Know Your Customer Checks, often called KYC Checks, are identity checks that ensure the person a business is dealing with is genuine. Companies must take a series of measures to protect themselves, their customers and their employees, and KYC Checks are an essential part of the process.
Businesses can find traits of fraud or money laundering by continuously reviewing accounts but given the ramifications of false identification and fraudulent activity, many are searching for proactive ways of avoiding both, which is what KYC Checks offer.
What Is the Purpose of a KYC Check?
In addition to verifying a person’s identity, KYC checks ensure that companies can be aware of any risks that may arise when maintaining a relationship with other businesses. KYC Checks are standard among financial institutions and companies searching for investments, as they help businesses adhere to anti-money laundering policies.
Those in the crypto sector also use liveness checks, as exchanges must conform to Anti-Money Laundering regulations. The sophisticated means of verifying a person’s identity ensures that those trading in cryptocurrency can easily meet the global KYC and AML requirements.
What Does a KYC Check Include?
A KYC check is a broad term for a series of checks carried out before a business relationship commences. Although each company often has its one iteration of a KYC Check, they often include the following.
- Photograph Identification
- Name
- Address
- Document Verification
- DBS Checks
- Credit Checks
It can also be commonplace for some form of biometrics to be in place that employs the use of liveness checks so companies can be confident that documentation matches the details of the person making the application.
How Long Does a KYC Check Take?
The time it takes to complete a KYC Check can depend on the avenues used. Sometimes, completing a KYC Check can take as long as three weeks. However, using a professional third-party agency means that KYC Checks can be completed in as little as 24 hours.
To ensure that KYC Checks are completed quickly, the correct information needs to be submitted. It can be easy to overlook some details when forming a relationship with customers, but any mistake means the process often takes longer than it should.
Why Use a Professional KYC Check Company?
Some companies can be convinced that carrying out their own screening is more affordable. However, the time it takes to carry out the task could mean it costs more in the long run. Outsourcing the job to a professional KYC Check company ensures that all KYC Checks are completed quickly while allowing the business to focus on other aspects of the company.
KYC Checks also benefits genuine customers wishing to do business with the company, as there is little waiting time regarding the outcome, meaning products and services can be made available to consumers sooner rather than later.
If your business wants to safeguard itself while also protecting other customers, then it must consider using KYC checks as part of its onboarding process.