The banking sector has traditionally dominated the landscape of cross-border payments. A number of complexities in regulatory requirements across the world were stood as obstacles and discouraged outsiders for a long time from exploring the world. Previous decade seismic change was followed by industries including rapid technology change and pace of smartphones in the cloud laid the ground for disruption. Fast-growing startups are assisting in lowering the cost of business, claiming the turf across borders and for making send and collect money easier for both, customers and enterprises. A Singapore-based company InstaRem is democratizing payments across the world by building a ubiquitous payments network and offer seamless digital experience. However, there are regulatory considerations in the way: Anti Money Laundering (AML) and Know Your Customer (KYC) are different in each country that is challenging for some businesses to compliant. For fast-growing payments, user-friendly onboarding process and rapid expansion are crucial for companies. To receive payments globally KYC program requires some elements:
Identity theft is widespread and only in the US, it affected over 16.7 million consumers. For financial institutions, laws are more strict of customer identification because of fraudulent, They use financial institutions for money laundering and terrorist financing. It is the responsibility of every financial institution to combat these activities for global peace. Risk management is a critical element for individual accounts and at the institutional level for customer identification. An effective customer identification programme provides guidance for every individual institution but it is up to the institution to determine the level of risk that could be faced by the organization and determine clear policies to overcome risk. Gathering customer information (Name, Date of birth, Address and identification number) and verifying it is enough at the time of account opening.
Customer Due Diligence:
One of the first analysis made by any financial institutions is to determine your trust for a potential client. A critical element of customer due diligence for managing risks is protecting yourself against criminals, Politically Exposed Persons (PEPs) and terrorists who might present at risk. To make a good understanding of customer’s business activity ascertain the location and identity of the customer and define the customer type and classify their risk category while verifying or authenticating them and storing their information digitally.
It is not enough to just check your customer on the time of account opening, A financial institution must monitor its customers on an ongoing basis. Ongoing customer monitoring is crucial for low risk and high-risk profiles to monitor financial transactions and overall accounts. Monitoring depends on a business risk mitigation strategy.
Enterprises could achieve KYC Compliance with shufti pro because corporate accounts require KYC procedures as well. Process of KYC for individuals customers and corporate customers is the same but with different requirements that depend upon many risk factors such as transaction amounts and transaction volumes. Procedures and requirements for knowing a business are known as Know Your Business (KYB).