Requesting and verifying KYC documents is becoming standard practice in many industries. Previously limited to banks and financial institutions, it now applies to real estate, the loan industry, and online gambling and gaming.
This is not surprising as Ondato KYC is the backbone of the worldwide legislative effort for person verification to prevent money laundering and funding terrorist activities.
Whatever industry you’re in, one thing is certain — the more flaming hoops your customer has to jump through to get access to your service, the more likely they are to give up.
That’s the reason why companies do their best to eliminate hurdles and friction with a smooth client onboarding process.
But what happens when those hurdles are government-mandated and heavily sanctioned?
Well, then your goal needs to be to make sure you thoroughly collect all KYC documents from your clients on top of providing a straightforward onboarding experience.
In this post, we’ll show you how to request and verify KYC documents in a quick, easy, and compliant way to protect your business from criminal activity or even avoid hefty regulatory fines and penalties.
There are a few definitions and concepts to know about the whole world of KYC and Compliance. So let’s start from the beginning.
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What Is KYC?
Before we dive into KYC processes and KYC documents, it’s important to understand why (and how) those came about.
Know Your Customer (KYC) is a set of practices, laws, and regulations adopted all over the world for customer identification to fight money laundering and fraudulent activities in business.
What is Digital KYC or eKYC?
Digital KYC (also known as eKYC) is the process of collecting KYC documents and personal, financial, or historical data to verify digital identity via an online platform or software. As more and more industries fall under KYC rules (KYC for online gaming is just around the corner), eKYC becomes important because of its speed, its simplicity, and the increasing number of business transactions completed online.
