The KYC compliance was set up in Australia by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in 1989 to catch money laundering activities, terrorist financing, and other criminal activities involving large amounts of money. The main goal of the directive is to prevent businesses from intentionally or non-intentionally using the funds for such acts.
As such, identity verification is a vital process that helps financial institutions uncover possible crimes that can be perpetuated by opening accounts and doing dubious transactions. This policy ensures your organisation is not exposed to potential risks brought about by customer relationships bent on criminalistics acts.
The KYC compliance helps you determine where to apply due diligence from possible high-risk activities. The process of verifying customer details has been instilled in the Australian financial market, mitigating all the risks involved in exposed illegal activities along the way.
Empower Your Business by Protecting Your Good Customers
Verifying every detail of your possible customer is one right way to cushion your financial organisation from the potential effects of crimes and illegal acts. Service providers and stand-alone products by helping you achieve your investigation process, streamline all aspects of your compliance protocol.
Nonetheless, tailoring your investigation process does not just involve a clear understanding of what the requirements are. It also includes having the right set of tools to help you adapt and centralise the whole due diligence process, account onboarding, and opening.
Protect your credible customers from the effects of financial mistrust and industry sanctions. Empowering your business by knowing and understanding the background of your customers helps remove possible financial crimes committed by questionable customers and entities.
Due diligence is an essential facet of a financial firm and institution helping protect its name. It addresses pressing industry challenges of avoiding possible implications caused by accounts created for illegal activities.
Creating a Rigid KYC Compliance and Customer Identity Verification Program
With the national economy at the heels of financial organisations, creating a rigid identity verification process always falls under strict compliance to existing Australian commercial laws. Taking the help of third-party risk solutions for your customer’s identity verification is one effective way to cushion the risks.
Such entities can help you with the processing of customer information, verifying their documents, and detecting possible histories of fraud and identification anomalies. Reliable data coverage is needed from such solutions providers because independently sourcing your customer’s information from various commercial, phone datasets, government, and credit institutions gives you enormous scope.
A single platform, which is able to verify all information relating to an account or a customer opening an account. It will help your business zero-in on possible fraudulent transactions before they happen. Incorporating tools, such as blockchain verification, global PEP screening and sanctions, fraud detection, and OCR/biometrics. Allow your business to siphon all vital information relating to a customer and his previous financial histories.
The use of such tools is needed in today’s environment, given that personalities from around the world try to get hold and take advantage of the loopholes in the financial industry. KYC and all its subset processes help financial institutions uncover possible threats in the industry and their after-effects.
Such holistic techniques of uncovering possible fraud, money laundering, and terrorist financing steer clear the financial industry of the complications of the Australian law. It thwarts motive among customers and allows the financial sector to thrive in good faith.
About the Guest Author
Elena Gilbert is a freelance writer who offers to ghostwrite, copywriting and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.