A Thorough Guide to KYC Verification Solutions

As the world becomes more and more virtual by the second, the likelihood of cybercrimes increases exponentially. Proper solutions to eliminate such probable crimes must be employed to avoid potential crises for businesses. One of the primary checks for the same is Know Your Customer verification solutions. 

Know Your Customer, popularly known as KYC solution, is used to help find distinctions between credible and non-credible customers. Many countries have made KYC a compulsory procedure. Such checks and balances are being prioritized by businesses to ensure there is no chance of theft, money laundering, fraud, or embezzlement. 

What is Electronic Know Your Customer?

Electronic Know Your Customer or eKYC is an integral part of the process. The customer’s identity and address are verified using their Aadhar card through this procedure. The information on their Aadhar card is electronically verified through the eID scheme that involves biometric data authentication. This in-depth verification is an excellent way to ensure customers are credible and safe as a majority of the adult Indian population have their Aadhaar Card. Furthermore, customers can be very easily onboarded through online KYC solutions. The process is simple and uses Artificial Intelligence, hence, avoiding mistakes. 

What Documents Are Required for the KYC Process

It is only safe to presume that the Know Your Customer process requires substantial documents since it is primarily based on identity verification. Customers will be asked to properly submit documents based on their status to showcase credibility through the KYC process. 

The following are sets of documents customers must submit under different circumstances:

For Adult Indian Citizens (Residents): 

  • Passport 
  • Voter ID card
  • Driver’s license 
  • Aadhaar card 
  • PAN card 
  • NREGA card

For Adult Indian Citizens (Non-Resident Indians): 

  • Passport 
  • Copy of residence visa 
  • The passport and visa copies need to be signed duly by the Indian Embassy, foreign offices, respective banks, and Notary Offices.

To expedite the process and avoid anyone conducting an Enhanced Due Diligence process on your profile, you must ensure all the documents are being submitted correctly. An Enhanced Due Diligence process will be conducted on your profile if you fail to substantially prove that the details furnished by you are legitimate and you do not have any underlying red flags during background checks.

Why is a KYC Solution Important?

Know Your Customer processes are laid out very clearly by banks and financial institutions. They include all the details required to ensure that the customers are credible and that all the risks are considered. Businesses, especially online, are at a much higher risk of being targeted by money laundering schemes, illegal corruption methods, and terror financing. To eliminate such threats to vulnerable individuals and organisations, KYC includes processes such as Identity card verification, address verification, and V-CIP verification. Given the gravity of the situation and how wrong a situation can go without these processes, it is of the essence to ensure they are followed. To fully comply with these regulations without any gaps in methodology, it is always best to avail of identity and address verification service. If the regulations are not followed, as laid out by the respective institutions, then there can be serious consequences related to non-compliance. Additionally, it causes damage to a business’s reputation and overall standing in the industry.It is wiser to get ahead of the game and prevent issues from the get-go. Therefore, businesses should take KYC processes seriously. Automated KYC solutions utilising AI-based tools and technologies can put all KYC worries at bay. The results are faster and more accurate to eliminate all potential threats.

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By Michael Caine

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