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A small account can also be opened with one of the following documents, which are considered FinTech applications “officially valid documents” (fintech applications), depending on the activities in which they are involved. The type of KYC document required for companies and other legal forms may depend on the specific legal form of the company. For example, if it is listed on a regulated market, how many partners it has and if it is a trust. In addition to the unique ID, the following examples illustrate the types of enterprise KYC documents that may be required: It is important to note that the same document cannot be used to confirm both the identity (POI) and place of residence (POA) of the customer. Thus, at least two documents are required for the KYC process. KYC stands for “Know Your Customer”. KYC is a set of documents necessary to establish a person`s identity. In general, photo proof of identity and proof of address are the two basic mandatory KYC documents required to establish identity at the time of opening a bank account, term deposit, mutual fund, insurance, etc. Financial institutions may also require you to provide proof of income before opening a bank account, issuing a credit card, or issuing an insurance policy. KYC checks are carried out through an independent and reliable source of documents, data or information. Each customer must provide credentials to prove their identity and address.

KYC regulations have profound implications for consumers and financial institutions. Financial institutions are required to follow KYC standards when working with a new customer. These standards were introduced to combat financial crime, money laundering, terrorist financing and other illicit financial activities. The difference between AML (Anti-Money Laundering) and KYC (Know Your Customer) is that AML refers to the framework of legislation and regulation that financial institutions must follow to prevent money laundering. KYC is more specific and refers to verifying a customer`s identity, which is an important part of the overall anti-money laundering framework. Napier uses its intelligent compliance platform to bring together disparate third-party KYC and AML systems. The platform aggregates data from KYC documents and all third-party flows with data from transaction monitoring systems to create a more consistent view of customers and their risks. More and more identity documents now come with a biometric NFC chip. With the NFC reading functions of the smartphone (if any), we can also read the information of the document and check if the chip of the document has been tampered with. This technology offers the highest level of security when inspecting documents. KYC documents are generally divided into two different categories: Most documents usually do not have to be more than three months old³ to show that the address is up to date.

Here are some examples of powers of attorney commonly accepted around the world: Most identification documents have a line of machine-readable code (MRZ). We extract the information and perform various tests in the ZMR itself. We then extract more information from the rest of the document, called the Visual Inspection Zone (VIZ). However, it is not enough to extract information from the document, we also want to make sure that we are dealing with a genuine identity document and not a fake one. To assess the authenticity of an identity document, we analyze hundreds of different key visual features and perform various security checks. With PXL Vision, you can tick all of the above. Our solution is capable of extracting data from a variety of identity documents, verifying the authenticity and validity of the identity document and capturing the customer`s facial biometric data. It also compares biometrics and identification document to validate the client`s identity. Of course, our solution is scalable and cost-effective for any business (saving up to 92% of total cost of ownership compared to other solutions). Finally, our solution offers a simple and seamless user experience. PXL Vision`s identity verification platform may implement an API from another service provider to perform POA verification.

In Switzerland, for example, where PXL has a large customer base, Swiss Post uses an API to check POA documents. KYC regulations have become an increasingly critical issue for almost every institution that interacts with money (i.e. almost every business). While banks are required to comply with KYC to limit fraud, they also pass on this requirement to the organizations they do business with. KYC is required for financial institutions dealing with customers when opening and maintaining accounts. When a company onboards a new customer or when an existing customer purchases a regulated product, standard KYC procedures generally apply. This involves verifying a client`s identity using documents, including a national identity document with a document reader and advanced document verification software. A Know Your Customer (KYC) document refers to formal documents such as a passport or utility bill that can verify a customer`s identity and address.

Applying for and verifying KYC documents is a mandatory part of customer due diligence for regulated firms. For B2B companies, KYC is also an acronym for Know Your Client. The KYC documents considered acceptable vary depending on the jurisdiction in which the KYC process is conducted. Some of the generally accepted documents are listed below. Napier`s intelligent compliance platform includes the following products, which are also available as standalone solutions: In the financial sector, KYC documents are a regulatory requirement applied worldwide. If you`re performing a manual POA check for your business, here are some tips for properly checking documents: Obtaining the appropriate KYC documents from customers during onboarding is an important KYC process. List of documents commonly accepted as standard proof of identity: Identity theft: KYC helps financial institutions provide proof of a customer`s legal identity. This can prevent fake accounts and identity theft through forged documents or stolen identity documents.

The submission of KYC documents and the verification process of these are part of the AML framework, which banks and financial institutions are legally required to follow. AML`s goal is to verify with a high level of certainty that customers are who they say they are – and that they are unlikely to be involved in criminal activity. The two basic mandatory KYC documents are proof of identity with photo and proof of address. These are necessary to establish identity at the time of opening an account, such as a savings account, term deposit, mutual fund and insurance. The FATF identifies the following common examples of digital identity verification that can be used as part of the KYC procedure: In order to comply with anti-money laundering regulations, a customer must prove their identity by providing KYC documents that provide proof of name and address. Similar rules also apply to companies and other legal forms. For individuals, proof of income may also be required when applying for certain products/services. The following examples of KYC documents show acceptable forms of proof and identification: A digital identity verification process allows a bank to automatically capture customer demographics that can be integrated with enterprise systems such as CRM to: (Small accounts remain operational for an initial period of twelve months, then for a further period of twelve months if the holder of such an account proves to the bank: that he has one of the officially valid documents within twelve months of the opening of the said account, all the provisions of relaxation relating to the said account to be reviewed after twenty-four months) According to the law, KYC is required for financial institutions to establish the legitimacy of a customer`s identity and identify risk factors. KYC procedures help prevent identity theft, money laundering, financial fraud, terrorist financing, and other financial crimes. Failure to comply can result in severe penalties. The Financial Action Task Force (FATF), the global watchdog for money laundering and terrorist financing, says verifying a customer`s identity against reliable and independent documents must be carried out as a preventive measure to combat money laundering and terrorist financing.

Financial institutions are responsible for developing their own KYC programs. However, anti-money laundering legislation may vary by jurisdiction or country, meaning that financial institutions must develop KYC procedures that comply with individual anti-money laundering standards. If fully automated checks fail, there are steps to manually verify identity documents. It depends on the security requirements of our customers or the applicable regulations. PXL Vision has developed an easy-to-use tool called PXL Ident that guides our clients` back-office staff through a simple manual verification process. Financial institutions must verify that this information is accurate and credible through documentation, non-documentary verification, or both. PPP, SMEs and KYC challenges (pyments.com, 16 October 2020) Banks can refuse to open an account or terminate the business relationship if the customer does not meet the minimum KYC requirements. Information from a consumer reporting bureau or public database KYC stands for Know Your Customer and is a standard due diligence process used by financial institutions and other financial services firms to assess and monitor customer risks and verify a customer`s identity. KYC guarantees that a customer is who they say they are. Proof of address must be in the person`s name and issued within three months.