Step-by-step guide to the Know Your Customer remediation process

Are you avoiding KYC remediation? See how automated tools can help you stay compliant without the headaches.

Facing issues with your KYC  records often falls into the "too hard, too costly" basket. It means cleaning up outdated, inaccurate and incomplete client data and rescreening customers, something that too many businesses neglect.

But putting off your KYC remediation puts you at risk of regulatory scrutiny and potentially severe penalties, which can cost you more in the long-run in terms of fines, reputation damage and customer loss. 

Don't let outdated customer information expose you to risk. If you've been de-prioritising KYC remediation, it's time to put it at the top of the agenda.

The good news is automated tools are available to help make the KYC remediation process easy and cost-effective so you can stay compliant.

Follow this guide to your step-by-step KYC remediation process:

What is KYC remediation and why is it essential to AML compliance?

KYC remediation is the process of updating and maintaining your client's data to comply with the latest AML regulations and identify and prevent risks.

KYC stands for 'know your customer' or 'know your client' and is crucial to Anti-Money Laundering (AML) regulations in New Zealand, Australia and many other countries.

Under the umbrella of AML, KYC specifically focuses on verifying customers' identities and risk levels during customer onboarding and periodically while doing business with them. It's about knowing who your customers are and the risk they present to your business.

Businesses caught not complying with KYC checks face potential fines in the millions of dollars.

KYC remediation helps mitigate these risks by ensuring that customer data is complete and accurate and that customers' risk ratings continue to reflect the appropriate risk. An efficient KYC remediation project can ensure compliance while significantly reducing business risk.

The KYC remediation process: Step by Step

KYC remediation processes have traditionally required a high level of budget, resources, and time investment because of the overreliance on manual processes and paper trails. For this reason, they're often put on the back burner and only implemented when the regulator comes calling and it's already too late.

Cloudcheck’s KYC solutions has transformed this approach, allowing businesses to automate the full KYC remediation process. This ensures customer data is updated and corrected in a timely manner while reducing the need for manual resources. This saves time and costs while giving you confidence that you are staying compliant.

Here's how it makes KYC remediation easy:

Step 1. Gather customer data

Identify what customer data is missing and gather the missing information. Utilising digital self-service solutions will allow your clients to update their own information and upload identity (ID) documents at their own convenience, which improves the efficiency of the remediation process.

Cloudcheck allows you to send your customer a link, SMS or email so they can self-verify in their own time.

Step 2. Biometrics checks

Biometrically match your customers' faces to their identity documents to ensure they are who they say they are. Cloudcheck automatically matches your customer's identity information against more than 1,500 local and global identity documents.

Step 3. Address verification

Match customer information against comprehensive address data sources for high match rates, reducing manual effort. With Cloudcheck, you can choose which databases to verify against.

Step 4. PEP & Sanction Screening

Identify changes in an individual's risk profile by screening them against comprehensive global watchlists. Using data from Dow Jones, Cloudcheck lets you perform PEP and Sanction checks in real-time against local and international watchlists and gives you results in seconds.

Automate your KYC remediation process

With Cloudcheck, you can be confident you are meeting your KYC obligations by remediating out of data customer data without the headaches.

At Cloudcheck, we know how important accurate customer records are for KYC, which is why we've made it easy and cost-effective to run your full KYC remediation program.

Our streamlined process is easy for you and your customers, using information in their wallet or passport. A KYC remediation process can be as simple as securely uploading a spreadsheet to verify or rescreen your customers in a batch process. PEP and Sanction checks can be run simultaneously, and you can download a PDF verification report detailing the information verified, against which sources, and the PEP & Sanction status.

Talk to Cloudcheck today to see what KYC remediation solution suit your needs.