Identity theft cases are progressing at a tremendous pace in this world especially since the advent of technological advancements. A new cyberattack occurs every 39 seconds on this globe. These cyberattacks, identity theft, and data branching activities are never going to stop, but measures can be adopted to combat such illicit activities. There exist an extensive range of products out there that provide effective identity verification solutions and businesses must not ponder even twice before integrating to such solutions.
While talking of identity verification solutions and services, verification of client’s customers is something that must never be neglected. Businesses must integrate themselves with know your customer’s customer (KYCC) solutions and services to deter illegal activities.
What is KYCC?
In layman terms, Know your customer’s customer (KYCC) is basically a procedure that is incorporated for the identification and authentication of customer’s customer activities as well as nature. This includes verification and authentication of potential customers of the organization to effectively distinguish between criminals and customers. The incorporation of KYCC helps in the enhancement of risk assessment procedures and also business operations.
KYCC is the extended branch of the standard KYC process that must be mandatorily incorporated to deter the possibilities of growing risks that might possibly be hiding in second-tier business relationship i.e. (customer’s customer)
Why Do Businesses Need KYCC?
It’s high time for businesses to integrate themselves with sophisticated measures and solutions to stay competitive in this world and to deter progressive fraudulent activities. all financial infrastructures are obligated to have sophisticated processes and procedures in order to effortlessly comply with regulatory compliance.
Following are the ways in which KYCC proves to be beneficial for businesses:
- AI-powered KYCC processes and solutions help financial infrastructures to streamline their onboarding business operations. Such effective solutions can make the complete business onboarding procedure relatively quick as well as simpler by reducing the overall onboarding cost.
- Remediating organizations can assist analyze corporate client files on a day-to-day basis for risk assessment and changes with the organization’s infrastructure, beneficial owners, and executives. This also involves ongoing AML monitoring for organizations.
- There exist some KYCC solutions that provide effortless access to the updated company information for effective business verification via global registries which makes the KYC compliance process relatively easy.
- KYCC solutions with the integration of API efficiently collect data from numerous reliable resources. Businesses are only required to enter the details to have an approach to the information.
- In this modern age in which we are currently living, organizations are crawling for cost-effective, remote, and automated software for the performance of mandatory business verification checks. KYCC verification solutions are specially designed for the minimization of extra compliance time and cost.
Implementation of KYCC Measures
During the process of implementing KYCC measures, the first and foremost step is to implement the customer authentication process. An efficient and effective customer identification program can enable financial institutions and corporations the assurance of their client’s authenticity. This can be done via online identity verification. Identity verification permits financial infrastructures for the verification of their client’s customers in a fast, effective and seamless manner.
Check out: Analyze and Validate Consumer Identity With Document Verification
Most financial infrastructures don’t want their verification procedures to be long or tedious. They also don’t want to process and monitor large amounts of data. That’s why many KYC service providers, like Shufti Pro, effectively provide electronic identity verifications and AML checks for financial institutions and banks.
Customer identity verification is done through a service called document verification. This service allows documents to be digitally scanned to verify their details. Document verification uses OCR data extraction during KYC banking. It completes the process in seconds with a high rate of accuracy.
On The Whole
Consequently, there are numerous processes and technologies which are available to cut the workload as well as cost, while delivering effective and robust KYCC risk management. One potential solution is KYC compliance or KYC registries. The concept is they would pool their resources as well as share third-party registration data instead every institution performs their due diligence on their own. There already exists some initiative on this front, but it’s still early days for any final establishment in case these will become victorious.
One of the most productive solutions which are presently empowering the compliance networks across the border is electronic identity verification. Fast-growing and agile businesses in synchronized industries are incorporating electronic identity verification for frictionless, cost-effective, efficient, and accurate identification for all parties of an appropriate KYCC analysis. Tedious paper processes are a no-brainer when it boils down to enhancing KYCC compliance.
Considering the fact that the interconnection and complexity of financial relationships are expanding and deepening with the passage of time, the requirements for tracking and monitoring such relationships are also expanding simultaneously. Regulators will not accept Avoiding tax and corruption of dangerous money laundering and terrorist financing. Financial infrastructures have no room to accept the higher risk of non-compliance and fraud.
Undoubtedly, KYCC is an unstoppable trend and smart organizations are required to incorporate effective KYCC strategies to stay competitive in this world.