Power in Transparency: Why Comprehensive KYC Protocols Matter

by May 18, 2022

Do you know who you’re doing business with?

Organizations must have properly vetted security and identification processes in place to protect their business and clients, particularly to lay a solid foundation for future growth and success.

Know Your Customer (KYC) protocols have become a crucial part of the digital-age customer identification process to ensure regulatory compliance across a variety of standards—from the prevention of financial crimes, reducing instances of money laundering (AML) and counter-terrorism funding (CTF), to the protection of customer data, and more. Know Your Customer due diligence not only ensures you know exactly who you’re dealing with but also establishes safeguards to prevent accidental dealings with high-risk individuals or businesses.

At iComply, we know how crucial it is for organizations to have access to clear, transparent, up-to-date information about their partners, potential employees, and third-party entities. We’re proud to partner with companies within the finance, banking, and back-office services industries to offer an innovative, modular suite of KYC products that makes staying compliant with regulatory standards accessible, effective, and hassle-free.

Below, we’ll explore the importance of KYC in today’s evolving global financial market, as well as the benefits of choosing a vetted regulatory compliance partner like iComply. Read on to learn more!

What is KYC?

Know Your Customer (referred to as KYC) isn’t a necessarily new concept, but modern technologies have significantly enhanced the ways we can acquire information about unknown entities—such as businesses, customers, clients, and prospective employees—as well as the scope of information that is readily available during the due diligence process.

Life moves quickly in today’s digital age—your organization should be equipped with the right tools and assets to properly comply with all related regulatory standards, as well as the best tools available to manage risk assessment for the benefit of all parties involved.

At their core, KYC procedures and technologies are designed to equip you with the knowledge you need to move forward safely, giving your compliance team and clients peace of mind.

Why Does KYC Matter?

Knowledge is power, and operating with a clear understanding of all involved risks where your existing and prospective clients are concerned is an invaluable resource that saves you time and money, and helps you avoid numerous issues in the long run.

In short, if your organization deals with sensitive information—including financial details and personal account information—identity verification is a non-negotiable for data security and privacy compliance, as well as proper risk mitigation practices.

When it comes to preventing fraud and money laundering, and protecting your clients/assets, KYC technology is a vital asset that stands to benefit your business growth by providing valuable insights into and validation of a natural person (NP) or legal entity’s (LE) background by:

  • establishing a valid customer identity;
  • evaluating and vetting a customer/prospect’s activities and associations (for alignment concerns); and
  • assessing a multitude of risks including background details, risk of money laundering, risk of sanctions and judicial orders, previous fraudulent activities, and more.

Building a Foundation of Trust and Transparency

Whether you’re looking to onboard new team members, partner with reputable clients, or simply ensure you have the best compliance practices possible, KYC technology makes it easy to streamline your due diligence processes and reduce your risk, all while saving time and avoiding costly human errors. iComply is pleased to offer superior KYC and due diligence protection through our end-to-end, modular suite of identity verification tools and procedures found in iComplyKYC.

Designed with the highest levels of data quality and security in mind, iComplyKYC includes multiple layers of identity verification and real-time risk assessment tools to make sure your team always has access to the relevant information you need when it matters most.

Through the use of edge computing, the iComplyKYC platform is able to process sensitive user data before it leaves the KYC subject’s device, circumventing concerns of breaches or hacking, and enabling compliance with local data privacy and security regulations including (but not limited to) GDPR, CCPA, PPIA, and more.

At iComply, we believe in providing our banking, finance, and back-office services clients with access to robust technology tools and exceptional data quality, building trust through transparency and enabling better organizational alignment. iComplyKYC allows you to focus on the ins and outs of growing your business while reducing the cost of running KYC protocols by up to 80%, expediting your onboarding and screening, and gaining valuable in-the-moment insights about potential known risks for clients in as little as 17 minutes.

As a modular platform that can be set up in minutes and configured to match workflows with the unique regulations of your jurisdiction, iComplyKYC. Book a demo with our team today to learn more about iComplyKYC and how our platform delivers a truly end-to-end experience for your team and your end-users—all while saving you time and money.