Why is the
KYC Onboarding process important?
KYC procedures defined by banks involve all the necessary actions to ensure their customers are real, assess, and monitor risks.
These client-onboarding processes help prevent and identify money laundering, terrorism financing, and other illegal corruption schemes.
KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification.
Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud. KYC compliance responsibility rests with the banks.
In case of failure to comply, heavy penalties can be applied.
In the U.S., Europe, the Middle East, and the Asia Pacific, a cumulated USD26 billion in fines have been levied for non-compliance with AML, KYC, and sanctions-fines the past ten years (2008-2018) – let alone the reputational damage done and not measured.