KYC, KYB & KYT Tying the Loops for Identity Verification

To combat the growing trend of fraudulent activities, businesses are adopting reactive measures to put a halt on the malicious activities that cost the business a lot. Identity verification solutions can help expose fraudsters and scammers.  Authentication of legitimate customers in an effortless and effective manner should be the goal of any business. The technical solutions must provide innovative solutions to identify and verify each customer while providing a better customer experience. Identity verification can be completed in mere seconds customers can proceed to transactions. KYC solutions are to authenticate any customer before onboarding him. KYB is identifying fully the business you are about to deal with. Whereas, KYT means to have a stringent check over the transactions happening from your platform. We’ll see in detail how these solutions help any business to fight back frauds.

An Insight to Know Your Customer:

The KYC process for businesses to verify the customers at the time of onboarding. With strict regulations coming out, KYC isn’t limited to the verification of the customers only, instead, it is now to check the customer behavior to trace and tackle for suspicious activities and illicit transactions. Generally, in the KYC process, the customers are required to submit their identity documents and some other information. The team of analysts manually verify each document and assign a risk factor to the customers based on the predictions from the data. Relying upon the predictions and risk factor, the organizations decide whether to onboard customers or not. It is impossible to eradicate fraud once and for all as it is like a weed that grows wild and cannot be erupted. AI-powered solutions using hybrid technology like KYC is assisting the businesses in recognizing and fighting against fraudsters. 

 

A Deep Dive in Know Your Business:

 

KYB process is to check id the organizations are dealing with authentic business entities or just the shell companies present on papers only. It saves businesses from trusting the wrong businesses for partnerships or deals. AML checks and proper document verification is mandatory by the regulators when dealing with foreign entities. With the help of digital document verification of the top management through official identity documents and Anti Money Laundering Checks business, verification can be performed in a matter of seconds.

Digital KYB can determine the true identity of a verifying business and can also check for the financial risk attached to that person with AML Compliance solutions. With Anti Money Laundering services businesses can check the involvement or presence of any official of the company in any watchlist or financial risk database. 

All About Know Your Transactions:

Know your transaction KYT is the process to monitor all the transactions for banks and financial institutes having complete data-centric information about the transactions done by the customers. There are major financial transactions happening on the customer account to name a few:

  • Cash Transactions(Domestic)
  • Trade Finance Transaction
  • Card Transactions
  • Cross Border Transactions
  • Remittances( Inwards and Outwards)
  • Bills & LC Transactions.

The main purpose of having a check and balance of all the transactions is to identify when any suspicious transaction takes place to trace money laundering, terrorist financing or any other fraudulent activities. Businesses have to pay a hefty amount of money as fine if their platform is being used for any such illicit activity. KYT  is a process to have a proper check to avoid falling in any such fraudulent charge. 

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