Perpetual KYC: The Future of Identity Verification

Perpetual KYC (know-your-customer) is a continuous and ongoing process of verifying customer identity, rather than a one-time event. This is a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) compliance, as it helps businesses to prevent fraud, protect their customers, and reduce risk.

Key Benefits of Perpetual KYC

• Reduced Fraud: According to PwC, identity fraud costs businesses over \$1 trillion annually. Perpetual KYC can help to reduce fraud by verifying customer identity in real-time and flagging suspicious activity.
• Improved Customer Experience: A smooth and efficient KYC process can improve customer experience by reducing onboarding time and eliminating the need for repeated identity checks.
• Increased Compliance: Keeping up with evolving AML/CTF regulations can be challenging. Perpetual KYC can help businesses to stay compliant by automating the KYC process and ensuring that customer identity is verified on an ongoing basis.

Stories of Perpetual KYC Success

Story 1:

Benefit: A major bank reduced fraud by 20% by implementing a perpetual KYC solution.
How to Do: The bank integrated the KYC solution with its core banking system to verify customer identity in real-time.

Story 2:

Benefit: A fintech company improved customer onboarding time by 50% by using a perpetual KYC solution.
How to Do: The fintech company used the KYC solution to automate the identity verification process and eliminate the need for repeated identity checks.

Story 3:

Benefit: A global e-commerce company increased compliance by 15% by implementing a perpetual KYC solution.
How to Do: The e-commerce company used the KYC solution to keep track of changes in customer identity and to flag suspicious activity.

Effective Strategies, Tips and Tricks

• Use a multi-layered approach to identity verification, including biometrics, document verification, and data matching.
• Automate the KYC process as much as possible to reduce costs and improve efficiency.
• Educate your customers about the importance of KYC and the need to provide accurate information.

Common Mistakes to Avoid

• Relying on a single data source for identity verification.
• Not updating your KYC data on a regular basis.
• Ignoring customer due diligence for high-risk customers.

What to Care About

• The cost of implementing and maintaining a perpetual KYC solution.
• The impact of perpetual KYC on customer experience.
• The legal and regulatory implications of perpetual KYC.

Conclusion

Perpetual KYC is an essential tool for businesses that want to prevent fraud, protect their customers, and reduce risk. By implementing a perpetual KYC solution, businesses can improve their compliance, improve customer experience, and reduce fraud.

Call to Action

Contact us today to learn more about how perpetual KYC can help your business.