Best practices for implementing a KYC process in your business

Implementing a Know Your Customer (KYC) process is essential for businesses that want to comply with anti-money laundering (AML) regulations. KYC is a process by which businesses verify the identity of their customers to ensure that they are who they claim to be. In this post, we will discuss the best practices for implementing a KYC process in your business.

1. Define the KYC process

The first step in implementing a KYC process is to define it. This should include identifying the types of customers that you will need to verify, the information that you will require from them, and the steps that you will take to verify their identity.

2. Conduct risk assessments

Conducting risk assessments is an essential step in the KYC process. This involves identifying and assessing the potential risks associated with each customer, based on factors such as their country of origin, the type of business they are engaged in, and the nature of the transactions they are conducting. Because this will help you to determine the level of due diligence that is required for each customer.

3. Collect and verify customer information

The next step is to collect and verify customer information. This includes information such as the customer's name and address. As well as information on the company they are representing, such as beneficial owners, company group structure and controlling that the company representatives do not appear on PEP and sanctions lists.

4. Use appropriate technology for KYC

Manually working with KYC can be a real pain, therefore it is of huge help to do it either partially automated or fully automated. Both of which we at Roaring can help you with. For a partially automated process, our web service Roaring Web is a great fit. Here you can easily look up all of the information you need, as well as use pre-made KYC forms.

If you instead wish to integrate and create a fully automated process, our integration suite is perfect for you. Here you can pick and choose what APIs you need, as well as turn on our monitoring solution, to make sure that you're always up to date.

5. Monitor customer activity

The final step in the KYC process is to monitor customer activity. This involves regularly reviewing customer accounts for suspicious activity and conducting ongoing due diligence to ensure that customer information remains accurate and up-to-date. To help you ensure that you're always up to date with the latest changes, we offer monitoring solutions in both Roaring Web and our Integration Suite.

Conclusion

In conclusion, implementing a KYC process is essential for businesses that want to comply with AML regulations. By defining the process, conducting risk assessments, collecting and verifying customer information, using appropriate technology and monitoring activity, businesses can ensure that they are effectively managing the risks associated with their customers.