Changes in anti-money laundering (AML) legislation have increased the responsibility placed on senior members of firms, making it now, more than ever, crucial that you have adequate anti-money laundering systems in place to protect your company.
An integral part of anti-money laundering procedures are “Know Your Customer” checks; incorporating both ongoing monitoring of customer circumstances and, at the initial stage, identity establishment and verification.
KYC
For many organisations traditional identification procedures are no longer adequate, paper identity documents can easily be forged, storage of a manual paper trail is expensive and there is a strong possibility that using such methods may not demonstrate due diligence.
The Financial Services Authority (FSA) and Joint Money Laundering Steering Group (JMLSG), have noted that comprehensive electronic identity checks can provide the necessary verification levels needed to meet legal obligations.
If you are currently processing identity checks via an electronic solution, it is essential that the tool you choose meets certain criteria, as advised by the JMLSG.
Electronic Know Your Customer identity verification tools should:
- Use a range of positive datasets, with the ability to link a person from current to previous circumstances
- Access negative datasets (such as gone away and mortality records) to protect against ID fraud
- Supply transparent processes which allow you to know what checks were carried out, the results of these checks and what level of confidence they supply
- Have facilities in place which allow you to capture and store identity checks and the data used to verify identity
KYC Checks
Our identity check system Smart ID Plus allows you to perform KYC checks. Smart ID Plus is already utilised by many solicitors, accountants, estate agents and companies operating in the financial sector, to help them meet their KYC obligations.
Contact Tracesmart Corporate and we will arrange a no-obligation, free trial of Smart ID Plus.
