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Travel Rule Facts: What to Know About FATF’s Recommendation 16

Travel Rule Facts: What to Know About FATF’s Recommendation 16

by | May 3, 2023 | Blog, KYC, News & Events

Travel Rule Facts: What to Know About FATF’s Recommendation 16

Are you aware of the key details pertaining to the Financial Action Task Force (FATF)’s Travel Rule?

As a relative newcomer into the global securities and digital legislation field, the Travel Rule—also referred to as “FATF Recommendation 16”—has garnered significant attention as of late, particularly with 2022 closing the year with several alarming instances of crypto market-related security issues. While the Travel Rule has not been “formalized” into governing legislation, it is referenced as such because it closely resembles U.S. requirements pertaining to documenting both the originator and recipient identities of virtual asset transactions.

Recommendation 16 represents the understanding of both FATF and the global financial legislation community that the exchange of virtual currencies and assets like cryptocurrency opens new avenues for financial crime and corruption. Below, we’ll take a quick look at some of the basics of the Travel Rule, as well as what to anticipate from continued legislative efforts in the future.

What is the “Travel Rule”

The Travel Rule was introduced in 2019 as a way to establish better visibility and more consistent standards for transactions using virtual asset service providers (VASPs). As described above, the Travel Rule recommends that virtual exchanges attach a unique identifier to both the originating and destination wallet in order to verify and assess the known risk attached to involved entities.

By removing the “anonymous” nature of virtual exchanges and implementing a form of traceable accountability, the risk of fraud lowers and it becomes difficult for criminals to conduct illicit activities like money laundering, terrorist financing, and more.

At present, the guidelines suggested by the FATF predominately apply to transactions exceeding $1000 USD/ €1000, with exchanges under this amount only needing the name of the originator/beneficiary as well as the specific VA wallet or transaction code for each. If a transaction exceeds the $1,000 threshold, the following data points are recommended:

  • Originator/Beneficiary name
  • Account number of the Originator and Beneficiary (wallet address)
  • The geographical address of the Originator
  • National identity number (SSN or SIN) for all involved parties
  • The Customer ID number for the ordering institution
  • DOB and place of birth

While the Travel Rule is often discussed when pertaining to VASPs, it is also applicable to financial institutions when a transaction involves virtually masked parties (e.g. a wire transfer that ‘legitimizes’ the assumed value of cryptocurrency during cashout).

From Recommendation to Legislation

As mentioned earlier, the Travel Rule we know today remains more of an international recommendation rather than a globally upheld financial regulation. With that being said, the European Parliament is currently in the process of implementing a new bill designed to close known gaps in the current EU regulatory environment.

The Markets in Crypto-Assets (MiCA) is expected to be voted on in early 2023, with possible adoption in 2024, and aims to establish harmonized rules for crypto-assets handled within the European Union.

Under the current framework of MiCA, crypto-assets are defined as any “digital representation of a value or a right which may be transferred and stored electronically, using distributed ledger technology or similar technology” and regulated into 3 different categories:

  • Asset-Referenced Tokens (ARTs)
  • Electronic Money Tokens (EMTs)
  • Other

Under current guidelines, MiCA does not apply to security tokens, NFTs, or E-Money Directives.

Both the Travel Rule and MiCA play a vital role in the continued regulation and safekeeping of virtual asset exchanges. Digital and cyber-based crime is anticipated to become one of the most prevalent forms of fraud in the next few years (source); with this in mind, a continued commitment to compliance and security is essential for all institutions and entities that interact within the global marketplace.

Protection with Ease through iComply

At iComply, we know that staying on top of constantly evolving AML and KYC protocols can be challenging, especially with the rapid pace virtual assets continue to expand. We are proud to offer a one-of-a-kind end-to-end suite of KYC + KYB software that makes it simple to stay informed and compliant with the latest AML legislation, taking a strict stance against the harms caused by all forms of fincrime.

Our KYC software, iComplyKYC can be integrated into your existing framework within minutes and easily configured to match the regulatory guidelines of nearly 250 international jurisdictions, giving you safety and peace of mind when it matters most.

Learn how you can stay ahead of evolving AML and fraud standards, and discover why iComply is your leading choice for software solutions by talking to our team today!

DISCOVER ICOMPLYKYC

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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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

Nov 6, 2023

With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

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Why KYC Matters in the Digital Age

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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...

EDD In Review: Taking A Brief Look at Enhanced Due Diligence

EDD In Review: Taking A Brief Look at Enhanced Due Diligence

by | Apr 27, 2023 | Blog, KYC, News & Events

Are your Enhanced Due Diligence (EDD) protocols up to the task of mitigating risk in an increasingly digital world? With Interpol’s new Global Crime Trend report strongly indicating that money laundering, phishing, and online scams pose a significant risk to businesses and financial institutions, as well as suggesting that fincrime is expected to drastically increase in the coming years, the importance of investing in your EDD processes is more significant than ever.

At iComply, we’re proud to partner with businesses and institutions across North America and Europe to offer comprehensive KYC and EDD solutions you can trust. Backed by powerful technologies like biometrics and edge computing, iComplyKYC gives you access to a robust suite of KYC products that make Customer Due Diligence (CDD) and EDD straightforward, saving you time and money while streamlining your operations.

Below, we’ll take a quick refresher look at some of the basics of Enhanced Due Diligence, why it matters, and the benefits of partnering with iComply for your compliance needs.

What is Enhance Due Diligence?

As the name suggests, EDD refers to a more in-depth level of customer investigation and identity verification conducted during onboarding, as well as on a necessary basis in response to changing risk profiles, world events, a change in known associations, and more. Enhanced Due Diligence serves as an extra layer of protection by enacting increased scrutiny to garner details not typically found using conventional CDD methods.

EDD procedures are more robust than standard CDD assessments and provide highly detailed reporting that can be reviewed on a routine basis for high-risk clients, reporting that can be used to prove “reasonable measures” have been taken to adequately conduct threat assessments.

Why EDD Matters

The value of Enhanced Due Diligence expands well beyond simply staying compliant with KYC and AML protocols. EDD plays a vital role in helping to safeguard the global market against the very real, pervasive threats posed by financial crime, fraud, and other related activities. When implemented properly and routinely reviewed, EDD protocols allow countries and global legislators to strengthen their efforts against humanitarian atrocities like human trafficking, forced labour, terrorist funding, and more.

Simply put, EDD is about more than checking a box to avoid fines; it helps protect vulnerable people against exploitation and threats that would otherwise go unseen.

Spotlight On: earn more about the importance of AML legislation in combatting human trafficking here.

When is Enhanced Due Diligence Necessary?

While Customer Due Diligence (CDD) is considered a standard practice under KYC protocols, EDD may be reserved for higher-risk cases or circumstances where enhanced information is necessary to move forward safely. Key examples that would warrant the need for EDD to be conducted include:

  • When dealing with businesses or third-party entities on the High-Risk Third Countries list
  • Interactions involving companies in sectors with an increased risk for money laundering including gambling, securities, and industries specializing in the transfer of virtual assets
  • Interactions with PEPs or PEP-adjacent individuals (e.g. family members, friends, colleagues, etc.)
  • Deals involving Shell corporations
  • Private and correspondent banking entity deals
  • Interactions with companies that have any known ties to funding terrorist activities or that have been blacklisted

When conducting EDD, organizations must ensure that highly detailed documentation is readily accessible, and that routine reviews are conducted to adequately and continuously assess risk. Failure to comply with either of these measures may result in fines and can expose your business, as well as your customers, to the risks associated with fincrime and other non-ideal circumstances.

Transparency Made Simple

At iComply, we believe that staying compliant with AML and KYC standards, including EDD processes, should be simple. Our world-leading, modular suite of KYC products makes it easy to compile and respond to key customer data, navigate changing legislation, and reduce the cost of fincrime compliance by automating up to 80% of your KYC protocols. iComplyKYC is designed to seamlessly integrate with your existing security framework within a matter of minutes and gives you access to compliance measures in nearly 250 jurisdictions across the globe.

When you need information you can trust and KYC processes designed to tackle the market with ease, iComplyKYC has you covered.

Book a demo with our team 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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

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With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

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Why KYC Matters in the Digital Age

Oct 30, 2023

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...

Is it Time For a KYC Overhaul?

Is it Time For a KYC Overhaul?

by | Apr 27, 2023 | Blog, KYC, News & Events

Is it Time For a KYC Overhaul?

Are your organization’s processes due for a KYC and regulatory compliance update? If it’s been quite some time since you’ve reviewed your Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, there is a strong chance you may be at risk for fines and exposing yourself and your customer base to the opportunity for fraudulent or criminal activity.

As one of the most prevalent sources of crime and corruption across the globe, financial fraud exposes the global community to significant dangers, with an estimated 90% of money laundering crimes still going undetected. In 2022, the SEC levied an alarming US$6.4 Billion in fines for non-compliant entities.

With decentralized banking and the exchange of digital assets like cryptocurrencies becoming a growing focal point among regtech entities, it is more important than ever before to stay on top of your KYC practices and streamline your operations through the use of a trusted eKYC platform like iComplyKYC.

Below, we’ll take a look at 4 key signs it’s time your organization should consider making the shift to a more effective eKYC program.

Onboarding Process

One of the biggest (and earliest) signs that you have a KYC problem within your institution is high abandonment rates during the onboarding process. While a certain level of attrition is to be expected, if you seem to be constantly losing users before they fully integrate into your system, this is a sure sign that a closer look is warranted.

Poor AML and KYC processes (more on that shortly) can force prospective clients to wait longer than usual to be fully verified and integrated, and manual reviews can draw the process out even more. The reality for most businesses is that if you keep people waiting, you weaken your chances for retention and cost your business valuable revenue. Implementing an eKYC platform like iComplyKYC greatly reduces these wait times, providing a better customer experience while still maintaining due diligence (CDD).

Ongoing Customer Reviews

KYC and AML protocols are not limited to new clients; in order to better reduce risk and circumvent crime, organizations need to be diligent in their routine reviews and maintenance of customer risk profiles. Recent political events in Europe have served as a valuable reminder that the sudden issuing of global sanctions and other major global events can catch unprepared companies off-guard and significantly hinder security efforts if your organization lacks the ability to pivot as needed with minimal notice.

iComplyKYC helps to combat the challenges associated with manual review by allowing you to set automation that makes it easy to review client risk assessments as needed, whether due to geographical events, routine check-ins, or uncovering previously undetected associations that may lead to the need for Enhanced Due Diligence (EDD) to be conducted.

Better Risk Screening

When screening candidates and prospective clients (or reviewing existing profiles as per above), not all data is equal in its ability to adequately assess and capture risk. iComplyKYC uses the most trusted and legally accessible databases across the globe to ensure accurate results for both automated and manual screening and to reduce the risk of false positives with fuzzy matching and Levenshtein distance algorithms. This means a far better screening process with results you can trust.

Standardized Efficiency

Another major issue facing KYC processes is a lack of standardized practices that often lead to communication breakdowns and sensitive client data being improperly assigned. Implementing an eKYC platform like iComplyKYC removes ambiguity and keeps everyone on the same page, empowering your organization to move forward with confidence and transparency at every level.

Streamline Your KYC with iComply Today

Having streamlined KYC and EDD protocols is essential to retaining customers, as well as staying compliant in an increasingly fast-paced digital world. iComply’s innovative, modular suite of KYC products is designed to make it easy to integrate security measures and identity verification practices into your daily operations, with setup taking a matter of minutes and giving you access to compliant measures in nearly 250 jurisdictions worldwide. iComplyKYC uses edge computing to provide a truly end-to-end experience (let us show you how), and can reduce the cost of running KYC protocols by up to 80% saving you time and money where it matters most.

Book a demo with our team today to learn more about iComplyKYC and how our platform can be tailored to your specific needs and applications.

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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

Nov 6, 2023

With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

Why KYC Matters in the Digital Age
Why KYC Matters in the Digital Age

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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...

Exploring the Importance and Challenges of KYC Protocols

Exploring the Importance and Challenges of KYC Protocols

by | Apr 21, 2023 | Blog, Human Trafficking, KYC, News & Events

Exploring the Importance and Challenges of KYC Protocols

Are your fraud prevention protocols up to date with the latest Know Your Customer (KYC) and Anti-Money Laundering (AML) standards? In 2021, there was a 43% increase in fraud and computer misuse crimes compared to 2019, indicating that economic crime is on the rise. Having the right procedures and resources in place to prevent nefarious activities is essential for financial institutions and businesses.

With uncertain markets, ongoing global conflict, and a rapid influx of online banking users globally, 2023 has become a critical year for compliance legislation; failure to abide by evolving standards will likely spell even steeper costs for businesses than ever before.

At iComply, we know that using a proven KYC solution like our iComplyKYC platform is one of the best ways to streamline your operations and decrease your exposure to risk. As one of the leaders in identity verification and regulatory compliance, we’re proud to partner with clients across the globe to ensure you have everything you need to operate safely and efficiently. Below, we’ll take a closer look at some of the core elements that drive KYC legislation, as well as the benefits of using proven solutions like iComplyKYC.

What is KYC?

Know Your Customer (KYC) is a principle that refers to the practice of mitigating risk through the accumulation of verification-based information for unknown individuals and entities on a business level. From hiring new team members to securing a loan, adding a customer to your database, and more, KYC and AML protocols help to reduce the opportunity for criminals to conduct fraudulent practices and engage in nefarious activities like terrorist financing (CFT), human trafficking, the transfer of illegal products for financial gain, and more.

While KYC may not be a new concept (background checks have been an increasingly prevalent occurrence since the late 1970s thanks to both the Consumer Credit Protection Act and the Fair Credit Reporting Act), the constant push towards a more digital-centric existence makes being able to verify who you’re “working with” even more significant.

While each industry will have different points of consideration and corresponding legislation to accommodate when conducting KYC protocols, the end goal is to give businesses and their clients protection against fraud and other criminal acts that put the global marketplace at risk.

How Does KYC Mitigate Risk?

The unfortunate reality today is that international legislators and security watchdogs have yet to find a definitive method that completely halts the capacity for criminals to operate undetected in the financial sector.

While many of these crimes still go undetected, KYC and AML guidelines make it significantly harder for fraudsters to fly under the radar. By exposing fake users, flagging suspicious transfers, and performing other risk-reporting activities, organizations and regional legislators have a much better opportunity to address threats head-on and eliminate the misuse of funds or assets for nefarious purposes.

Addressing Global Challenges

One of the most difficult challenges facing the global regulation industry is pushing for the universal adoption of compliance guidelines, which, as mentioned above, currently differ regionally.

The EU and North America have the benefit of being able to leverage governing bodies like the FTC, Financial Action Task Force (FATF), Eurojust, Europol, and more, but not every country has embraced the need for KYC and fincrime prevention equally. This lack of balance presents regulators with a significant problem, as many of the highest-risk countries for illegal trafficking and fraudulent activity tend to have more relaxed (or an absence of) protocols that allow criminals to continue to operate unchecked with greater ease.

Though it may be easy to infer that financial crime is more centralized in such regions, the international community along with institutions that deal with financial and digital asset transactions must remember that rapidly evolving technology makes it more feasible than ever before for criminals to have a global reach. This makes compliance with KYC and AML protocols a necessity rather than a nicety; businesses need to be aware that failure to comply doesn’t simply result in fines, but can also lead to gateways for dangerous activities that affect the global community as a whole.

Why Partner With iComply

At iComply, we know the importance of having access to KYC protocols you can trust when it matters most. That’s why we’re proud to offer an innovative, modular-based suite of KYC programs that make it easy to stay compliant and adapt to evolving legislation.

iComplyKYC leverages cutting-edge AI and blockchain technology to ensure total regulatory compliance in over 245 jurisdictions worldwide and makes it easy to build fully-automated workflows for unique client types, jurisdictional requirements, and more with minimal downtime.

With a readily accessible 360º view of KYC data across your entire organization, you can move forward with confidence and know you are in the best position possible to combat fraud and financial crime and stay on the right side of KYC legislation in your region.

Ready to Discover More?

Contact us today to learn about iComply’s comprehensive, modular compliance solutions or to book a demo with one of our product specialists.

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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

Nov 6, 2023

With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

Why KYC Matters in the Digital Age
Why KYC Matters in the Digital Age

Oct 30, 2023

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...

Assessing Customer Risk with Automated KYC and AML Software

Assessing Customer Risk with Automated KYC and AML Software

by | Apr 21, 2023 | Blog, Human Trafficking, KYC, News & Events

Assessing Customer Risk with Automated KYC and AML Software

With financial crime, fraud, and money laundering quickly taking precedence as some of the most aggressively expanding forms of crime across the globe, having a risk-based approach to monitoring your current customer base, as well as verifying the identities of new entities is essential to circumventing criminal activity and providing safeguards that allow users to navigate your institution with peace of mind.

A risk-based approach, as defined by the Financial Action Task Force (FATF) focuses on the identification, assessment, and understanding of money laundering and other types of financial crime through Customer Due Diligence (CDD) as well as Know Your Customer (KYC) protocols. When integrated into your regular securities framework and operations, KYC procedures can reduce costs, boost AML efficiency, and help contribute to a safer global marketplace for all entities to navigate.

Below, we’ll take a closer look at some of the key elements of taking a risk-based approach to evaluating entities and circumventing fraud, as well as the benefits of using a trusted KYC software provider like iComply to streamline your procedures. Read on to learn more!


What Are the Main Steps to Implementing a Risk-Based Approach?

While there are many different factors that contribute to taking a holistic approach to circumventing fraud, there are a few main variables that make up a solid risk-based plan. These aspects include:

Assessing Risk and Value

It comes as no surprise that the backbone of adopting a risk-based approach to AML involves painting a clear picture of the risk associated with certain customers through the development of detailed profiles that allow you to carefully, and accurately, segment clients as needed. Core components that help assign a risk value include your ability to verify their identity and/or financial information, known activities and patterns of behaviors that may cause concern, geographical location, and more.

Should a prospective customer raise cause for concern, you should also have refined Enhanced Due Diligence (EDD) protocols in place that allow you to dig deeper and clarify any missing variables that would allow you to make a definitive decision before moving forward.


Efficiency and Practicality

While manual reviews can solicit valuable information about clients, they are often non-practical in fast-paced business environments that demand results as quickly as possible to avoid downtime and inconvenience for users. Automated AML and KYC platforms not only help to eliminate accidental biases and the risk of human errors, but they also streamline your operations and allow you to seamlessly conduct AML screening in a significantly faster (and much more reliable) manner.

At iComply, we believe that taking a risk-based approach to KYC and AML doesn’t have to mean long wait times and further headaches. Our innovative suite of modular risk assessment software puts compliance in your hands with ease, integrating with existing security frameworks in a matter of minutes and adopting regulations across the globe for maximum protection and compliance.

Evaluating on a Micro Level

When countering finCrime and the many risks associated with criminal activity, there is no denying that it’s important to be aware of the macro-level effect such efforts have on the global marketplace, including reducing human trafficking statistics, combatting the international drug trade, circumventing terrorist financing, and more. With that being said, it’s just as important to look at the successes garnered on a micro-level, with businesses and institutions understanding that their efforts must focus specifically on an individual customer level to stay as compliant and accurate as possible. Clearly identifying parties within your own unique database plays a key role in both micro and macro efforts to reduce the harm of finCrime, and ensure that your institution will always be on the right side of compliance laws in the process.

What About Assessing Dynamic Risk?

Risk, much like the customer data it is attached to, is not a stagnate prospect. Companies and institutions that only conduct KYC and AML measures when new accounts are opened miss one of the most important parts of crime reduction. It should always be anticipated that customer information will change regularly, with new details like new associations and behaviors directly influencing their actual level of risk. Inaccurate risk scores fuelled by outdated information pose a serious risk to AML efforts, and it is estimated that including continuous review measures like transaction monitoring and customer, screening can reduce your risk of misclassifying your risk profiles by 25-50%.

Dynamic risk assessment, that is, assessing the risk that arises from sudden events in real-time, gives your company the power to pivot as needed at the moment and deal with the very real challenges associated with handling high-profile clients like PEPs and more.

Implement a Proven Risk-Based KYC Approach with iComply

At iComply, we know that compliance with KYC and AML legislations is essential to circumventing the rise in financial crimes across the globe and avoiding fines from international legislators. 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 AML 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 AML 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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

Nov 6, 2023

With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

Why KYC Matters in the Digital Age
Why KYC Matters in the Digital Age

Oct 30, 2023

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...

KYC for Banking – Made Simple with iComply

KYC for Banking – Made Simple with iComply

by | Apr 10, 2023 | Blog, KYC, News & Events

KYC for Banking – Made Simple with iComply

Is your banking institution set up for success and compliance in 2023?

With the financial and digital asset markets experiencing a tumultuous time after the extreme fluctuations faced during the peak of COVID-19, there’s never been a more important time to double down on your Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to ensure your organization is adequately prepared to face evolving legislation and overcome the risks associated with criminal activity.

2023 is expected to bring an increased focus on the importance of KYC efforts. As a result, banks need to be ready to pivot when needed to avoid being left behind or being found to be non-compliant with jurisdictional standards.

At iComply, we know the value of staying on top of KYC standards and are proud to partner with leaders in the finance, banking, and related securities-focused industries to provide world-leading Know Your Customer (KYC) technology. We know AML and KYC play an integral role in helping to dismantle criminal networks across the globe; our goal is to deliver a modular suite of digital KYC solutions that upholds the latest standards to keep you and your clients safe.

Below, we’ll take a closer look at some of the core basics of KYC practices within the banking industry, and why it’s integral to partner with an automated software provider you know you can trust.

A Strong Foundation: KYC Fundamentals

It comes as little surprise that the banking and financial sectors are a primary target for criminals globally. The staunch increase in financial and cybercrimes has led to them becoming a predominant source of concern amongst global legislators, and financial fraud (e.g. money laundering) remains at the top of Interpol’s list of future crime threats as of 2023 (source listed above).

While the current realities of cybercrime and financial fraud paint a bleak picture, they also impart an invaluable message: now, more than ever before, the global community faces significant and growing risk if institutions choose to ignore security protocols.

To prevent the prevalence and ease with which identity fraud, money laundering, and other white-collar crimes are committed, institutions must adhere to the core standards of KYC protocols which aim to:

  • Establish a verified customer/business identity;
  • Evaluate and accurately assess said identity’s known activities, associations, existing sanctions (where applicable), and other relevant factors; and
  • Develop a vetted risk profile based on the information above, one that allows for Enhanced Due Diligence (EDD) as needed to determine further alignment concerns like known involvement with terrorist funding, illicit activities, and questionable sources of funding.

Implementing electronic KYC (eKYC) technology and software like iComplyKYC simplifies compliance procedures and dramatically reduces the risks associated with onboarding new clients and forming partnerships with unknown third parties. Trusted software platforms like iComply also help reduce internal redundancies and streamline operations by removing the risk of manual errors, allowing your team to focus on other key factors that keep you ahead of the curve when it comes to avoiding criminal activity and fines.

Your Partner in Compliance: iComplyKYC

eKYC platforms like iComplyKYC play an integral role in helping to circumvent the many threats caused by fincrime, and aid banks and financial institutions in moving away from the risks and inefficiencies associated with manual KYC procedures. As we continue to move forward in a world with more digital banking users than ever before, partnering with the right AML and KYC software is essential for success.

iComplyKYC is proud to be a game changer in the world of compliance, offering users a truly end-to-end solution that utilizes edge computing to process sensitive user data directly on the user’s device, instead of leaving it susceptible to risk in the cloud or an unvetted third-party vendor. Our modular suite of programs is designed to be compliant with legislation from nearly 250 jurisdictions across the globe and can help your company reduce overhead, lowering the cost of KYC operations by up to 80%.

Whether you’re hiring, assessing your current customer database, or building the foundation to ramp up your operations for the rest of the year, iComplyKYC offers you unparalleled safety and security in the form of an intelligent, customizable platform that can be set up in minutes.

Don’t believe we’re truly end-to-end? Let us show you.

Chat With Us Today

At iComply, we know that the world of digital securities and compliance moves fast, and staying on top of rules and guidelines can be tricky while managing deadlines, bottom lines, and day-to-day operations. We’ve streamlined iComplyKYC to make it as easy as possible to stay compliant, screen for risks like AML, conduct Enhanced Due Diligence and implement Daily Ongoing Monitoring, all within a single platform.

Book a demo with our team today to learn more about iComplyKYC and how our platform can be used for your specific needs and applications.

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.

Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals
Navigating FINRA Compliance: 5 Key Pillars for Financial Professionals

Nov 6, 2023

With the financial sector moving faster than ever and encountering more unique circumstances due to decentralized competition at the helm, regulatory oversight has become paramount to safeguarding the integrity of the financial markets and protecting investors. The...

Why KYC Matters in the Digital Age
Why KYC Matters in the Digital Age

Oct 30, 2023

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...