Online Identity Verification Revamping AML/KYC Compliance
A specific individual is perceived by the qualities of his identity. These attributes help in the overall recognition of the end-user. For online businesses and organizations, the identity of clients is of prime importance. Identity verification procedures are incorporated by many industries including e-gaming, FinTech, digital banking, the medical sector, and blockchain. As per a study conducted by Statista, the overall income produced by identity verification is 4.93 billion USD and is estimated to reach 18 billion USD in the year 2027.
Significance of Identity Verification Solutions
The significance of the customer identity is because of two reasons: (I) It is a well-practiced method of knowing your client which creates trust among the business and the end-user and lessens the risk of identity theft. (ii) It helps practice worldwide financing rules sanctioned by administrative authorities including the European Union (EU), Financial Action Task Force (FATF), and Financial Crimes Enforcement Network (FinCen) which keeps up a constant progression of business operations and eliminates possible crimes. The significance of both are listed below:
KYC Standards
Know Your Customer (KYC) is a bunch of practices that a business utilizes to assess better their client’s personality. With regards to online enterprises, they, for the most part, rely on online identity verification service providers like Acuitytec.com to provide them with solutions for safe customer onboarding. This not just helps spare manual works spent on long and tedious enrollment, but also helps cut on operational expenses for that business. Thus, KYC strategies guarantee that the client is not a likely crook and may not hurt the business.
AML Obligations
AML, also called Anti Money Laundering, is a set of globally acclaimed rules which is chartered by EU and other financing regulators. These are useful in protecting a business against fraudsters who benefit from potential vulnerabilities of a business with wrong goals and by incorporating questionable ways. The primary purpose of AML obligations is to mitigate illicit activities like tax evasion and criminal financing which pose a genuine danger to online businesses and the finance industry.
Identity Verification Products
Identity verification service providers give an extensive set of services that fuse various methods for identity verification of the customer. The following are some applications online identity verification:
Document Verification Services
Document verification, as the name suggests, utilizes official identity documents provided by the customer or end-user as recognizable proof. These are normally photograph-based certificates issued by the government that is given by the client and should be legitimate and unique. The identity verification system lets online organizations distinguish any suspicious or tampered documents utilizing state-of-the-art AI-based models that check for originality of the document and authenticate user identity. Verification of identity usually entails the below:
- Check the format and quality of the document, for example, search for altered, photoshopped, traded off, or documents with false images.
- Carry out an Identity verification check by juxtaposing the photograph of the verifying client with the one on the provided document.
Biometric Identification
Another innovation that is advancing into the market is online Facial Recognition. This identity verification product prompts the client to show their face before their phone/PC camera. The API incorporated into the online business site page utilizes the webcam to examine the client’s identity by considering the facial attributes. This is useful in readily verifying customers at their homes since they don’t need to be available at verification offices.
Aside from facial recognition, fingerprint biometrics is another product of ID verification. Today, most smartphones accompany a fingerprint sensor which helps in the identity authentication of users. Digital banking applications are one fine instance of identity verification performed during client logins. This ongoing monitoring helps maintain a secure communication channel between the business and the customer and take down criminal activities.
