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KYC Management is an end-to-end strategic process that equips an organisation with the right tools to develop and optimise its Know Your Customer (KYC) operations.
KYC Management, at its core, is a set of processes that allows financial services and money transfer platforms to confirm the identity of the organisations or individuals who opt for their service. KYC checks follow a series of mandates put forth by various financial bodies to ensure that the transaction is legal.
KYC acts as a fail-safe for a money transfer business to ensure that the customers they have extended their services to are utilising their platform in a legal and compliant manner.
The primary focus on extended KYC management is due to the rapid increase in financial crimes worldwide. Adding to the financial crime rate spike is the increased monetary value being passed daily. The number of cross-border transactions being made daily is always on the rise; this leaves vast scope for illegal activities.
KYC is the systemic approach to recognising and validating customer data through internal and external means. An efficient KYC Management system helps a business to:
KYC Management is a fundamental approach to protect any online remittance business from fraud and potential losses resulting from illegal funds or malpractices.
An efficient KYC Management System should have the following features:
Recent polls have revealed that over 16.7 million consumers are directly affected by identity thefts in the US alone; the worldwide figure is close to 98.7 million per year.
CIP should not be only treated as a strategy; it should be considered a mandate, given its significance in the remittance market. The most crucial element to successfully implementing CIP is risk assessment.
Risk assessment is an evaluation done on the both - micro and macro levels keeping the entire organisation in mind. The level of implementation is up to organisational demands. The minimum requirements for CIP are stipulated below:
Most money transfer platforms fulfil this promise; only a select few delve deeper. Evaluating all the gathered customer data is vital, and payments are enabled after the client or the consumer ticks all the required boxes.
Any money transfer platform has to check the legitimacy of the customer before transferring the money overseas. The money should not go towards any illegal cause and should be clean. The customer should pass all the checks and should not have any links to any criminal or terrorist enterprise.
Due Diligence can be broadly divided into three segments:
Several international money transfer platforms have started offering monitoring services to money transfer businesses. Monitoring services include oversight of financial transactions and accounts based on thresholds.
KYC Management is a crucial aspect in enabling a cross-border remittance business. Many software platforms worldwide have started implementing these systems as part of their package.
RemitAll Software focuses extensively on intensive identity verification by ensuring complete customer validation, including Proof of Identification, Proof of Address and Source of Funds, depending on the regulatory requirements.
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An ex-developer with a passion for writing. Skilled in Copywriting, Feature Writing, Social Media Posts. Started working as a content writer after spending 2 years with a tech giant as a software developer.
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