Because of the COVID-19 pandemic, face-to-face transactions between businesses and their respective clients have become closer to non-existent.
While it comes with many perks, especially for those who wish to steer clear of a deadly virus, online dealings have made it easier for money laundering activities to hurt an assortment of businesses.
This is when you know your customer or KYC shines. For business owners, this process of verifying the identity of customers can help keep their ventures afloat by fending off money-related criminal acts committed by shady people from dragging them down.
Since KYC can spell the difference between staying in operation and closing up shop as a result of the loss of integrity, there are many KYC providers available these days. Although it can make KYC more accessible, it can make it challenging to find quality service, the kind that can help protect a business and its clients, too.
Besides, it is also necessitated by regulatory authorities for a business to obtain important pieces of information from clients before enabling them to carry out transactions.
Such stems from the anti-money laundering or AML regulations and enforcement measures that are being heavily implemented all over the planet since 2018.
When choosing a KYC provider for your money-generating enterprise, there are a few essential matters that you should keep in mind throughout the process:
Before sealing the deal with any service provider offering KYC, you need to do a very important step. It’s none other than ensuring that the company is offering security solutions compliant with the core requirements of all local and global regulations.
Failure to do so may cause you and your business to wind up in the hot seat. If the KYC provider you are eyeing cannot seem to show any proof that it complies with various regulations, immediately look for a different company.
Up to Date
Different service providers offer different KYC formats and meet different KYC standards, too. Similarly, they use different technologies.
Especially because the COVID-19 pandemic has caused e-commerce to boom further, it’s a must for any KYC provider to incorporate the level of technology needed to be at par with the current standards and needs.
It’s a good idea to refrain from making an agreement with a company whose technologies seem outdated as it may not give you and your clients, too, much-needed protection.
Refrain from assuming that businesses in the banking and finance world are the only ones that can benefit from approaching KYC providers. For as long as your business entails an inflow of cash from your clients, it can and should take advantage of KYC.
This is why you should see to it that the KYC service provider is specializing in the industry your business is a part of. Be wary if the company doesn’t have any client that belongs in the same industry as your business because it is an extremely risky move.
Your available budget is an important consideration when planning to implement KYC and leaving the job to a provider. There is no point in having top-of-the-line protection if there is a gigantic hole in your pocket due to a KYC service that is way beyond your means.
Fortunately, it is possible to come across high-quality KYC that comes with a reasonable price tag. Shopping around will help you stay within your available budget.