital adoption, universal compliance is crucial to allowing sanctions to serve as a viable deterrent.

Though it may be difficult for businesses involved in international trade or finances to stay on top of rapidly evolving situations, it is crucial for the safety of the market as a whole that you fulfill your obligation to due diligence and avoid accidental association with dangerous players.

The Importance of Due Diligence

As mentioned above, customer due diligence (CDD) and enhanced due diligence (EDD) are an expectation of businesses that will be interacting with and doing transactions with unknown, questionable, or previously sanctioned individuals or entities. EDD in particular is essential for high risk individuals, and focuses on a much deeper level of know your customer (KYC) data points including the customers in depth background, political leanings, financial history, and more. Where basic CDD starts the process by identifying a customer’s identity, including verifying their name, date of birth, address, and other relevant information, when dealing with high value transactions or increased risk situations, EDD is a necessary.

Building a Better Path Forward

While sanctions may ultimately be considered, at least in part, a reactionary measure to criminal activity, the core intent is to prevent further harm to vulnerable peoples across the globe.

At iComply, we’re proud to partner with businesses across North America and Europe to provide comprehensive KYC, CDD, EDD and AML solutions, all designed to uphold the important objectives that drive the implementation of international sanctions. We know that navigating the ever-evolving realities and challenges of verifying digital users and staying on top of sanctions can be time-consuming and difficult for businesses to manage. Our unique, end-to-end suite of KYC + KYB software utilizes a modular platform that can be integrated into your workflow seamlessly with minimal downtime, and built-in compliance measures for 250 global jurisdictions, making compliance easier than ever.

Contact us today to learn more.

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...

The Importance of Choosing the Right KYC Vendor: Safeguarding Your Business in the Digital Age

The Importance of Choosing the Right KYC Vendor: Safeguarding Your Business in the Digital Age

by | Oct 2, 2023 | Blog, KYC, News & Events

The Importance of Choosing the Right KYC Vendor: Safeguarding Your Business in the Digital Age

Are you set up for success when it comes to KYC compliance and anti-AML practices? As of Q2 of 2023, an estimated 5.18 billion users have adopted online practices (source). With this rapid rise in digital adaptation comes an increased focus on identifying and rectifying the potential risks associated with illicit activities like fraud, money laundering, terrorist funding, and more. As regulatory boards pivot to avoid the costs and human suffering associated with scams and other fraudulent activity, one message becomes increasingly more clear year after year: Know Your Customer (KYC) safeguards are essential to crime prevention moving forward. Choosing the right software to back your procedures is crucial for compliance and reduces your exposure to risks that could leave you facing heavy fines and legal repercussions.

Below, we’ll take a closer look at of the importance of having streamlined KYC, CDD and AML protocols implemented, as well as the benefits of using a proven software platform like iComplyKYC. Read on to earn more!

What Are the Core Objectives of KYC Protocols

 

The core, KYC protocols are designed to eliminate ambiguity and risk associated with doing business with unknown persons and entities. KYC processes and software must work to establish a secure and trustworthy environment for businesses and institutions to engage with, and must focus on the following:

– Verifying the identity of customers and/or prospective partners

  • Evaluating and assessing the risk associated with known activities and associations of a prospective partner, as well as any ties to illicit activities (money laundering, fraud, terrorist funding, etc.).
  • Creating accurate risk profiles based on the above information in a manner that is thoroughly documented, and able to be accessed as needed.
  • Enabling routine re-assessment and maintenance of profiles in response to new information and/or for periodic safekeeping in accordance with compliance legislation.

Software that allows businesses to identify and evaluate crucial information about unknown entities accurately helps to mitigate overall risk exposure and empowers your team to establish strong relationships with the right parties. This approach not only helps you avoid headaches but also ensures regulatory compliance and lays a solid foundation for all parties involved to thrive.

What to Ask Prospective Software Providers

In order to choose the right software provider for your KYC needs, businesses should consider the following:

How Comprehensive is the ID verification process?
ID verification is the backbone that allows more advanced measures of due diligence (and enhanced due diligence) to take place when necessary. Your software platform should be able to pull from multiple, highly vetted data sources and utilize multiple approaches to provide accurate results. iComplyKYC, for example, uses highly reliable, ethically sourced data sources that are among the most trusted in the world and implements real-time verification methods, including natural language processing, to ensure highly accurate results you can trust.

What Compliance Measures are in Place?

Your chosen software must keep your operations compliant with all regional and global mandates and should be able to adapt to evolving legislation without disrupting processes (where possible). iComplyKYC is compatible with KYC mandates across 250 global jurisdictions and is designed to seamlessly integrate with your existing protocols to minimize headaches and maximize efficiency.

Are Your Solutions Scalable?

As with above, your software needs to be able to pivot in alignment with evolving mandates, but it also needs to be able to scale with your business as you grow and face different client demands. KYC ideology is meant to be a short and long-term preventive measure, and thus companies need to plan around their future goals as much as they incorporate future projections and known risks as they are uncovered by regulatory boards and enforcing agencies.

Meet iComplyKYC

iComplyKYC understands the unique needs and challenges of identity verification, as well as the difficulties faced by businesses trying to stay compliant. We believe in creating trust in every transaction and have developed a modular suite of KYC software that allows you to focus on the core operations of your business while reducing the cost of ID verification and KYC protocols by up to 80%.

As one of the most versatile, efficient, and dependable solutions available, iComply is the leading choice for KYC software and electronic identity verification in the US, Canada, and the UK.

DISCOVER HOW NOW

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...

Streamlining KYC and KYB for Trust and Compliance

Streamlining KYC and KYB for Trust and Compliance

by | Sep 26, 2023 | Blog, KYC, News & Events

Streamlining KYC and KYB for Trust and Compliance

With eCommerce continuing to experience exponential growth since increasing over 50% to over $870 Billion over the course of the pandemic (source), financial fraud and digital criminal activity have risen in tandem, posing a significant threat to financial institutions and businesses globally. Know Your Customer (KYC), Know Your Business (KYB), as some regional jurisdictions prefer, protocols are designed to help close the many gaps present in our evolving digital economy, and to minimize the risk of your businesses becoming unknowingly complicit in criminal activity.

KYB practices help to ensure compliance with anti-fraud and money laundering measures, as well as build trust amongst your existing and prospective customers. At iComply, we know the value of putting trust in every transaction. Below, we’ll take a closer look at the benefits of streamlining your KYB/KYC measures, as well as the importance of choosing the right compliance partner for your organizational needs. Read on to learn more.

 

KYC vs. KYB, What’s the Difference?

While many may already be familiar with the standard practices involved in KYC efforts, there can often be confusion as to what differs between KYC and KYB measures. Both share the same ultimate goal of verifying and assessing core identification metrics to build trusted risk profiles, but KYB, in particular, often involves more advanced data analysis (Enhanced Due Diligence) in order to properly assess the many unique details associated with corporate entities and institutions that must meet compliance regulations.

While standard KYC and customer due diligence (CDD) may be satisfied with basic records and identity documents, KYB and related EDD protocols demand a higher level of documentation that includes core details like sources of wealth, corporate structuring, identification of the ultimate beneficial owners (UBOs), known associations and previous business dealings (as well as previous business names), etc. Where one might consider KYC to be a more “B2C” oriented form of fraud protection, KYB focuses more on “B2B” elements that stop money laundering, terrorism funding, and other illicit activities from infiltrating the market at a corporate level.

When utilized efficiently, KYB can help your business grow in the following ways:

1. Compliance

2022 saw just shy of $5 billion handed out in AML fines, and with cybercrime showing no signs of slowing down, businesses cannot afford, either ethically or financially, to remain negligent in the face of renewed threats from money launderers, traffickers, fraudsters, and others that seek to use funds for illicit methods. Staying compliant ensures that every transaction originating from and travelling through your organization is above board, and helps maintain a position of trust for consumers within the market.

 

2. Better Business Partners

Alongside trust in your customer demographic, your business will also benefit from knowing that everyone you choose to partner with is as legitimate as they claim to be. Instead of onboarding companies with excessive risks to your portfolio, you can rest easy knowing your clients are ethical and financially sound to work with. Additionally, as KYB protocols require consistent monitoring, you’ll also be able to stay on top of any evolving points of consideration, including potential sanctions, corporate restructuring that may introduce members with a higher risk profile into the fold, and avoid shell companies that serve as a front for illegal activity.

 

3. Secure and Streamlined B2B Interactions

KYB processes make it safe to do business with other businesses, even outside of your clientele. KYB helps to remove the risk of partnering with unknown entities by identifying UBOs and key shareholders, as well as relevant financial history, meaning that you can enter into partnerships confidently. When both parties know exactly who they’re working with, many of the headaches and pain points associated with interactions, and when both parties maintain a robust KYB system, finessed documentation can significantly reduce onboarding time.

KYB Implementation with iComply

At iComply, we know that streamlined KYB software is one of the best ways to remain in alignment with all compliance standards, avoid fines, and build a foundation of trust among your peers and clientele. Our modular suite of KYC, KYB, and AML products not only ensures you have everything you need to manage and maintain a wide range of jurisdictional KYB regulations and conduct risk-based assessments but also automates your customer identification and risk screening processes more intuitively than ever before.

Book a demo with our team today to learn more about iComply’s compliance solutions and discover how iComplyKYC can be customized to fit the unique risk screening needs of your organization.

DISCOVER ICOMPLY

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Understanding the Distinction of CDD vs. EDD in AML Compliance
Understanding the Distinction of CDD vs. EDD in AML Compliance

Nov 28, 2023

Understanding the Distinction of CDD vs. EDD in AML Compliance As cybercrime continues to aggressively expand and pose new challenges to regulators and law enforcement agencies across the globe, anti-money laundering (AML) efforts have become vital to protecting the...

The Human Dangers of Ignoring Know Your Business (KYB) Protocols
The Human Dangers of Ignoring Know Your Business (KYB) Protocols

Nov 28, 2023

Do you know the hidden risks of ignoring Know Your Customer (KYC) and Know Your Business Protocols? While costly fines are a solid reason for compliance, the heart of each AML, KYC and CDD mandates is the intent to eradicate the very real, pervasive human consequences...