Rising costs, lengthy onboarding processes, and poor conversion rates are all issues that can arise if KYC processes are not carried out efficiently. 

Thankfully, KYC issues can be simple to overcome when the right processes and structures are put in place. To help you learn more about how to overcome common KYC issues and challenges, we’ve put together this handy guide.

Putting proper KYC processes in place is essential if you’re looking to ensure compliance with anti-money laundering directives.

However, when they’re creating AML and KYC processes, many companies are wasting huge sums of money and countless man hours because their processes are ineffective.

Common challenges faced by firms include:

An inability to spot a change in circumstances

Wasting time and money on false positives

The easiest way to prevent any of these challenges arising is by using a class-leading AML and KYC compliance solution. By enlisting the help of a piece of software such as this, you can automate much of the process and save on man hours. Plus, you can also verify the identity of your customers in as little as six seconds.

By using a dedicated piece of software, not only can you overcome KYC issues, but you can also show regulators that you take financial crime and compliance seriously. On top of this, you can also ensure that you’re only ever asking your customers for the information you actually need, so the process won’t appear burdensome.

Due to the importance of AML policies, a number of AML fundamentals exist that businesses must follow regardless of the jurisdictions they operate in.

These fundamentals work as forms of best practice and should form the basis of a KYC compliance checklist that you follow on a daily basis. These fundamentals include:

As part of your CIP, you must identify your customers and their financial background. This process will also help you monitor their financial activities once they’ve opened an account.  

When onboarding your customers, you must ask them for several key pieces of personal information, including their full name, date of birth, and permanent address. The customer must also provide you with a copy of an identity document, so you can verify this information.

Once you’ve identified your customer, you must then calculate what level of risk this customer poses to your business. Depending on the customer, you can employ one of three levels of CDD. These are:

While customers who pose a low level of risk will be subjected to SDD as part of the onboarding process, those who pose a high level of risk (such as a politically exposed person) will be subjected to EDD processes.

Effective KYC processes don’t stop once a customer has successfully opened an account. Instead, you must monitor your customers on an ongoing basis. This will help you spot whether their risk level has changed or whether their activities are suspicious.

By continually screening your customers, you can keep an eye on their transactions and receive alerts if anything suspicious happens.

Although KYC issues can cause headaches for businesses, it is possible to overcome them with the correct planning and organization. Our top tips for overcoming KYC issues include:

AML regulations and KYC processes can be complex. Many of them also need to be followed to the letter. As a result, to make sure all staff members understand your processes and follow them correctly, you must put written policies in place. This way, all of your policies can be viewed by both staff members and regulators. Within your written policies, you should include information regarding:

What your identification processes include

What regulations you’re currently complying with and how you ensure compliance

Whether your policies have been independently audited

On top of this, you should also employ an experienced AML compliance officer who can guide your AML and KYC efforts.

A compliance officer should help you put your AML program in place, resolve KYC issues, and regularly review compliance.

Overall, the role of an AML compliance officer is to take ownership over the system and ensure that processes are followed and updated. They must also ensure that reports are filed, training is correct, and that the system is running smoothly.

As we mentioned earlier, the way you approach KYC and due diligence should reflect the level of risk that your firm faces. Due to this, you should employ a risk-based approach to customer due diligence (CDD) rather than making each customer face the same checks. This way, you can ensure that your approach to KYC and compliance is appropriate and proportional.

By employing a risk-based approach to CDD, you will receive a number of benefits. For example, you can make sure that you’re meeting your compliance obligations.

However, a risk-based approach to CDD will also help you overcome a number of KYC issues. For example, you can lower costs by only paying for the checks you need. You’ll also improve your conversion rates because customers won’t be subjected to onerous checks. 

Speak with the KYC compliance experts at Veriff

Here at Veriff, our AML and KYC compliance solution can help you show regulators that you take financial crime and compliance seriously. It can also help you comply with regulations and fight financial crime.

If you’re interested in learning more about how you can meet your obligations while making the process as frictionless as possible for your customers, then talk to the KYC compliance experts at Veriff today. 

Putting proper KYC processes in place is essential if you’re looking to ensure compliance with anti-money laundering directives. However, when they’re creating AML and KYC processes, many companies are wasting huge sums of money and countless man hours because their processes are ineffective.

Finserv

A blog about KYC issues and challenges, including common challenges for KYC compliance and tips for overcoming KYC issues.

KYC issues and challenges

Don't compromise

As the cryptocurrency industry continues to grow and mature, businesses in the industry have been asked to implement KYC processes similar to those adopted by financial services businesses. 

In this guide, we’ll cover what these crypto KYC processes involve, why they need to be implemented, and the benefits they provide. 

Cryptocurrency transactions between users are generally anonymous and take place in seconds. Due to the speed of the transactions and the anonymity provided, criminals sometimes use cryptocurrencies in an attempt to evade conventional controls relating to money laundering.  

However, global regulators are beginning to pay closer attention to crypto transactions. Now, crypto exchanges and wallet providers are being asked to address the anonymity concerns associated with cryptocurrency transactions by implementing suitable know your customer (KYC) processes.

Crypto KYC is the first step in the anti-money laundering (AML) due diligence process. When a financial institution such as a crypto exchange onboards a new customer, they must use KYC processes in order to identify and verify the customer’s identity. In carrying out the process, they must also assess the customer’s risk profile and the nature of the business relationship.

KYC is now mandatory for most crypto exchanges and crypto wallet providers because they’re defined as MSBs (money service businesses) under federal regulations in the US.

It’s thought that enforcing crypto KYC compliance will help tackle malicious activity adjacent to the crypto space, such as ransomware attacks. At present, attackers are able to leverage the anonymity provided by decentralized cryptocurrencies to evade detection.

On top of this, regulators and industry leaders also hope that the introduction of crypto KYC processes will help improve the crypto sector’s public image. This is because stronger compliance procedures could help crypto shed its perceived association with money laundering and other criminal enterprises.

By its very nature, the crypto industry is prone to problems regarding KYC. After all, the blockchain and decentralized services as a whole have been designed specifically to promote anonymity and to shun central authorities.

Due to this, many crypto firms have no idea who their customers are. Plus, many crypto buyers and traders have traditionally prized their privacy and have no desire to share their personal data with either crypto providers or the government. Instead, they feel that KYC checks are intrusive and unnecessary during the onboarding process.

However, in recent years, regulators have successfully convinced many of the world’s largest crypto firms that the current situation is unacceptable. Faced with the prospect of huge penalties and fines, even the most reluctant crypto firms have been compelled to introduce crypto KYC measures. This is partially because companies who have failed to implement effective crypto KYC safeguards have faced fines in excess of $100 million.

On top of this, the crypto market remains in flux. After all, although reputable crypto firms have now implemented KYC measures, it remains possible for investors to buy crypto without going through KYC processes. However, these exchanges are incredibly risky to use.

Similarly, around the world, crypto KYC measures vary. For example, in the US, FinCEN requires cryptocurrency exchanges to use KYC standards and also practice anti-money laundering measures to achieve regulatory compliance. However, in the EU, standards are not currently as high.

Some experts in the crypto space believe that successfully incorporating KYC into blockchain platforms would be a positive change. This is because using blockchain technology for KYC would provide:

On top of this, blockchain technology could also offer regulators a better understanding of how customers have been onboarded. If all actions by financial institutions are fully recorded and tracked, all activity data will be fully auditable. This information would also help regulators to better understand customer activity.

Plus, by using blockchain technology for crypto KYC, financial institutions will also be able to improve the customer experience by making processes more timely and efficient.

Now crypto businesses are regulated as financial institutions, they must integrate KYC processes into their anti-money laundering programs. In doing so, they must take appropriate steps to:

Collect appropriate personally identifiable information (PII) from the customer

 Acquire a better understanding of the customer’s activities

Determine the probability that the customer poses a money laundering risk

To do this, most crypto exchanges and wallet providers will follow these steps:

Step one: Collect the customer’s PII, including their full name, date of birth, and address

Step two: Compare this information to a government-issued document, such as a passport or driving license. During this step of the process, the business must also verify the authenticity of the government-issued document

Step three: Ask the customer for a selfie. This is then used to verify that the person who is providing the information is the person who is pictured on the government-issued document

Step four: Verify the customer’s identity against official databases that contain information on politically exposed persons (PEP) and sanctioned individuals

In carrying out these steps, crypto businesses can determine the risk of money laundering and financial crime involving virtual currencies for each client. If required, they can then carry out additional due diligence checks. If the customer passes these checks, they can then be allowed to access the service.

However, the crypto KYC process doesn’t end when a customer has been successfully onboarded. This is because the customer must also be monitored on an ongoing basis. This is to ensure that any suspicious transactions can be spotted and, if necessary, reported to authorities.

Although there’s some opposition to KYC in the crypto space, the process actually provides businesses with a number of benefits, including:

Crypto KYC can increase transparency and trust among customers. This is because, when all user identities are verified, customers will feel confident that their crypto exchange is taking proactive and preventive measures to protect their account and their crypto. As a result, they’re more likely to continue using the service because they trust it.

When all identities are verified and crypto exchanges know their customers, the risk of money laundering is vastly reduced. This is because vigorous identity verification processes ensure that each customer is legitimate. This then significantly reduces fraudulent activity and improves market reputation.

Legal obligations in the crypto space are continually changing and evolving. Now, crypto businesses face greater regulatory challenges than ever before.

But, by implementing robust crypto KYC processes now, businesses can stay ahead of the curve. Instead of chasing after new regulations, they can focus on increasing conversion rates, streamlining transactions, and ensuring compliance as international guidelines evolve.

On top of this, by continually staying on top of regulatory changes, businesses can ensure they’re always compliant. In doing so, they can avoid the strict penalties that can be handed down by regulators.

The cryptocurrency market is notoriously volatile. However, much of this volatility is driven by instability and the suspicious nature of some anonymous transactions. By removing anonymity from the process, crypto KYC can bring stability to the market.

Here at Veriff, we make investing in crypto safe and easy. This is because our selfie-based crypto identity verification platform provides industry-leading conversion rates and high levels of fraud prevention.

Our purpose-built solution provides global compliance. With our help, you can satisfy FINRA, SEC, and GDPR requirements, as well as enforce AMLD6 guidelines. Plus, you can verify your customers in as little as six seconds and verify 95% of your customers on the first try.

Our crypto KYC compliance experts are available to help you. If you’d like to learn more about how our crypto identity verification solution can help you meet your crypto KYC obligations, get in touch with the team today. We’d love to provide you with a personalized demo that shows exactly how we can help you meet your goals. 

Crypto KYC is the first step in the anti-money laundering (AML) due diligence process. When a financial institution such as a crypto exchange onboards a new customer, they must use KYC processes in order to identify and verify the customer’s identity. 

Crypto

A blog about crypto KYC and blockchain, including why crypto KYC processes need to be implemented and the benefits they provide. 

Crypto KYC and blockchain

Businesses don’t hire new employees without first checking that they’re right for the job. Well, just as an employer needs to thoroughly vet a candidate before they offer them a job, a business in the financial services industry must ask questions of prospective clients before they allow them to open an account. This helps mitigate fraud and lower money laundering risks. The process is known as customer due diligence (CDD) and it’s an essential part of any anti-money laundering (AML) strategy. 

Customer due diligence involves taking steps to identify a customer and check that they are who they say they are. In practice, this usually means that a business needs to obtain a customer’s name, residential address, and date of birth, at a minimum. The business then needs to ask them to provide an official government document (such as a passport), so that their identity can be confirmed and verified.

Your responsibilities regarding anti-money laundering

Customer due diligence is a foundation of know your customer (KYC) processes and AML strategies. CDD requires companies to understand who their customers are, their financial behavior, and what kind of money laundering or terrorism financing risk they present. All Financial Action Task Force (FATF) member states must implement CDD methods.

Financial institutions have a number of responsibilities regarding anti-money laundering, including devising a comprehensive anti-money laundering policy (which we’ll cover in detail later). 

However, there are a number of important reasons why financial institutions carry out anti-money laundering customer due diligence and commit time and effort towards knowing their customers. After all, carrying out appropriate customer due diligence ensures:

The organization remains compliant with the regulations and laws of the regions or markets they are operating in

The customer attempting to access the service is exactly who they’re claiming to be

Customers are not trying to commit fraud, launder money, or finance terrorism

Enhanced due diligence measures and when to use them

Enhanced due diligence (EDD) is a KYC process that highlights risks that cannot be detected by the usual anti-money laundering customer due diligence processes.

EDD goes well beyond CDD. It looks to establish a higher level of identity assurance and accurately evaluates the risk category of the customer. EDD measures vary from CDD measures in the following ways:

They’re more rigorous and robust, and they require significantly more evidence and detailed information from the customer

The entire EDD process must be documented in detail, and regulators must be provided with immediate access to EDD reports

EDD requirements call for “reasonable assurance” when calculating KYC risk. This means staff members must follow the necessary research steps and exercise professional skills when reaching a judgment

Special attention must be given to politically exposed persons (PEPs)

EDD measures should be used when dealing with high-risk or high-net-worth customers and large transactions. This is because these transactions and customers pose greater risks to the financial sector. As a result, they are heavily regulated and monitored.

By employing EDD measures for high-risk transactions and individuals, you can avoid painful fines and unwanted regulatory scrutiny. However, using these measures also provides you with a number of other benefits. For example, by capturing more information from your customers, you can offer them bespoke solutions that better suit their needs. On top of this, by properly screening your customers, you can deter financial crime and enhance your own brand reputation by preventing dirty money from accessing your ecosystem.

The importance of risk-based CDD in an AML policy

Guidance from the Financial Action Task Force (FATF) states that companies should implement risk-based CDD measures as part of their AML due diligence policies. These measures should reflect the specific level of AML/CFT risk that individual customers present.

Risk-based customer due diligence is a way for companies to balance their compliance obligations with their budget and their resource requirements. Plus, by ensuring that checks aren’t too onerous, companies can also ensure that the customer experience is preserved.

With a risk-based approach to CDD, a company can deploy faster and more efficient CDD for low-risk customers, and more enhanced due diligence (EDD) for high-risk customers. An effective CDD process for customer onboarding will follow all of these steps:

Prior to starting a relationship with the new customer, a company should establish the identity and business activities of the individual involved

Once a customer has been identified and their identity has been verified, the company should categorize the level of risk this customer poses. This should then be documented somewhere, so it can be used for future regulatory checks

Now a customer’s risk category has been determined, the company should determine whether EDD measures are needed. If so, these should be carried out before a customer accesses a product or service

These checks are simple to run when you enlist the help of an AML and KYC compliance solution. Thankfully, with the help of our anti-money laundering compliance tool, you will find it easy to verify exactly who your customers are and fight fraud.

Once you’ve verified a customer’s identity, you can then screen global sanctions and PEP lists in order to ensure this person is legally allowed to access your services. Following this, you can also screen the customer against negative information and news to help assess their potential AML risk.

Once onboarded, you can also monitor your customer on an ongoing basis and get notified if anything changes.

Create and follow an anti-money laundering (AML) policy

The exact AML due diligence policy you’ll need to create will depend on the type of business you run and the regulations and laws in the regions or markets you’re operating in. For example, in the EU, companies must comply with the Anti-Money Laundering Directive. However, firms in the US must make sure they comply with the Bank Secrecy Act.

However, all AML compliance policies contain the same elements. Your AML due diligence policy should contain:

An effective system that helps you identify and report suspicious activity

An ability to identify high-risk customers

A system for monitoring customers on an ongoing basis

A compliance officer who leads your efforts

A series of internal practices that help you meet regulatory compliance

Let’s look at some of these factors in greater detail.

A customer’s risk profile will likely change during their time with your business as they move jobs, change locations, and earn/spend more money. As a result, you need to monitor each customer on an ongoing basis. This means you should continually screen them against PEP watchlists, global sanctions lists, and adverse media. After all, if something changes, then you need to be aware before they begin to exploit your business.

Your AML efforts should focus on your high-risk customers. You need to be able to quickly identify who these people are, and receive notifications if one of your previously onboarded customers moves into this category.

You should also regularly assess the AML risk that’s associated with your business. There’s no prescribed way of doing this, and you can decide for yourself how you carry out the risk assessment. However, you should document the risk assessment and update it regularly.

Your risk assessment may be quite basic or incredibly sophisticated. This will depend on the size and structure of your business, the range of activities your business carries out, and the nature of the products and services it supplies.

When assessing the risks that apply to your business, consider the following factors:

The products you sell or the services you offer

Your delivery channels and payment processes, for example cash over the counter, electronic transfers, or wire transfers

Where the funds of your customers come from or go to

Once you’ve carried out your AML risk assessment, you need to put policies, controls, and procedures in place to reduce any money laundering risks that you’ve identified. You also then need to monitor your business on an ongoing basis to make sure your controls are effective.

When appropriate, you should also get your AML processes, procedures, and risk assessments independently audited to ensure that there aren’t any weaknesses.  

On top of this, you need to keep a record of all anti-money laundering customer due diligence measures that you carry out, including:

Customer identification documents that you’ve obtained

By keeping records, you’ll be able to show law enforcement officials and regulators that you have complied with regulations. If you’re audited or there’s an investigation into one of your customers, you’ll be expected to hand over all of this information promptly.

As part of this, it’s vital that you develop and implement internal guidelines regarding information sharing within your organization. You should make due diligence your focus point, assign clear roles, and report any suspicious activities immediately.

Depending on the exact nature of your business, you may also need to monitor customer transactions on an ongoing basis. This way, you can see whether a customer’s activity is consistent with their risk profile. If it isn’t, you’ll need to report the transaction(s) immediately.

If required, you may also need to file certain reports with regulatory bodies. In the US, for example, if a customer attempts a currency transaction of more than $10,000, then a bank must file a currency transaction report (CTR). Alternatively, if a bank believes that a customer’s activity is suspicious, then it must file a suspicious activity report (SAR).

This means your business must have the ability to handle and quickly expose activities related to money laundering, such as finding fake data or abnormally big sums of money deposited into a particular account. A system or a piece of software can help you with this. Some of these systems can also file reports automatically.

In order to oversee your AML policies and ensure that you’re compliant with the latest regulations, you should appoint an anti-money laundering compliance officer. This individual is then responsible for overseeing the development and implementation of your AML program.

The AML compliance officer is responsible for the program’s implementation at an institutional level. They should focus on the internal systems and controls that their institution has put in place to help detect, monitor, and report money laundering activities to the authorities. Their job is to ensure that their institution is not exposed to criminal risk and does not inadvertently facilitate financial crime.

The AML compliance officer is also responsible for ensuring that employees are aware of their company’s AML policy and that they have received training about this. Training is particularly important in departments where staff come into direct contact with clients, as improved knowledge gives them the insight required to spot suspicious activities.

Speak with the AML screening and compliance experts at Veriff

If you run a financial institution, then having proper anti-money laundering customer due diligence processes in place is vital. Thankfully, our AML and KYC compliance solution can help you fight financial crime and show regulators that you take financial crime and compliance seriously.

If you’d like to hear more about how our solution can help you, then talk to our compliance experts today. 

Customer due diligence is a foundation of know your customer (KYC) processes and AML strategies. CDD requires companies to understand who their customers are, their financial behavior, and what kind of money laundering or terrorism financing risk they present.

None

A blog article about anti-money laundering customer due diligence, including the importance of KYC processes and AML strategies.

Anti-Money Laundering Customer Due Diligence | Veriff.com

A blog about anti-money laundering customer due diligence, including the importance of KYC processes and AML strategies, what enhanced due diligence involves, and how to implement a successful due diligence policy.

Anti-money laundering customer due diligence

Don’t compromise

AML Screening

An entity wanting to provide financial services, in addition to other regulatory requirements, needs to implement an AML and KYC program to protect itself against fraud and increase the level of security against funds being used for illicit activities. Of course, it is mandatory for financial service providers to comply with regulations, and they’re subjected to a range of different regulatory penalties if they fail to do so. That’s why it is essential to have a clear understanding of what anti-money laundering (AML) and know your customer (KYC) mean in real terms, and learn about the key differences between the two.

These terms are commonly used in the same context, but they mean different things. The significant difference between these two terms is that KYC is a specific process which takes place, upon fulfilling certain conditions (e.g. establishing business relationships, conducting an occasional transaction that exceeds certain amount, etc.), whereas AML is a entire set of procedures and processes aimed to combat money laundering and financing of terrorism, which can include KYC. This is the process of obtaining the information about the customer from a reliable and independent source, verifying it, and determining the risks from the establishment of a business relationship with said customer. The KYC process is used to ensure that entities obligated under the AML framework have sufficient knowledge about their customers and certainty about their identity. AML, on the contrary, can be described as an umbrella term for the entire set of regulated mechanisms and procedures that has to be implemented by a variety of financial actors to combat money laundering and financing of terrorism

In this article, we’ll tell you more about both AML and KYC programs, talk in-depth about the key differences, and explain the relevant processes, requirements, guidelines, and tools. 

AML refers to the activities that financial and credit institutions, and companies in other fields, such as gambling providers or lawyers providing specific services, perform to actively monitor clients and prevent financial crimes. The anti-money laundering process helps prevent a wide range of illicit activities such as money laundering or financing of terrorism. Companies, in any case, need to take these measures in order to avoid the potential aftermath of regulatory action taken against them.

The goal is to implement specific regulatory provisions to prevent illicit financial activities by addressing the risk factors inherent to the service, product, or the customer of the company. The AML framework consists of numerous elements - among these are risk assessment of clients, risk management systems, KYC (or customer due diligence) programs, and relevant reporting obligations. It is particularly important for the companies exposed to higher risks of financial crimes to implement an effective anti-money laundering compliance program to avoid facilitating monetary crimes and ensure regulatory compliance. The system should be comprehensive, detailed, regulation-specific, and well-planned. 

We can define KYC as the process of obtaining and verifying a customer’s identity against independent and reliable sources to protect an entity against various risks of financial crime. One of the steps of this process requires potential customers to provide credentials, such as identity documents, to prove that they are who they claim to be. For example, financial institutions may require individuals to verify themselves before opening an account to ascertain their identity. This allows companies to make sure that their services are used only for lawful purposes and to be able to assist relevant authorities throughout an investigation when any issues occur.

Besides preventing crime, KYC processes help banks and other financial service providers understand their customers, improve services, and effectively manage risks. Hence, it is vital for financial institutions to correctly implement such procedures to minimize the chances of aiding any unlawful financial activities. The financial institutions are encouraged to consult different stakeholders, both internal and external, to understand their specific regulatory obligations with regards to the KYC procedures. 

The main objective of the AML framework is to prevent criminals from easily accessing financial systems with the intention of laundering funds or conducting other financial crimes. The overall process aims to implement specific regulatory provisions to prevent illegal activities, mostly related to the financial system, and to avoid the usage of such a system for laundering funds. KYC, on the other hand, is one of the core elements of an AML framework as explained earlier. By obtaining the information about the customer as well as verifying their identity, it aims to prevent criminals from using a specific financial service for their unlawful activities. 

There are various components that help companies adjust their AML and KYC processes to suit their needs. An excessive library of regulations, opinions of supervisory authorities, and guidelines, have been issued by the financial supervisors to help companies to prevent financial crime. Let’s take a look at these components and talk about the major differences between AML and KYC systems in depth. 

In order to understand these processes, it is important to know about the risks associated with Money Laundering. This criminal activity can produce a massive negative impact on society, companies, and individuals. That’s why businesses worldwide must strive for compliance with money laundering prevention practices. 

AML practices put procedures and systems in place that prevent criminals from being able to easily access financial products and services. Upon correct implementation of such systems, it is almost impossible to hide the illicit origins of money within transactions. One of the most important components of the AML system is the KYC process. Companies are obligated to establish their customer’s identities and verify them before providing services or products. 

During client onboarding, AML-obligated companies need to identify and verify the information on their customers to complete the procedure. According to the regulations, companies must take extra steps when the relationship with a customer has numerous higher-risk factors, in order to prevent circumvention of money laundering systems. They should actively monitor their customers’ behaviour with regards to the usage of their services. However, in certain cases, publicly available information may also give grounds for suspicions, and institutions must report suspicious activities when they occur, in accordance with the relevant regulatory requirements. 

The KYC procedure is a mandatory step during this operation. It is essential to identify a client and verify their identity when providing services to them. This obligation helps companies fight fraud and avoid penalties from regulators. Businesses must ensure that they have a proper identity verification system set up, capable of verifying individuals using their ID documents and maintaining a track of high-risk customers to take actions when the need arises. 

Different countries have different AML and KYC regulations for banks, and other credit and financial institutions to be considered compliant. Generally though, these steps are quite similar to each other because they’re based on the same practices. Companies at risk of financial crime are required to implement an anti-money laundering program in order to avoid facilitating monetary crime and ensure compliance with the relevant regulations. The primary goal of these regulations is to detect, and respond to, the risks of money laundering and terrorism financing, thus preventing both.

On the other hand, we can describe KYC compliance as a regulatory obligation to develop customer identification processes, verify the information obtained about the customers on the basis of trust-worthy sources, as well as identifying and addressing the risks related to a particular product and customer. Consistent and effective application of the KYC procedures forms an integral part of the compliance with AML regulations.

There are several tools that help companies be compliant with AML and KYC regulations worldwide. For example, here at Veriff, we offer a full-stack AML and KYC solution. The core components are Identity Verification, checking PEP & Sanctions databases, considering adverse information & media, and ongoing monitoring. 

Using these tools you can ensure that your customers are who they say they are, and fight identity fraud effectively. Our verification engine makes automated decisions in a matter of seconds, which can help companies run their operations smoothly. Veriff also allows developers to deploy the end-to-end compliance technology with a single integration.

Cryptocurrency is a solution for many people worldwide to have cheaper and faster international transactions. Unfortunately, this is not the only reason why people are getting involved in the growing industry. The crypto sector has also enabled criminals to launder money and fund terrorists in an easier way by being a product that strongly favours anonymity. 

Regulatory bodies have been on a quest to address money laundering issues in the crypto industry that would help combat it, while not limiting the digital nature of the service. Previously, only crypto asset exchanges and custodian wallet providers have been subject to relevant anti money laundering regulations, yet in anticipation of upcoming EU-wide AML Regulations, more and more countries are subjecting all crypto-asset service providers to abide by  AML provisions.

Here at Veriff, we want to make it easy for companies to connect with honest people. Take a look at our full-stack AML & KYC Compliance solution that can help you fight financial crime effectively. It’s easy for developers to deploy Veriff’s end-to-end compliance technology with a single integration, backed by industry-leading support and account management. 

What do they mean? And what’s the actual difference? Discover just that in our guide, which looks at what they do, how they work & how they can help you.

What do they mean? And why are they crucial to understand? Discover just that in our guide below, which looks at what they do, how they work & how they can help you.

AML vs KYC - what do they mean & what’s the difference? Discover just that in our guide, which looks at what they do, how they work & how they can help you.

AML vs KYC - What’s the difference? | Veriff

In KYC Learn, discover a range of educational content about the most pressing compliance issues, brought to you by Veriff.

KYC Learn is your go-to source for deep dives into the world of know-your-customer (KYC) compliance. Our articles provide insights to help your business.

KYC Learn

Latest Resources

KYC issues and challenges

Crypto KYC and blockchain

Anti-money laundering customer due diligence

AML vs KYC - What’s the difference?

Products

Solutions

Resources

About

KYC Learn

Latest Resources

KYC issues and challenges

Crypto KYC and blockchain

Anti-money laundering customer due diligence

AML vs KYC - What’s the difference?

Get the latest Veriff updates - subscribe to our newsletter

Products

Solutions

Resources

About