The current global pandemic has presented a massive challenge for organizations that are obliged to perform KYC checks and monitoring. While many companies have adapted to at least partly digitize their KYC processes, many have not, and as a result have been hit especially hard during this time.
Banks and other major financial institutions are scrambling to try and set up online KYC in light of the speed and severity with which the Coronavirus took the world by surprise.
AUSTRAC's alternative processes to verify customer identity:
That being said, it’s helpful that more regulatory bodies are being more understanding during this time. For example, AUSTRAC, Australia’s financial regulatory body, has adapted some of its KYC regulations for businesses to cope better in this period. Organizations can now verify identity with a digital copy of government-issued ID (such as a scan) and AUSTRAC is encouraging the use of digital KYC when possible.
The Solution: Digital KYC
KYC procedures have been getting a major facelift thanks to COVID-19. While the reason for the technological upgrades isn’t pleasant, the outcome is that digital KYC procedures will become more commonplace, which is great for consumers and can save businesses valuable time and money.
However, it is extremely important that through all this innovation and development, regulatory standards are upheld to prevent criminal activities like terrorist financing and money laundering.
If you would like to learn more about using an eKYC solution like KYC-Chain, get in touch for more details and a demo.