KYC: 3 steps to effective Know Your Customer compliance
KYC- Know Your Customer is basically having complete knowledge about customers.
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• I don't think KYC is a needful of any description. The importance it has achieved in the last few years is tremendous. It is a process of assessing the customer with all the legal requirements to comply with AML Laws, therefore, increasing the transparency in the process and letting the customers enjoy the seamless process at the same time. • KYC Compliance is most important for the financial institutions to ensure the identity of customers by customer identification and verification meeting KYC compliance. It has an imperative role in the financial landscape these days to combat money laundering and terrorist financing. Digital KYC verification is a good process for improving and meeting compliance effectively but making it compliant is also important.
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Know the three steps of KYC Compliance: 1. Gathering the whole info: It is the initial phase of the KYC system where the complete information about the customer is collected like Name, Date of Birth, Address, and Identification proof thus identified with the identity verification process. 2. Document uploading is the next step: In this step, the financial institution cross-checks an individual's information and the authenticity of the documents of the customers. This due diligence involves several steps of KYC Compliance, these are: Upgraded due diligence Fundamental customer due diligence Disentangled due diligence Add a footer
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3. Verification of given information: After the process of uploading, the next step is information verification which is done to bring confidence in the information completely. This process ensures that no record is missed and each piece of information is genuine.
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FR • Technology is connecting consumers and businesses flawlessly, easing the process of humans and bringing transparency to the process. It has eliminated all the barriers of language and distance and made everything possible online. But this has significantly increased the risk of frauding the identity and enhancing the risk of financial crimes. This is the reason why institutions are adopting KYC to meet the client's requirements and maintain authenticity as well. Ensuring an effective KYC procedure is important to account for the genuine people and the fraudsters. Its compliance is important for the institutions to get things clear and simply done. Technology innovation is providing better approaches to bringing conventional information in front.
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