Things To Know About KYC Authentication

 

KYC authentication becoming commonplace these days, you may be wondering if it is something that you can implement in your business. The Know Your Client (KYC) is a process to verify the identity and other credentials of a financial services user. It is a regulatory process of ascertaining the identity and other information of a financial services user.

The Know Your Client (KYC) process is very important because it helps against money laundering and prevents the financing of terrorist activities. It is a mandatory process that is required by many countries to ensure that the customers are actually who they are claiming to be. It is very helpful especially in digital onboarding in banking.

To be mandated by the law, the Know Your Client (KYC) process also helps the financial institutions in several ways. It helps lenders perform risk assessment by identifying the previous financial history and assets owned, limits fraud that result mainly due to hiding of identity and prevents money laundering and other anti-social activities.

KYC authentication also brings stability and investment to the country, as it makes the financial framework more trustworthy and less risky. Also the decreased uncertainty made possible by this technology allows institutions to lend more to customers and increase their profits.

A number of countries as well as economic regions oversee financial anti-money laundering agencies or regulators that overview financial transactions to prevent tax evasion, terrorism financing, and other anti-social activities. All the agencies are a part of the Global Financial Action Task Force (FATF), which overviews financial transactions globally.

The KYC process can be carried out for both individuals and organizations. KYC authentication is based on verification of identity and place of residence. There are various documents required for the KYC process for individuals. They include the usual documents that individuals generally use, such as driver’s license, passports, social security card/number and documents issued by the state or the federal government.

For more information on KYC authentication, visit our website at https://loginid.io/

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