Know Your Customer Software for AML in Different Sectors

On 3 Jun., 2022

The obligatory KYC or Know Your Customer process enables organizations to assess risks from their customers.

Know Your Customer Software for AML in Different Sectors

The obligatory KYC or Know Your Customer process enables organizations to assess risks from their customers. KYC software has helped banks and NBFCs track and monitors suspicious accounts and takes preventive measures on dubious transactions.

Counter measures don’t deprive performance, unless it’s vague and incomprehensible. Over the years, companies from different sectors, whether legal firms or logistics or banks, take interesting measures to prevent the ‘bad’ from happening. Apparently, high-tech and AI like innovations prove effectively beneficial in those preventative actions.

Know Your Customer or KYC has been an obligatory process in most banks across the globe. Indeed, different banks try to come out with hassle-free onboarding procedures to not keep the customers in waiting. However, the ambit of AML or anti-money laundering compliance is a larger one where banks need to take ‘extra’ tracking and monitoring and scrutinizing steps to prevent misuse. High-profile accounts are prevented from transacting for terror financing or money laundering activities.

Given the spate of events across the world, is it natural to do KYC? Of course, why would governments or regulatory authorities push new AML/KYC programs without giving a thought on abandonment rates? A Digital Bank Report conveys that only 19% of people abandoned online account opening due to KYC measures.

How about a fully compliant yet seamless KYC solution?

Since technology in the software world has evolved, KYC solutions can help organizations reduce their burden of compliance activities.

How can it help?

  • Reduce intrusive questions or personal information based on risk profiles.
  • Reduce onboarding time to a significantly less time than five minutes.
  • Modern identification procedures with integrated functionalities.
  • Innovative tools for verifying online transactions.
  • Customer authentication and verification for a seamless onboarding flow.
  • Digital auditing and end-to-end advanced KYC software.

Enhanced Due Diligence (EDD) has been a norm in a risk-based approach. Financial institutions pay critical attention to high-profile accounts of individuals or companies. Not only has it helped prevent financial crimes, but also fight criminal behavior.

KYC in various sectors

Know Your Counterpart in different sectors like legal & law firms, IT & engineering companies, R&D organizations, manufacturers and exporters, etc. play a defining role. Isn’t it too lengthy a process for businesses to accommodate this procedure and do businesses at the same time? While it may seem an obstacle in the first instance, but it enables due diligence and prevent any illegal transaction.

Manufacturers and exports have a robust mechanism of committing businesses in different parts of the world, but it hits a roadblock when they don’t understand compliance requirements. The United States of America swiftly empowers organizations to penalize companies that violate these compliance regulations.

Therefore, internal control programs and export compliance software help organizations to follow those compliance measures and prevent from getting penalized on violations. Has it occurred to businesses that they might be missing out on regulatory compliances and performance at the same time? We think businesses have started analyzing roadblocks more precisely than previous. However, a majority of new businesses still need to understand these challenges soon.

Author Info:-

Linqs Inc writes about Know Your Customer or KYC/AML software for Anti-money laundering compliance needs. He discusses how preventative measures help banks and financial institutions, but advanced software technology can make it seamless for onboarding needs. He further gives insights of Know Your Counterpart for businesses and Export compliance for exporters.