Five BASIS ID year 2020 articles that will help your business meet 2021 regulatory requirements without losing customers
2020 has been a difficult year for all of us. Humanity experienced vicious natural disasters, global pandemic, civil unrest all over the planet. Just when we thought we’ve seen it all — something even more unprecedented arrived.
A global economic downturn has driven an increase in searching for alternatives in an attempt to rescue one’s financial security through digital transformation across many sides of life and business.
The urgency with which new tech is being deployed raises many risks. Of course, regulations are getting tighter than ever.
Discover five BASIS ID 2020’s articles that will help your business meet all the regulatory requirements in 2021 without compromising customer satisfaction.
The security of financial assets is the top priority of every organization. In the retail or insurance sectors, the security is provided by the terms of the agreement, however, in financial technology (FinTech) the software itself should include the tools and processes that mitigate the risk of financial fraud.
Read on to find out the basics of building a robust anti-money laundering system.
“Often, KYC and AML are used as synonyms, but it’s not quite correct and sometimes brings confusion in business conversations.
- Governmental and international regulatory authorities are more often using AML/CTF when talking about the subject.
- Merchants, vendors, service providers, and financial institutions more often use the term “KYC obligations”.
There are risks associated with selling age-restricted products without verifying a consumer’s identity. Online sellers can run into serious legal consequences if they don’t verify the customer’s age. Age verification goes hand-in-hand with the need for KYC — a protocol all businesses must follow to assess the risk of illegal activities.
This article gives a detailed overview of the age verification software importance for online businesses.
“We all know no one takes the pop-up warnings seriously — especially those who are supposed to.
Online sellers are often under the impression that basic checks are enough to protect minors from age-sensitive products.
But, for most of the minors, the age verification box is not a barrier. One-click and they can have access to content and services they were warned not to buy. For a typical teenager, it adds to the fun.”
Financial institutions have to comply with the Anti Money Laundering (AML) and Counter-terrorism Financing (CTF) to prevent money laundering and other related criminal activity. To do so, businesses should set up an effective AML compliance program that allows a company to easily identify fraud and suspicious activity.
Check out this article to learn 5 easy steps to an effective AML compliance program.
“During the initial onboarding process, which has to include Customer Due Diligence (CDD), or during the ongoing monitoring, the organization has to look for red flags such as large transactions, spikes in activity or amounts, a big number of transactions, transactions related to gambling and jurisdictions that have a bad reputation with regards to money laundering.”
As financial services increase their popularity, criminals find new ways to launder money. In response to that, monetary authorities release new regulations. In 2021 it’s more important than ever to have an effective KYC process to stay compliant and mitigate the risk of fraud.
BASIS ID knows that creating a KYC flow might seem overwhelming when trying to balance fraud prevention, compliance, and customer satisfaction.
This article will help you get on the right path to creating a proper KYC workflow based on your risk factors.
“As Simon Sinek says: “People don’t buy what you do. They buy why you do it.” The same goes for KYC — it’s essential to start with why.
You can get just right into it, integrate identity verification software from the first google result, spend a lot of money and effort, get everything right. Eventually, you will realize that although the KYC software is working fine, you don’t need many of the features it has (which you are paying for), and on the opposite, it lacks many of the necessities.”
The two most common issues of the AML compliance program and the KYC workflow are high churn rates and poorly organised work of the compliance team. The first step to mitigating these problems is to find the bottleneck. Next, you have to find a way to resolve the bottleneck and optimise the onboarding process.
This article provides a detailed review of two BASIS ID case reports to give you some insights of how to drive your company by costs without compromising results.
“If your compliance team can’t keep up with the workload, and it’s too expensive to stay compliant, consider the following questions:
✔ Which processes can be automated?
✔ Can compliance officers view verification data and history?
✔ How long does reporting take?
✔ How does the team deal with rejected users?
✔ How long does the verification process take?”
As business and techs change very fast nowadays, staying data-informed is the key to success. Implement discovered insights in your business, share hints with colleagues, and feel free to reach out to us to get advice on compliance processes designed particularly for the needs of your company. We know the best ways to optimise the verification process for the highest cost — performance ratio, with 0% fraud tolerance and 100% customer satisfaction.
Take care and stay compliant no matter what.