KYC (Know Your Customer) compliance
Financial Institutions need to set up appropriate identity verification mechanisms to secure the onboarding of new customers to their services and comply with stringent and evolving regulations such as Anti-Money Laundering (AML) Directive v5 v6, and PSD2 in Europe.
Many financial services KYC procedures require demanding identity verification and genuine user confirmation during the entire client life cycle.
Discover now how the KYC services in the Thales Gemalto IdCloud platform can help you.
Swift and secure customer onboarding
Customers today expect that they can open a new account online, only using their laptop or mobile.
It sounds simple, but it's not.
Financial institutions need to offer a fully digital onboarding experience to avoid abandonment during the enrolment phase.
To offer this, you need KYC services such as:
- document verification,
- face recognition,
- anti-money laundering checks (AML).
There are many suppliers of document verification solutions on the market. What sets our platform apart is that you also get access to risk management services which are essential in the onboarding process to minimise identity theft fraud.
Our risk engine collects signals during user onboarding from IP address, geolocation, device, social reputation, mobile operator data intelligence, or any other potential third party required for additional checks.
For instance, we can collect national registries to provide stolen ID or mortality information.
By adding this risk management to your KYC services, you can introduce adaptive onboarding, such as starting the whole process by checking for any signs of potentially fraudulent activity, before even launching the actual KYC process.
The goal is to prevent ID fraud and lower false acceptance rate (FAR), one of the most important KPIs to track during digital onboarding.
Online document verification
Document verification is a digital verification process used to verify if a user's ID document is authentic.
The customer uses his or her mobile device to capture the document and send the photo to the Thales Gemalto IdCloud server for the document verification process, which screens for all security elements to prove the authenticity.
A score is produced for every verification, and the Financial Institution will get a result if a customer's document is fake or genuine.
Advanced document verification can include (not limited):
- Data integrity checks
- Data format checks
- Visible security features or patterns: watermarks, stamps, line patterns …
- Machine Readable Zone (MRZ) inspection and cross verification with visual information
- Expiry date check
- Data extraction; such as name and date of birth to be used in Financial institution's CRM systems
Online facial recognition
To complete the remote onboarding process, customers must prove they are genuine and physically present during the onboarding process.
This step is essential to associate the physical user with the use of his or her document.
The principle of a facial match service is simple.
The user takes a selfie. It's then compared with the picture extracted from the ID document, which has already been proved genuine.
Again, the mobile device can be used to perform the action and streamline the remote process.
Thales can provide one of the best facial recognition technologies in the world. The service also offers liveness detection options for guaranteeing a live person is performing the request.
Anti-money laundering checks
Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations are being imposed and reinforced all over the world upon onboarding new customers and to fight identity fraud.
Financial instutions must now strengthen customers' identification using reliable and independently sourced documents, data, or information.
With the latest AML v5 and v6 regulations, new customer registration requires PEPs & sanction lists verification and proper risk assessment policies to be set in place.
In essence, the identity verification can be completed only once these additional AML sanction lists are checked on each end-customer attempting the onboarding.
One cloud platform to secure onboarding and access to digital banking
Our KYC services are part of Thales Gemalto IdCloud, our cloud-based managed services, which lets financial institutions combine KYC, authentication, and risk management to secure onboarding and access to digital banking services.
The good news?
The customer journey is enhanced with one single simplified API.
More resources on KYC services