Digital AML KYC Compliance to Streamline Business Workflow

Digital AML KYC Compliance to Streamline Business Workflow

AML KYC terms are used frequently to describe the financial regulatory requirements. While the terms are used interchangeably, both the terms have different meanings and serve a different purpose. The full form of AML is anti-money laundering while KYC defines Know Your Customer. AML is used to define different regulations and their enforcement to prevent financial crimes like the illicit financial flow for money laundering and terrorism funding.

KYC is defining the identity of the customer and ensuring their clean background to avoid fraud and financial crime. KYC AML compliance is the mandatory measures that every business, especially financial institutions must take. However, the outdated methods of implementing these measures are no longer useful and in order to keep up with the digital revolution, businesses require a more technological solution. With this blog, we will dig deep into the importance of digital AML KYC solutions and how they can help businesses in a simplified workflow.

What is the technology of AML KYC?

Software is used to assist banks and financial institutions to verify the identity of their potential customers during the customer onboarding process. The technological solution uses AI to increase the accuracy of the process. The end-user just has to submit a picture of their identity document along with their selfie and their identity is immediately verified. The technology used assists the company to save time and resources by swiftly and accurately performing the process. The majority of the companies are now choosing technological solutions to make their business operations more streamlined.

Here are a few ways discussed through which technology streamlines the workflow.

AI of the Technological Solution

The global regulatory authorities require the banks and financial institutions to make sure that all their transactions undergo proper monitoring to see if they are compliant with the KYC AML compliance. This also requires the data evaluation from different sources including the historical alerts and searching the background of the customer through public domain searches for any negative information related to the customers. A lot of time, money and human labour is used for such processes.

KYC AML compliance solutions utilize artificial intelligence making it the most suitable alternative to manual KYC compliance. The AI solution is trained on various types of documents to differentiate between authentic and fraudulent identity documents. It can immediately capture the fake or doctored document if any fraud is attempted. The AI also analyses the identity of the person against the sanction lists and the public domain for AML compliance after the identity is verified.

Liveness Check

For the KYC process, it is required to carry out the identity verification procedure. The technology has allowed banks and financial institutions to verify identities more accurately through liveness checks remotely. Solutions like face verification allow banks and financial institutions to perform the process of AML KYC compliance by verifying the identity of the individual through verifying their face.

The end-user just has to submit a picture or a video, and the facial points, 3D depth perception, skin texture analysis, lives detection are performed to ensure the identity as well as the live presence of the customer. Such a solution helps the companies to reduce false negatives and provide credible fraud prevention. Spoof attacks like 3D face masks or picture of pictures are easily captured with the help of such a solution. The AML KYC compliance solution has become even more simplified with the trend of such a technology.

Remote KYC

The trend of online shopping is booming. The pandemic has shifted the world to opt for online businesses. However, working remotely has raised concerns for businesses to perform the AML KYC compliances. The digital solution helps to not only ensure that minimal time and resources are spent on the process but also to verify the customer’s identity remotely. Real-time KYC screening has made it easier for businesses to onboard the customers and accepts the payments securely. The mobile KYC process has met all the business need and secured the online remote working culture by providing accurate, efficient, and smooth security measures

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