Product

KYC: The customer identity verification process

A crucial identity verification process for any entity subject to anti-money laundering and counter-terrorism financing regulations, KYC ensures compliance and mitigates risks. However, reconciling KYC with the customer experience remains a major challenge for businesses.

Le processus de KYC comprend tous les éléments suivants : vérification de l'identité du client, contrôle LCB-FT (lutte contre le blanchiment de capitaux et le financement du terrorisme), contrôle de l'identité par vidéo, vérification que la personne n'est pas politiquement exposée (PPE), et demande de documents légaux le cas échéant.

KYC stands for Know Your Customer

For any financial institution and more broadly for all entities subject to anti-money laundering and counter-terrorism financing regulations (AML and CFT), KYC is a necessary and indispensable process for identifying and verifying a client’s identity.

 

In simple terms, at the intersection of compliance and customer relationship, this process is the means to know and recognise one’s customers:

 

Know Your Customer

KYB for Know Your Business

KYB is a mandatory process that verifies the identity, legal structure, and compliance of the businesses you work with. It ensures that your partners meet regulatory requirements for anti-money laundering and counter-terrorism financing (AML-CTF).

  • 100% digital process : a fast and seamless integration, fully online, to collect and verify your partners’ legal documents through a customised interface.
  • Guaranteed compliance : automated checks to ensure regulatory compliance and enhance your security.
  • Significant time savings : reduce administrative workload and speed up your partners’ onboarding with a reliable and efficient system.

Who is concerned about the implementation of KYC?

Article L561-2 of the Monetary and Financial Code (CMF) lists the professionals subject to this obligation, including:

• Institutions in the banking sector
• The Bank of France
• Investment firms
• Credit institutions

• Insurance companies and brokers
• Provident institutions
• Mutual insurance companies
• Unions for insurance

What impact does non-compliance with KYC have?

Beyond the risk that financial institutions face with poorly identified clients whose identities haven’t been verified, they also expose themselves to severe sanctions for non-compliance with KYC regulations, especially if the infraction is repeated.

 

Concerning these entities, it is necessary to systematise this verification procedure, which is essential before initiating a business relationship and conducting initial transactions.

KYC, an obstacle in the Customer Journey?

Beyond the regulatory obligation and the risk management tool it represents, KYC remains a technical challenge for the entities required to comply with it while preserving the smoothest possible customer experience. A client inconvenienced or even halted in the progression of their journey is potentially a lost client for a company, as they may complete the same process with a competitor.

 

This is why Xpollens offers a simple, fast, and secure KYC solution. Developed with Netheos (certified PVID), it ensures a perfectly compliant onboarding process while preserving an ultra-smooth customer experience, to be discovered here:

Integrable into your existing tools
KYC, a 5-step process

1

Client Identification

The client provides basic personal data: name, address, date of birth, and identity document number. These pieces of information are crucial for establishing a reliable identification base.

2

Collection of Supporting Documents

3

Control and Validation

4

Risk Assessment and PEP Identification

5

Continuous Monitoring

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