The KYC process requires you to do 3 things to protect your activity:
- verify individuals applying for financial, banking, or property management services;
- monitor accounts and activities, perform risk assessment, and report suspicious transactions and deals;
- figure out the best services you can offer to every individual client.
Broadly speaking, the Ondato KYC is designed to meet two international regulations against financial crimes: Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT).
Have a robust customer identification program
The CDD process only works for clients who pose zero or minimal risk, but customers with high-risk profiles are best approached with enhanced due diligence (EDD). This process is more thorough than CDD.
In addition to the basic information required by CDD, you can also ask a client about where their funds come from, their detailed personal and professional background, and their negative media portrayals, if any. The information you gather from these inquiries will allow you to decide if a particular client is worth doing business with.
For sheer volume, automation is key
Audit requirements and compliance reporting prove challenging when dealing with large sums of money from diverse clients and sources. In this regard, you cannot rely on manual processes alone. You can integrate automated methods into your verification and authentication system through third-party or proprietary software.
Either way, your end goal is a scalable operation that can quickly respond to any changes in regulatory standards imposed by relevant institutions.
Constant cybersecurity infrastructure
When was the last time you strengthened your cybersecurity infrastructure? Remember that a system installed five years ago is far less reliable than new ones. Cybercriminals are clever enough to find ways to circumvent technologies that may be used to keep them at bay.
Up-to-date systems are crucial, so don’t neglect to give your cybersecurity landscape its much-needed regular touch-up. Improve your KYC process with new methods like cloud-based identity proofing.