This article is the first in a series that will be exploring some of the features that make KYC-Chain stand out as an optimum end-to-end workflow solution for companies’ Know Your Customer (KYC) and compliance needs.
For this installment, we’ll be taking a look at KYC-Chain’s individual screening capabilities such as Identity verification, Document Authentication, AML screening and risk scoring.
Over the next few weeks, we’ll also be releasing articles covering how KYC-Chain can be used for crypto wallet screening and corporate risk scoring.
Individual Screening: Expanding Regulations and Urgency
KYC-Chain’s individual screening features are particularly relevant to a wide range of companies seeking to verify the identity and assess the risk levels of individuals they onboard as customers or provide services to.
Our end-to-end workflow solution allows for true frictionless onboarding of customers while remaining compliant with global KYC/AML regulations.
Global Anti-Money Laundering (AML) rules and financial regulations – such as those set by the Financial Action Task Force (FATF) have expanded in scope beyond traditional Financial Institutions (FIs).
They now affect Virtual Asset Service Providers (VASPs) such as fintech companies, neobanks, crypto exchanges and brokerages and DeFi providers. In most jurisdictions, these companies now need to conduct robust KYC on individuals they onboard.
So, if you’re a company that needs to be implementing KYC/IDV as part of your Customer Due Diligence (CDD) and onboarding process – or just simply want to be confident that your customers are who they say they are – then this article will show you why KYC-Chain’s individual verification capabilities can be the solution you need.
Identity Verification
KYC-Chain can be used to authenticate ID documents effectively and verify users with unparalleled global coverage. We scan for visual authenticity, image integrity, and document data validation.
Added to this, KYC-Chain also offers some unique features for ID document verification. Algorithmic and digital tampering detection checks provide a 40-point likeliness score to spot fake pictures and forged documents, which allows for a quick determination of whether a submitted document is genuine and legitimate, as well as if it is still valid or expired.
This ensures high-quality and consistent data collection, and can be used as a tool for scaling up KYC tiers according to your company’s varying compliance requirements for different trading/investment levels.
Using Optical Character Recognition (OCR) Extraction, we can automatically extract data from identity documents from the document images uploaded by users.
Biometric Scoring allows KYC-Chain to compare identity document photos to a selfie picture captured in real-time during the onboarding process, to provide a likeness correlation score.
Enhanced Due Diligence (EDD) and ID Verification
In some instances, EDD for ID verification is required in order to ascertain the validity or authenticity of submitted documents.
KYC-Chain can be used to verify individual data elements such as full name, address, DOB, passport and ID card numbers. This data is checked against actual government sources such as India’s PAN card database, China’s National ID card database and Australia’s DVS service.
Additionally, KYC-Chain offers the unique capability of checking the data of ID documents, and can match residential addresses to an individual’s name on government databases.
AML Checks
KYC-Chain searches for both individuals and corporate entities against best-practice AML standards and sanctions lists.
KYC-Chain keeps live API integrations to government databases and global watchlists to perform sanctions screening, politically-exposed-persons (PEP) identification, and adverse media checks or screening.
These databases are scanned for updates every 24 hours, ensuring real-time and current AML compliance tailored to your jurisdiction.
By utilizing fuzzy matching with a user’s name, DOB, nationality and other criteria, KYC-Chain is able to triangulate and drill down on potential matches on watchlists. This reduces false positive rates and eases the workload of compliance teams that are sent higher-risk applications for further review and EDD.
Risk Scoring
KYC-Chain can be set up to conduct risk scoring of both individuals and corporate entities. This feature combines both automation and manual processes that allow our partners to onboard end clients based on their risk score.
Working with our clients, we create a risk scorecard using their own criteria for evaluating risk, which is often referred to as a risk assessment matrix.
The risk scorecard ranks different factors according to the specific risk levels they present to the onboarding company – for example, the country or geographical region of a potential customer, or external risks such as their presence on a sanctions list, status as a PEP or adverse media hits.
During the individual onboarding process, these risk checks will be automatically triggered, and our system will use the values on the scorecard to provide a risk score for each individual ranging from 0 (low risk) to 100 (high risk). A company can then use a risk-based approach by determining the risk threshold that qualifies potential customers for EDD by their compliance team.
A unique capability of KYC-Chain’s risk scoring feature is added pre-screening, which can check if a user has already registered for a service previously, in order to prevent sybil attacks. If a user passes the screening and is confirmed as a new entry, then the risk scoring process can start.
Companies running IDV/KYC/AML checks are supported by our flexible workflow solution, which is a case management platform for in-house compliance teams to review dashboards, KYC applications and their status.
By connecting our web-based app or API to their cloud storage, companies can retain complete control of their customer data, while providing a streamlined customer experience that is highly flexible and easily scalable.
Taken together, these features can all provide companies with peace of mind that their KYC compliance requirements and needs will be met at every stage of their business’ growth.
Are you looking for a cutting-edge, seamless and effective automated KYC solution for your global compliance needs? Get in touch and we’ll be happy to arrange a demo and/or discuss our potential collaboration.
