KYC is really a se of procedures that natural and juridical people use to obtain and confirm given data and information about their older and new customers.
The KYC procedures have become a legal obligation , in the immense majority of businesses, especially financial businesses, which must comply with the demands dictated by governments for the prevention of money laundering and financing crimes, like narco-trafficking and the arms trade.
KYC permits businesses to protect themselves, to ensure that they are doing business with legitimate people and entities. Additionally, it serves to establish that the funds that they receive, in one or more transactions, aren’t of doubtful origin.
What are the KYC procedures?
KYC begins with the compilation of personal information. This permits verification that people are who they say they are. To do this, they use national identification documents, video calls and photos. They also use a utility bill or proof of address. The level of data required in a KYC depends on the institution. In our experience, the most complicated is for obtaining an HTTPS EV for a business domain.
Some businesses execute this first part of the KYC in person; however, this is, usually a formality that is executed
online and can include a series of additional proof such as fingerprints and facial recognition.
The KYC procedures not only include recognition and verification of the person’s identity, but also the analyses of other data that allow the verifier to evaluate whether this person represents a risk for the business, for money laundering actions and financing terrorism.
Who uses the KYC?
The subjects required to execute the KYC procedures are banks and financial entities, accountants, notaries and lawyers, legal auditors, real estate agents, online game service providers and providers of cryptocurrency services.
How to use KYC
Usually, those who need to implement KYC go to consulting businesses and experts in performing these procedures. These specialists know what information they need to request and the time that it takes to verify said data.
These days there are various artificial intelligence software that streamline identity verification, all online. These algorithms are capable of recognizing and validating identification documents of every nationality, including those written in non-Latin alphabets. Through these software, businesses can obtain a notable reduction in the expense of the KYC procedures.