What is KYC client onboarding?
The process of client onboarding with a 100% automated solution is what is known as Know Your Customer (KYC) client onboarding. In this process, businesses from different industries can quickly and easily verify the identity of their customers using an online form. This saves time and money for both the business and the customer. Read here all about what is KYC client onboarding and why is so important for your business.
There are many benefits to using a KYC client onboarding process. Perhaps the most obvious benefit is that it helps businesses to verify the identity of their customers quickly and easily. By doing this, businesses can avoid any potential problems that could arise from dealing with fraudulent customers. In addition, businesses can also save time and money by using an automated KYC client onboarding process. This is because businesses will no longer need to manually verify the identity of their customers.
Another benefit of using a KYC client onboarding process is that it helps to protect businesses from financial crimes. This is because businesses can use the information collected during the KYC process to help them comply with anti-money laundering (AML) regulations. By complying with AML regulations, businesses can help to prevent themselves from being used for money laundering activities.
Overall, using a KYC process for client onboarding is beneficial for both businesses and customers. It helps businesses to verify the identity of their customers while also helping to protect businesses from financial crimes. In addition, it also saves businesses time and money by automating the process of customer identity verification.
Requirements and regulations for the client onboarding process
The client onboarding process is regulated by various international and local bodies. These regulations are in place to prevent money laundering and terrorist financing. Banks, money transfer companies, FinTech, payment companies, accounting firms, telecom business, medical companies, insurance services, alcohol industry, crypto companies and other industries have to comply with KYC solutions and AML regulations.
To comply with these regulations, businesses must collect certain information from their customers during the onboarding process. This includes information such as the customer’s name, address, date of birth and nationality. In addition, businesses must also verify the customer’s identity using documents such as a passport or ID card.
Key factors when determining the customer risk level:
- Accuracy of the documents submitted by the customer;
- Business industry in which the customer works;
- Past financial transactions history.
Once the customer has been onboarded, businesses must then monitor their activity for signs of money laundering or terrorist financing. This includes looking for patterns of behavior that could indicate that the customer is involved in such activities. If any suspicious activity is detected, businesses must then take appropriate action to prevent money laundering or terrorist financing from taking place.
The client onboarding process is a vital part of compliance with anti-money laundering and counter-terrorist financing regulations. By following the required procedures, businesses can help to prevent themselves from being used for such activities.
Set a meeting with a QOOBISS specialist and find out all about what is KYC client onboarding process and about our 100% automated KYC/AML solution.