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Protect and Streamline Your Business with iComply’s EDD and KYC Software

Protect and Streamline Your Business with iComply’s EDD and KYC Software

by | Jan 9, 2023 | Blog, KYC - Know Your Customer

Protect and Streamline Your Business with iComply’s EDD and KYC Software

Does your organization have adequate safeguards in place to circumvent fraud and uphold evolving money laundering legislation? Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols are essential to avoid unnecessary risks and stay compliant with jurisdictional mandates; in addition, with fraudsters continuously finding ways to get around standard verification practices, Enhanced Due Diligence (EDD) has become an increasingly invaluable protection method. Designed to dig deeper than standard evaluations, EDD is particularly important when evaluating new business partnerships and assessing the risk profile of current and prospective clientele.

With 2023 expected to set a more demanding pace for compliance and additional remuneration to existing standards on the horizon out of the EU, business leaders will need to ensure the right protocols for AML practices and KYC are in place. Partnering with a robust EDD and AML software platform like iComplyKYC makes staying compliant easy. Below, we’ll discuss the importance of EDD, as well as the benefits of partnering with iComply.

What is Enhanced Due Diligence?

Enhanced Due Diligence, otherwise known as EDD, is a specific branch of foundational KYC (Know Your Customer) protocols designed to dig deeper than more standard levels of basic identity verification. EDD is essential for various scenarios, including when dealing with legal entities, Politically Exposed Persons (PEPs), known high-risk associates, etc. Common factors that may trigger enhanced investigation include:

  • Cash-intensive businesses;
  • Countries without adequate AML/CFT protocols;
  • Companies that have unclear, unusual, and/or complex ownership or leadership structures;
  • Businesses or individuals that are or have previously been subject to embargoes.

Where basic identification protocols may only be concerned with verifying entry-level details, EDD goes even further and investigates core data points like certificates of incorporation, known associates, additional financial history, and other advanced risk factors. As a screening approach, EDD is more robust and provides more detailed documentation for better threat assessment and compliance reassurance. This means that whether you’re dealing with a legal entity or an individual, your organization will get a much clearer picture of who you’re working with, as well as any relevant notes of potential risks you need to be aware of when moving forward.

Why it Matters

Beyond staying compliant with AML legislation, EDD helps to streamline your operations, avoid problematic partnerships, and makes it much more difficult for criminals to abuse financial channels. As we face an increasingly complex range of fraudulent practices, enhanced due diligence and vetted KYC protocols are one of the best ways to protect your organization, build trust among your customers, partners and investors, and solidify your brand as a leading player within your market.

EDD with iComplyKYC

At iComply, we recognize that having streamlined KYC and EDD protocols are essential when it comes to protecting your business when it matters most. Our 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. Our software utilizes edge computing and advanced end-to-end practices to process sensitive user data on the native device for optimal privacy and results that you can trust. (Don’t believe we’re fully end-to-end? Let us show you how)

Our suite of KYC products allows you to handle client and partner onboarding confidently and, best of all, can reduce the cost of running KYC protocols by up to 80%. We know that having access to the latest information is crucial to staying ahead of fraud and potential problems, which is why our platform makes it simple to obtain real-time data and updates on potential sanctions, police reports, or events of interest regarding current or potential clients in as little as 20 minutes. With iComplyKYC running your KYC, CDD, and EDD protocols, you can rest easy knowing that your team is compliant, protected, and ready to hit the ground running!

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

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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...

Corporate Due Diligence: Putting the KYB in KYC

Corporate Due Diligence: Putting the KYB in KYC

by | Jan 9, 2023 | Blog, KYC - Know Your Customer

Corporate Due Diligence: Putting the KYB in KYC

Do you know who you’re doing business with?

Corporate due diligence, Know Your Business (KYB), and Know Your Customer (KYC) protocols are essential safeguards against money laundering, fraud, and misappropriation of funds for criminal purposes. From onboarding new clients, conducting due diligence prior to a merger, and managing the transfer or exchange of virtual assets, organizations will need to verify the identity and risk factors associated with a legal entity in order to avoid costly mistakes and remain compliant with evolving legislation.

At iComply, we recognize that having a strong foundation of corporate KYC, KYB, CDD, and EDD protocols is crucial when it comes to staying ahead of fraudsters. Our modular, end-to-end KYC + KYB platform is designed to enhance and simplify processes like legal entity management, customer identity verification, and enhanced due diligence for more reliability while eliminating the headaches and errors associated with manual review. Below, we’ll explore the importance of KYC protocols for corporations, as well as the benefits of partnering with our platform.

What is KYC?

It’s no secret that criminals are becoming increasingly advanced in circumventing security measures to commit fraud. Cybercrime, money laundering, and the accidental funding of illicit activities remain some of the biggest risks facing the financial market today—with an estimated global cost of USD $5.4 trillion due to global fraudulent activity. With more business being conducted online, particularly through the rise in mobile applications and decentralized markets to exchange assets, identity verification is no longer a luxury but rather a necessity for organizations to embrace in every sector—from healthcare and telecoms to financial services and eCommerce.

Know Your Customer (KYC) protocols are designed to mitigate the dangers of unknown variables by giving you access to key information that allows you to identify, assess, and respond accordingly to the risks presented by a prospective client, investor, or partner.

At their core, the main objective of KYC procedures is to determine the following:

  • establishing a valid individual/business identity;
  • evaluating and vetting the individual/business’s activities and associations;
  • verifying whether the individual or business has been honest thus far concerning their legal status, license to operate, etc.
  • assessing a multitude of additional risks including background details, potential money laundering, and any other previous fraudulent activities.

KYC vs KYB

When diving into the world of compliance, customer due diligence, and KYC, you will often find references to “KYB” protocols. While KYB (Know Your Business) may sound different from KYC, in actuality, the main purpose is the same: to discern the necessary information to proceed with confidence in a partnership…in the context of a corporate partner (client, investor, or business partner). Though the required details may vary or, in many cases, even expand to include additional items like incorporation documentation, the overall purpose of KYB is identical to KYC, just with a slightly more specific, business-centric focus on CDD and EDD.

Making Compliance Simple

Staying on top of KYC protocols not only helps your business avoid hefty fines from international legislators, but it also gives you the best opportunity to build trust with your clients, streamline your operations, and protect against constantly advancing criminal risks.

At iComply, we know that AML regulations and best practices for compliance move quickly, and that manual due diligence processes are no longer adequately equipped to handle the needs of the evolving market. Designed with security, accuracy, simplicity, and the ability to adapt to shifting global compliance regulations, iComply’s modular suite of KYC products has you covered for your corporate KYC, CDD, and EDD needs.

Book a demo with our team today to learn more about our platform, as well as how you can streamline your onboarding and anti-fraud processes for corporate clients and partners with iComplyKYC.

DISCOVER 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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...

Uncovering the Risks of Synthetic Identities

Uncovering the Risks of Synthetic Identities

by | Dec 30, 2022 | Blog, KYC - Know Your Customer

Uncovering the Risks of Synthetic Identities

Meet “Joe Smith”, your suspiciously-good-on-paper prospective client applying for a line of credit. While many of Joe’s details seem to be tied to real documents like a valid Social Insurance or Social Security Number (SIN/SNN), address, and (of course) a glowing credit history, something seems a little…off. That’s because “Joe” doesn’t exist, and the information you’ve obtained has been compiled by talented fraudsters looking to use a synthetic identity to circumvent typical KYC (Know Your Customer) protocols for nefarious purposes.

As a highly complex and yet rapidly growing-more-common form of fraud, the illicit use of synthetic identities poses a unique risk to businesses due to the “long con” nature of this specific type of crime. Designed to go under the radar and pass base-level identity checks, synthetic identities can be used for multiple purposes including fraudulently obtaining money, creating false identity documents for travel or residency, human trafficking, and more.

At iComply, we know that the biggest key to success when it comes to preventing fraud is awareness and vigilance, made easier by utilizing software and processes that can help you identify red flags faster, more effectively, and with greater accuracy. Below, we’ll take a brief look at the logistics of synthetic identity fraud, how you can protect yourself, and why partnering with a trusted end-to-end KYC and EDD platform like iComplyKYC is one of the best forms of prevention you can access in today’s market.

What is Synthetic Identity Fraud?

Synthetic identity fraud refers to using a combination of real and manufactured (fake) personal information to create a fraudulent entity/person to commit a crime. The compiled information used can vary widely depending on the intended purpose of the new identity, but frequently includes SIN/SSNs, credit reports, known addresses, dates of birth, etc. These details are all used to “Frankenstein” a new identity that is then used to build credit or facilitate other fraudulent purposes.

Unfortunately, synthetic identities can be incredibly hard to detect outright because there is no clear victim for the misinformation to be linked; and unless your KYC system has the right safeguards in place, your team may not know what to watch out for. For example, it is not uncommon for financial institutions to be unaware that identity fraud has occurred until after a crime becomes evident, as the criminals involved will often spend months or even years grooming their fake profile to behave like a typical customer with occasional money issues (as opposed to more overt methods).

This level of masking criminal activity makes synthetic identity fraud highly dangerous and an ever-growing concern for businesses and institutions, especially as the black market for vulnerable information considers to skyrocket in value.

How to Safeguard Against Synthetic Identities

Protecting your organization against fraudulent users is not simply jurisdictionally mandated, it’s also essential for the longevity and viability of your business. Having a refined process in place to do initial KYC screening, as well as Enhanced Due Diligence where necessary, is crucial for the short- and long-term success of your business. With countless shifting variables and evolving global legislation presenting new challenges for business and institutional leaders, utilizing a vetted software platform is often the best way to make sure every detail and potential risk is covered and to remove errors commonly caused by manual review.

At iComply, we know that when vetting customers and prospective business partners, “probably right” simply isn’t good enough. Our unique modular suite of identity proofing and identity verification programs is designed to make it easy to take a closer look, get the information you know you can trust, and protect your team, your clients, and your investors from unnecessary risk. Our software can be set up within minutes, seamlessly integrating into your existing workflows to make staying up-to-date with evolving legislation simple and secure.

Learn why iComply is one of the world’s first truly end-to-end KYC solution providers, and discover how our software can help you avoid synthetic identity fraud by booking a demo and contacting our team 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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...

Stepping Up Your AML Practices in 2023

Stepping Up Your AML Practices in 2023

by | Dec 30, 2022 | Blog, KYC - Know Your Customer

Stepping Up Your AML Practices in 2023

As we ease into 2023 and reflect on the ever-evolving world of digital security, there’s no denying that fraudsters have become incredibly advanced in their approach—an estimated 90% of money laundering crimes still go undetected—making AML protocols more important than ever.

Anti-Money Laundering (AML) protocols and software have become essential in order for organizations to stay compliant with complex legislation, protect sensitive data (for both businesses and stakeholders), and streamline operations. Partnering with a robust AML software provider like iComplyKYC is one of the best ways to protect your organization and avoid costly fines from regulators while also ensuring you have the resources needed to quickly access vital information that you can trust.

Below, we’ll take a closer look at the core components that inform a strong AML process, as well as the benefit of partnering with a vetted software provider like iComplyKYC. Read on to learn more!

What Do AML Protocols Do?

The core mission statement of anti-money laundering programs and protocols lies in their name: to stop fraudulent practices and criminals from infiltrating our business practices and reduce the global harm caused by such activities in the process. Money laundering may seem like a “victimless” crime, but the reality is it has ties to much darker practices like human trafficking, terrorist funding, the drug trade, and more.

With the right protocols and practices in place, your organization can significantly lower the risk of unintentionally partnering with fraudsters, as well as be able to (re)evaluate your business relationships to build adequate risk profiles for all clients. Standard AML components include:

KYC Protocols

Know Your Customer (KYC) protocols are a must for modern businesses, from both a compliance and an operational standpoint. Having integrated tools and programs that make it easy to identify, verify, and screen prospective employees, clients (existing and new), and other individuals your company interacts with helps remove any unnecessary and often unpleasant mysteries—allowing you to securely maintain your day-to-day operations.

Customer Due Diligence (CDD)/Enhanced Due Diligence (EDD)

Similar to KYC, both CDD and EDD are dedicated to digging a little deeper and getting to know the specifics about who you’re interacting with. From previous risk factors like known associates and ties to illegal operations to current beneficial points of partnership, being able to go below the surface of your customers’ data with ease is essential to building trust with your client base while also protecting your organization from unwanted risks and penalties.

Name Screening

How do you know that the “John Smith” you’re evaluating is the same “John Smith” you need to verify? Integrated name and identity screening is a core component of AML protocols, allowing you to mitigate the challenges of false positives and accurately assign details to new individuals and entities as needed.

Transaction Monitoring

Catch potential risks before they can evolve into active problems by monitoring key transactions and having dedicated living documentation that is consistently updated. Routinely monitoring and vetting transactions is not only required by AML standards but also enables the ability to quickly spot potential identity theft or fraudulent transactions as soon as possible. Transaction monitoring is crucial for protection and efficiency and is a vital part of any AML process.

Suspicious Activity Monitoring

Finally, AML regulation requires the reporting of any activities deemed illicit or suspicious. While manual review and implementation can make it difficult to maintain updated records of client information, having a dedicated program like iComplyKYC in place can make it simple to uphold your end of the law, all while staying on top of crucial data updates necessary for the integrity and success of your business.

Though many of these general AML practices continue to be human led and initiated across the workforce, many leaders in the financial, technology, and securities sectors have come to realize that having automated and trusted software is a far more reliable (not to mention convenient) form of protection.

End-to-End AML Solutions With iComplyKYC

At iComply, we know the value of proven AML protocols and processes. Our award-winning, truly end-to-end KYC + KYB platform makes sure your business has all jurisdictional requirements covered—with the help of our modular suite of KYC products, streamlining your identification and security processes is simple. As one of the most versatile, efficient, and dependable solutions on the market, iComplyKYC is your leading choice for AML software, as well as all your KYC needs.

Book a demo with our team today to learn more about iComply’s AML solutions and discover how our platform can support the needs of your business or organization.

LEARN MORE 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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...

Protecting Digital Assets with KYC

Protecting Digital Assets with KYC

by | Oct 6, 2022 | Blog, KYC - Know Your Customer

Protecting Digital Assets with KYC

Are your KYC protocols set up to protect your customers and your digital assets? With the digital world constantly evolving and new assets entering the market, ensuring that your due diligence and identity verification platforms are up to current regulations is essential for compliance, as well as optimal performance.

At iComply, we understand the integral role Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols play in preventing fraud, money laundering, and the accidental funding of terrorists or other illicit activities. Our modular suite of digital KYC compliance tools is customizable for your specific needs and makes it easy to stay on top of changing legislation and ensure your clients have the best protection available.

Below, we’ll cover the 3 core principles behind digital asset protection, as well as the benefits of partnering with a vetted provider like iComply for your financial crime compliance needs.

Why Digital Asset Protection Matters

As more and more assets are translated into digital form, having the right protocols in place to manage who has access to what is essential. With the financial market seeing a shift towards decentralization as blockchain-based currencies like Bitcoin and Ethereum grow in popularity, many other assets have begun to shift to digital safekeeping. Common examples of digital assets that need due diligence protocols in place for adequate security include:

  • Financial assets (investments, stocks, bonds, cryptocurrency)
  • Sensitive documentation
  • Any additional asset that can be stored digitally and identified/exchanged for real-world value offline

The advent of digital acquisition and trade has led to the increasing development of regulations in major locations like Europe, with Germany introducing multiple laws and the EU as a whole looking to implement MiCA (Markets in Crypto-Assets) regulations as well. As online investors continue to look for the latest, most innovative ways to grow and protect their assets, KYC and CDD platforms must be prepared to deal with the unique demands of a decentralized customer base, as well as the ever-growing threat posed by criminals that seek to use such methods/assets for their own illicit purposes.

Core Principles of Digital Asset Protection

When it comes to protecting digital assets, there are three fundamental objectives that must be in place for companies to safeguard their clients’ interests. These principles include:

Safekeeping

Digital assets must be protected against unlawful access points and parties. Whether dealing with standard investments or emerging crypto-technology, institutions that seek to house and distribute such assets should have digital protection top of mind at all times. In this regard, regulation compliance should be seen as an entry point to protection, not just a box that needs to be checked. Protection must evolve in tandem with legislation, trends, and emerging needs of your customers for optimal long-term results.

Accessibility

In addition to safeguarding assets, a viable platform must also make them accessible as needed to their clientele. Full-scale KYC programs play a key role in ensuring that organizations are able to safely and efficiently verify the identity of those wishing to interact with their platform and engage in the exchange of goods and services in a legal manner.

Compliance

Finally, digital asset managers must ensure that every level of their institution and practice is fully compliant with any and all jurisdictional standards, from identity verification to record-keeping and everything in between. Such measures are put in place to significantly reduce the chance of fraud, money laundering, and other criminal behaviour — failure to comply can lead to hefty fines, reputational damage, and significant repercussions for your customers.

Ensure Digital Asset Compliance with iComplyKYC

At iComply, we understand the importance of ensuring digital asset platforms have the appropriate protections in place. Our modular suite of KYC products makes it easy to tailor your workflows to your requirements, including standard CDD, EDD, continuous risk monitoring, and more. With fast and efficient results you can trust, iComplyKYC allows you to focus on the ins and outs of running your business while reducing the cost of running ID verification and KYC protocols by up to 80%. When it comes to digital asset protection, iComply is your trusted source and leading choice for KYC software and electronic identity verification in the US, Canada, and the UK.

Book a demo with our team today to learn more about iComplyKYC’s range of solutions, and how our platform can be customized to fit your organization.

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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...

Common Challenges Facing KYC Protocols

Common Challenges Facing KYC Protocols

by | Sep 27, 2022 | Blog, KYC - Know Your Customer

Common Challenges Facing KYC Protocols

Do you have the right processes and protocols in place to protect against fraud, money laundering, and the many other risks that come with operating in today’s market? Know Your Customer and Customer Due Diligence, otherwise known as KYC and CDD, play a major role in protecting businesses and institutions—as well as their customers—from fraud, money laundering, and other criminal activities, as well as ensuring compliance with the many existing global regulations.

Identity verification and risk assessment are some of the best safeguards we have when it comes to stopping criminals from exploiting or misappropriating vulnerable networks, and with the help of a vetted software platform like iComplyKYC, you can move forward with confidence when establishing client relationships and protecting your assets.

Below, we’ll explore some of the common challenges facing modern KYC software, as well as the benefits of partnering with iComply.

False Positives

One of the most difficult parts of identity verification is perfecting the process and avoiding the hassle associated with false positives. While no program or protocol operates with 100% accuracy (as of yet), there’s no denying that false positives are incredibly inconvenient and costly to deal with for regulated firms. When an unsuspecting, genuine customer is falsely flagged as a risk—triggering EDD protocols due to an errant association with someone of the same name—it can cost significant time and money to properly investigate in order to stay compliant with jurisdictional mandates. Depending on your client base and what areas you serve, your organization could face the potential of numerous false positives routinely, each of which demands its own due diligence to resolve accordingly.

How do you circumvent such hassles? At present, there is no one method or program that offers a flawless performance, but implementing automated processes and partnering with a trusted KYC provider like iComply makes it easier to integrate routines that drastically reduce the time spent in review and save revenue in the process.

Find the Right Data

As any security analyst or risk assessor will tell you, not all data is created equal. In order to fully comply with global KYC and CDD regulations, your identity verification protocols need to pull the right kind of data from vetted sources. Whether you’re looking to run a basic background check on a customer applying to open a new banking account with your institution or needing to assess the risk of partnering with a Politically Exposed Person (PEP), you need to be sure the information you’ve gathered is as accurate and dependable as possible. Failure to do so can result in costly fines and drastically hinder your operations.

Did you know? iComplyKYC pulls from proven data sources and operates using edge computing to protect user privacy by conducting analyses right from the source device.

Missing Alerts

Incomplete data and/or poor processes can lead to missed alerts that leave your company and your clients open to unnecessary risks. When KYC is rushed or left to manual review, fact fatigue and minimal resources often lead to costly oversights that can have dangerous results for all parties involved. Your KYC and CDD protocols need to be able to keep up with demand without ever compromising the value and integrity of the data you gather.

Lackluster Reporting/Record Keeping

The ethos behind identity verification asserts that knowledge is power and retaining what we learn is essential for continued risk assessment and mitigation. Many KYC platforms and programs fall short where reporting is concerned, some in part due to poor practices and others to missing resources. iComplyKYC makes it easy to archive and access vital information when it matters most, with minimal delays or headaches in the process.

Rough Integration, No Future Development

KYC and digital security are constantly evolving realms, and in order to stay as safe and compliant as possible, your practices should be able to evolve fluidly with changing legislation. In addition, if businesses find themselves using multiple platforms and different software applications to try and achieve verification protocols, the results are typically just as disjointed as the KYC program is. Choosing a platform like iComplyKYC designed to seamlessly integrate with existing protocols helps to reduce errors and keep operations flowing smoothly while also ensuring you’re always on the right side of the latest standards.

We’ve Got Your KYC Bases Covered

Designed with the highest data quality and security levels in mind, iComplyKYC is proud to offer a world-leading solution when it comes to navigating KYC and CDD compliance. As one of the first providers on the market to offer a truly immersive, end-to-end experience for financial crime compliance, our robust suite of modular tools can be set up in minutes and configured to match workflows with the unique regulations of your jurisdiction, meaning that downtime is minimal and integration is as seamless as possible.

Learn how we do it by talking to our team today and booking a demo.

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.

Overcoming Challenges in Customer Due Diligence
Overcoming Challenges in Customer Due Diligence

Sep 27, 2024

Customer Due Diligence (CDD) is vital for financial institutions, but it comes with several challenges. Understanding these challenges and implementing effective solutions is crucial for maintaining robust CDD processes. This...