Letters of the Law: KYC Compliance

Know your customer (KYC) is a mandated process to identify and verify the identities of the individuals enterprises are doing business with.

Today’s organizations are required to comply with more identity evaluation regulations than ever before. Failure to abide by PATRIOT Act, Office of Foreign Assets Control, (OFAC), and Federal Trade Commission (FTC) Red Flags regulations and others, which require the review of identities presented by applicants, can lead to extensive fines and penalties.

While KYC compliance is necessary, it is important to avoid losing applicants due to a cumbersome screening process. Rigid controls that cause legitimate customers or transactions to be rejected are bad for business.

Key Components of Efficient KYC Compliance

Enterprises don’t have to choose between stiff penalties and high operational costs, or sacrifice a positive customer experience.

Efficient, cost-effective KYC compliance requires:

  • The ability to auto-verify and auto-clear as many applicants as possible, to reduce the number of manual reviews required and decrease customer friction
  • Granular insights into identity information that provide the flexibility for an enterprise to set its own rules in order to satisfy the regulatory requirements that are unique to their business

How can your institution expedite account onboarding to achieve KYC compliance and quickly move applicants on to credit and fraud screening processes?

Know Your Customer: Cross-industry Insight is Key

ID Analytics leverages the broad cross-industry data in the ID Network® – including insight into credit card, telecommunications, retail credit, online lending, and checking behaviors – to help see and know more consumers, driving higher auto-verification rates.

This broad insight into the U.S. marketplace can help your enterprise affordably address regulatory compliance requirements by reducing the number of manual reviews needed to verify consumers—lowering both your costs and the customer friction.

Meeting KYC compliance measures can be costly and time consuming. Let ID Analytics provide the insights needed to help your enterprise stay in compliance.