KYC Compliance Software

Businesses, especially those operating in the financial sector, are directed to stay compliant with Know Your Customer (KYC) obligations. These user verification practices enable companies to develop trust and transparency with customers and establish market competitive strategies when it comes to implementing global regulations. KYC compliance aims at mitigating financial crime, digital fraud, and underlying events leading to money laundering and terrorist financing. 

What is KYC Compliance Software?

A KYC compliance Software is a solution, either on-premises hosted at a company’s servers or one which provides cloud-based identity verification services in real-time. As part of global Anti Money Laundering (AML) efforts, businesses must employ a compliance program that performs risk-based assessment, classify them based on their risk level, and carry out ongoing monitoring if necessary. KYC compliance software ensures financial service providers and businesses are up and running with state-of-the-art policies and procedures. 

What are Key Components of the Compliance Software?

Integration

An important feature of the KYC compliance software is that businesses can acquire services with an easy API – Application Programming Interface – integration. As a rule of thumb, the service provider sends an authorisation request and a key code which the developers at the other end use to enable services. Shufti allows businesses to integrate through a single API call, allowing them to verify customers effortlessly. Apart from that, the on-premises integration feature allows increased data integrity which can be tailored as per the client’s needs. 

Security & Privacy

When acquiring and processing consumer data, service providers need to take into account data protection laws such as the GDPR, particularly if they are based in the European Union. Modern KYC compliance software incorporates global rules and regulations built around protecting customer data and privacy. These, in turn, enable businesses to maintain a high standard of regulatory stature allowing them to avoid hefty non-violation penalties, contributing to robust data security/privacy protocols. 

Data Residency

Data is the future, and keeping it safe is a top priority for businesses. Collecting personally identifiable information (PII) from customers for KYC verification comes with certain concerns, including data breaches, account takeovers and impersonation fraud. A few service providers in the market are now offering KYC compliance software that allows in-house data storage with an on-premises identity verification solution. This allows better opportunities for secure KYC compliance without exporting data outside their organisation.

Free Trial

Most KYC compliance software offers a trial of the services they offer so that customers can get first-hand knowledge of the product. The free trial allows users to experience a quick demo of the KYC run-through and how they will be able to screen and verify customers. Shufti offers businesses a 7-day free trial of its KYC and AML services, namely:

• KYC Identity Verification
• Know Your Business
• Face Verification
• OCR of Business
• AML Screening
• Video KYC 

Features of KYC Compliance Software

Compliance Management: Provides an automated and centralised platform to keep a check on all KYC/AML compliance policies and procedures. Generally, the AML officer is responsible for making sure compliance is enforced all across the organisation. In this regard, KYC compliance software is a viable approach to track progress and meet obligatory standards.   

Risk Profiling: KYC compliance software instantly screens customers against thousands of watchlists and global sanctions to perform a risk assessment. Based on a standardised checklist, customers are assigned a risk score, which makes them easy to categorise when it comes to enhanced due diligence. 

Audit Trail: It allows financial organisations to simplify workflow by automating identity verification procedures of customers, allowing them to meet KYC compliance requirements set forth by global regulators.