Identity document verification is a technology that you should consider using in your business due to the many benefits that it carries. One of the major motivating factors in identity verification is protecting and avoiding fraudulent activity is. There are several other aspects that are worth taking into account, such as compliance with key regulatory bodies as well as the ability for new customers to fully access digital services. The following are some of the benefits of running a water-tight identity verification for new customers.
One of benefits of investing in identity document verification is that it can help you avoid costly fines. During the year 2020, fines for non-compliance with Anti-Money Laundering (AML), Know your Customer (KYC), data privacy, as well as MiFID regulations against the financial sector totaled $10.6 billion. The financial penalties for anti-money laundering-related compliance breaches represent 99 percent of the total value of enforcement actions issued in 2020.
Westpac, which is one of the Australia’s largest banks, was forced to pay a record AUD 1.3 billion ($959m) fine for money laundering breaches. If you are a small or medium-size company, you can simply not afford a huge fine of this size, which is why AML and KYC systems are very important.
So, what exactly is AML? It refers to a collection of regulations, laws as well as procedures that have been specifically constructed to stop the practice of declaring illegally obtained funds as legitimate income. This goes hand-in-hand with the need for Know Your Customer, which is essentially the process that businesses go through to identify their customers and assess the risk of illegal activities.
You need to adhere to both of these protocol if you want to avoid costly fines, or, in some worst case scenarios, imprisonment. Implementing streamlined, efficient identity verification software and practices aligns with KYC and AML requirements can help you sidestep any potential fines.
For more information on the benefits of identitydocument verification, visit our website at https://authid.ai/
