KYC guidelines for banks detail a thorough mechanism to check the identity credentials of incoming customers but most of them do not have a setout procedure to utilize the services of a KYC service provider. But using an automated KYC software to perform document verification or any other form of identity verification can help reduce the cost as well as time duration spent on the authentication process. Safeguarding customers from identity frauds and users with fake credentials are not the only advantages of KYC, but banks can use it for implementation of stricter measures to curb anti-money laundering or AML.
AML supported by KYC checks
When we have a look at know your customer checklist that a banking organization has to maintain, we witness that all the personal information of a bank account holder is collected by banks. Starting from Legal name to date of birth and from residential address to the phone number, a banking organization has a complete identity profile of their customer. That same identity profile can be utilized by identity verification services to measure the financial risk attached to the individual customer.
Why AML compliance is important?
A large amount of AML fines are being slapped on banking organizations that are letting their banking operations and other related services to be used by financial criminals. Money laundering has attained a central position in the international law enforcement landscape and regulations have been put forward by several organizations to curb money laundering. As banks are the main source used for money laundering operations, clearly defined AML compliance guidelines have been furnished by financial regulators and law enforcement agencies.
How AML works with ID Verification?
There are many ways in which financial risk attached to a person’s identity can be detected. But the most accurate way is introduced by Shufti Pro, an AI-based ID verification service. Shufti Pro not only verifies the true identity of a person in real-time but can also assess the financial risk attached to that person’s identity. Shufti Pro has compiled a large databank of financial risk data that works perfectly with its document verification service. That databank contains information from 1000+ sanction lists and watchlists maintained by financial law enforcement agencies around the globe. It also has data from 3000+ databases organized by financial regulators of different countries. Shufti Pro performs AML background checks for every customer from this huge databank using their personal information.
A check for Politically Exposed Persons is also performed by Shufti Pro in order to ensure that only the users with no potential financial risk are registered by Shufti Pro customers. This huge databank is updated every 14 minutes so that AML background checks performed by Shufti Pro are highly accurate and protects the interests of Shufti Pro customers. An important aspect of AML compliance offered by Shufti Pro is that it is performed simultaneously with document verification or any other identity verification services provided to Shufti Pro customers.
Available in 225+ countries and with support for 150+ official languages, Shufti Pro is the most ideal solution to not only follow KYC guidelines for banks but also offer a KYC for banks solution that can detect financial risk attached to an incoming customer through AML checks. A large amount of AML fines can be avoided easily by this smart KYC service provider that offers pay as you pricing model. Its Restful API is perfect for seamless integration with pre-existing online systems or web portals that might be used to operate banking services. Mobile SDKs for Android and iOS platforms also make it a perfect solution for mobile-based banking as well.