Banking Personal Finance

KYC Automation And AML: The Importance Of Identity Verification And Risk Assessment

Today you can’t do anything without an ID. At the bank, at the border control, and on the street, the relevant services may ask you for your passport or license to verify your identity.

The same is true on the Internet, especially in the fintech world, which includes online banks, electronic money institutions, various trading platforms, and so on.

KYC Automation And AML

The KYC Automation and anti-money laundering (AML) laws have transformed regulation in the online sphere. What is behind these acronyms, and what effect can KYC check have for your business?

Defining a KYC Automation

KYC check is the tool to get to know your customer. It is a legal procedure and standard requirements of all online banks and now it is becoming widespread in the entire fintech industry. What processes include the KYC check? The most important is customer identification.

As well the KYC is used for determining financial crime and AML. Why do we need to collect this data? This is one of the main requirements of the law system in Europe, the USA, and other countries to the Internet banking sector.

Reasons to conduct a ​​KYC check.

  1. Financial institution protection by identifying the client’s data.
  2. This service also protects the client from possible scam and data theft.

What is AML? 

Anti-Money Laundry – a tool for countering financial fraud. In general, the AML concept fights against.

  • Money laundering.
  • Weapons of mass destruction financing and spreading.
  • Financing of the terrorism.

Financial institutions use the KYC Automation and AML principle to keep track of businesses that deal in cash or have assets in cash. It is also used to monitor companies that hold money in multiple banks, transfer money overseas, buy futures, or other instruments for cash settlement.

To optimize the collection of customers` data, we recommend using KYC Automation.

Why KYC Automation from Covery?

KYC Automation will help to ensure the safety of your business, and will protect you from fraudsters. Covery has a best-in-class digital KYC check form and onboarding process for clients combined with automation functionality.

The service allows you to use pre-created forms via Apple ID, Google authentication, or mail. Covery has implemented the complex risk logic and actual PEPs lists. By choosing their software, you get:

  • Global coverage.
  • Seamless integration.
  • Full automation.
  • Compliance.
  • Ongoing monitoring.
  • Custom rules.

These are the main advantages of the Covery services, but using them you will definitely find more!

Please Share:

About the author

Nitin Maheta

Nitin Maheta is a full time blogger, providing cool and unique contents to his readers. As Nitin is very passionate about blogging and everything related to blogging.