KYC – What is it and what is its importance?

KYC involves:

• Perform identity verification.
• Review your financial activities.
• Evaluate risk factors in illicit financial or other activities.

Its objective is to confirm the identity of the clients, that they are the people they really say they are and above all that they do not participate in criminal activities.

Living in a world where we use technology and the internet daily for personal and work purposes, it is necessary to have regulations that support us against online fraud. So the KYC procedure supports us as a legal authority for any type of business that wants to incorporate a user as a client for some important or sensitive process.

KYC must be implemented in the first stage of any commercial relationship with a new client, that is, to comply with regulations against fraud and any illicit activity that occurs.

KYC Benefits

The KYC process offers many benefits for your company, but among the main ones are:

• Information reliability.
• Accelerates the risk analysis process at the same time, this creates a lower cost for the company.
• Obtaining data in real time.
• Avoid fraud.
• It improves customer satisfaction, as it offers a fast, easy and above all secure experience.

With all these benefits, the companies that offer this service create a better digital onboarding for their users.

So far we can conclude that KYC allows companies to protect themselves from fraud by ensuring that they are doing business with trustworthy and legitimate entities.

If you have any doubts about implementing KYC in your company, do not hesitate to contact us, we can gladly advise you on whatever you need.