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KYC and AML for Banks to Catch up With Regulations

Know your customer (KYC) and anti money laundering (AML) solutions are vital for financial institutes specially for banks as per regulatory authorities. When anyone comes to open his account in a bank, identity verification of that individual is a must to fulfil KYC requirements. To get KYC done all the required information is taken by the bank representative including source of income, document verification and biometric authentication of the individual. 

Like every other thing happening online. Online banking has also taken a lot of limelight. It gets a bit tricky to verify someone when he is not even sitting in front of you. So digital identity verification solutions play a crucial role here.  Digital KYC for banks with document verification solutions is required to verify that the provided documents as well as the person are the real deal. Advanced AI-powered KYC solutions that carry out all the verifications and scanning tasks.

At times HI (Human Intelligence) is also clubbed with AI to authenticate the individual fully. Installing such KYC and AML solutions prevent banks from falling in the pit of many financial frauds such as stolen identity and credit card frauds.  Such solutions verify the person as well as check the documents for tampering and forgery. Digital KYC solutions have been quite useful for banks while operating online. 

How KYC solutions for Banks Work?

Banks need to verify individuals for many reasons. For instance when a person wants to open a bank account online, he fills out all the requirements and can easily submit his documents by taking their picture or showing them on a webcam.

Such solutions are intelligent enough to check if the document uploaded is real and authentic. By using hologram checking technology the tampered and forged documents are detected. Moreover, using OCR technology the information from the given documents is extracted and checked against many section lists and PEP lists to know the person was ever involved in any kind of criminal activity. 

Moreover by using facial recognition technology the system can tell if the real person was present in front of the camera. 3D liveness detection feature of facial recognition technology helps to fight back any spoofing attacks like 3D mask or video streaming instead of the real person.

The face on the document picture is matched with the real face to authenticate fully.  Such KYC and AML solutions do a background check of the person against global watchlists regarding terrorist organisations and money laundering. The system lets the customer proceed only if everything is crystal clear otherwise the process is halted and request is denied.

KYC and AML  Verification for Banks:
KYC solutions are vital for banks to make sure that they are not letting fraudsters into their system. Identity verification plays an important role in catching up the criminals, Banks failing to do so will be charged hefty amounts of fines to provide a platform to such fraudsters for taking up their scams like money laundering and terrorist financing. Integrating such channels into the system of banks is totally hassle-free.  

Such solutions provide a win-win solution to both banks and customers in a way that it saves a lot of time and effort of businesses which is required to perform KYC and on other hand it streamlines the verification process for clients who get frustrated at times by long and complicated procedures.  Banks looking for a KYC service provider can take help from online identity verification service providers verify the identity of an incoming user with the help of deploying different AI based technologies such as biometric technology, address verification, digital document verification, 2FA, handwritten notes etc.

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KYC is important for banks, but they use this to ask questions they shouldn't. The banks ask questions to learn more about their customers, and this is solely for their own research. If you answer that you already have three relatively new cars in the family, the bank will take you off the list of customers they offer car loans. These are not some dangerous information, but they are personal, especially if the banks conclude that because of three children, you are not the best ""material” for a long-term loan.
You can check aml kyc of other users now on websites like covery. This will end up in safer transactions.

Edited by JanReid

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