Things to Know Before Selecting KYC Service Provider

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Before we dive in specifics of the KYC services, we have to establish what exactly is KYC? ‘Know Your Customer or KYC is more than just the simple business practice; it’s the set of some legal regulations often aimed at the financial institutions (other businesses). Its primary purpose is making sure the customers’ activity is genuine and legitimate, and there is no identity fraud and money laundering takes place when you have kyc service provider singapore.

Why’s KYC Important?

KYC procedures are the important component for monitoring the customer risk. They’re the requirement for the effective AML compliance. Suppose the effective KYC procedure isn’t put in proper place, it will lead to the hefty fines, sanctions and public ridicule.

Know Your Customer is generally meant to address following issues:

  • Know motivation behind the customer’s activities
  • Goal is to know if the customer’s funds will be legitimate or not
  • Establish the right customer identity
  • Determine money laundering risk linked with the customer, as it helps to assess how closely the customer must get monitored by the business

How Are the KYC Services Done?

KYC are done in many different ways. The easiest way is having your customer present to show the documents & perform any relevant checks on it. The customers will sometimes asked to send the scanned copies of some most relevant documents.  However, this method opens up to plenty of forgeries and general abuse of a system, and not to mention it is really slow.

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