What is KYC, and why is it so important?
KYC stands for Know Your Customer. The regulation is essentially a very important set of rules and procedures that financial institutions (such as government entities, banks, investment firms, and exchange companies) must follow to verify the identity of their customers.
The regulations are designed to help prevent financial crimes such as money laundering, terrorist financing, and fraud, but they also help organisation assess their risk levels.
Why is KYC regulation important?
The regulation is necessary because it helps to protect financial institutions and their customers from financial crimes that can have serious consequences, including loss of money, damage to reputations, and even harm to national/international security.
The regulation helps to promote transparency and accountability in financial transactions, which helps to build trust in the financial system.
It also helps to ensure that financial institutions comply with other regulations, such as anti-money laundering laws (AML) and tax laws.
Who does KYC regulation impact?
It also impacts individuals and businesses that use financial services provided by these institutions. It is is especially important for high-risk customers, such as those who are politically exposed, those who live in high-risk countries, or those who have unusual financial activities.
KYC regulation is a set of rules and procedures that financial institutions must follow to verify the identity of their customers and assess their risk levels. It's important because it helps to prevent financial crimes and promote transparency and accountability in financial transactions. It impacts financial institutions, individuals, and businesses that use financial services. Know your customer regulation impacts financial institutions such as banks, investment firms, and insurance companies.
Togggle provides decentralized identity verification solutions specifically for global KYC-regulation compliance. We help businesses prevent, detect and resolve customer related issues.
Our unrivalled security solution provides:
Our technology detects fake pictures, identifies a face’s unique features, generating a biometric descriptor. This ensures you’re dealing with a real person at onboarding.
Verify genuine presence and ownership of identification documents with technology designed to ensure the Liveness Check matches the photo identification.
Our algorithm uses Machine Readable Zone (MRZ) technology to extract the relevant encoded information, match them with the government databases and verify the validity and ownership of the document to avoid fraud risk.
Prevent interactions with high-risk entities at onboarding and avoid potential financial crimes with our Anti-Money Laundering solution.
Verify your customers are authorised users of their IP address with technology designed to detect unauthorised fraudsters and prevent bots.
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KYC laws are often a part of AML (anti-money laundering) regimes and are influenced by the recommendations of FATF.
Here are some of the laws, regulations and guidelines you need to know:
USA, the Banking Secrecy Act (BSA) requires reporting entities to take necessary measures for customer verification and to report suspicious activities to FinCEN. Banks are also required to adopt customer identification programs according to the provisions of the US Patriot Act.
Switzerlands Anti-money laundering Act (AMLA) specifies the customer identity verification laws for financial businesses.The Money Laundering Act – 2017 (MLA) of the UK defines customer verification regulations for reporting entities.
Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) sets the KYC requirements and processes for reporting entities.
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Australia's AML/CTF Act, implemented by AUSTRAC, defines the KYC and AML compliance guidelines for verification of individual and corporate customers.
Togggle empowers governments, organisations & enterprises to:
Achieve & Maintain Global KYC, CDD & AML Compliance.
With Togggle, you can rest assured that your business is always up-to-date with the latest compliance requirements.
Avoid any kind of fraudulent activity.
With Togggle, you can have peace of mind knowing that your business is protected against even the most sophisticated fraud schemes.
Scale customer onboarding globally.
Whether you're a small startup or a multinational corporation, Togggle can help you scale your customer onboarding process globally.
FAQs
We understand that you may have questions about our technology and services, and we're here to provide answers. This section is designed to address the most common questions we receive from our clients and provide you with the information you need to make informed decisions about your compliance and fraud prevention needs.
Both regulated and non-regulated entities utilize KYC (Know Your Customer) software to authenticate the identity of new clients, with financial institutions, traditionally banks were the most common users, but now you find enterprises, exchanges and many other organisations wanting to verify identities. KYC software plays a crucial role in circumventing fraud, money laundering, and terrorist financing, while also ensuring adherence to local or global compliance standards.
Various automated and manual verification checks are utilized by KYC solution providers to confirm user identity. These checks comprise of ID verification, source of funds checks, customer due diligence, and watchlist screening. In addition, advanced KYC providers such as Togggle provide decentralized, re-useable credentials empowering both the customer or account holder and the enterprise or entity trying to confirm identities with frictionless onboarding.
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