KYC document verification is a critical process to ensure that businesses have the true identity of their clients to control financial fraud. Whether it is difficult or easy, it must be done accurately and precisely to avoid fraudulent business activities. Documentation is necessary to verify individuals’ identities and tackle fraud appropriately. From 2017-2027, within this 10-year time frame, the forecast is that the identity verification market would grow to more than 13 billion U.S. dollars.
Specifically, in the financial sector, kyc onboarding document verification is a regulatory and legal requirement for businesses. Terrorist financing, money laundering, financial fraud, and identity theft are the major concerns that can only be controlled by businesses using the KYC document verification process.
Physical and Digital Documentation
Physical and digital documents are verified and scrutinized to identify the individual’s identity, which is a core component of the KYC documents procedure. This document check includes matching physical documents with digital data, whether they are accurate or not. It also checks the biometrics of the clients to make sure that they are the same person.
This documentation includes bank statements, utility bill copies, proof of address, driver’s license, passports, or anything related to government identity documents. All these KYC documents are needed according to the areas they used to live in and the business sector they will work in, as every organization has its own requirements for documents.
Fraudulent activities are an essential part of every organization, specifically those in the finance sector. Therefore, KYC document onboarding helps secure these organizations from being caught in fraudulent activity. After KYC documentation, it became assured that clients who claim to be working can significantly reduce the risks of being involved in financial crimes.
Issues Regarding Verifying Documents
Nowadays, artificial intelligence and machine learning tools are essential for enhancing the accuracy of the KYC document checklist. These technologies can consciously verify documents by extracting biographic information, determining their authenticity, and comparing them against global database security.
Providing document verification services to individuals may have some issues, such as forged documents or incomplete information, which is not helpful in completing the verification process physically.
With ease and efficiency, businesses can control and locate the complexities of KYC documents by knowing the challenges and employing best practices. For the successful onboarding of a customer, understanding the document process is essential, and it can only be completed by the business after involving a successful KYC document verification process.
Steps of Document Verification
Several steps are involved in the KYC documents verification process that need to be followed in the exact numbering, and if any step is left, the process will be incomplete. Following are the steps below to follow for KYC document verification:
Document Collection
The most important and fundamental step is KYC document collection, and it is also the most careful step. If any documents remain missing, then collecting them would be useless as they do not help complete the verification process. Most of the time, businesses provide digital platforms to individuals in order to submit their documents, making sure that they successfully upload their documents there in a timely manner.
This KYC Documents process helps individuals trust that the way they are using or the place where they are providing their documents is secure. Their data won’t be misused in the future as the organizations ensure they have regulatory platforms to upload individuals’ data to avoid data breaches against clients’ information. Physical documents are also collected to match the information with the soft copies of documents provided by individuals in the early steps.
Authenticity Check of Documents:
Authenticating KYC documents is a crucial and sensitive step to avoiding and preventing financial crimes and fraudulent activities. Organizations scrutinize physical and soft copies of individuals’ records, as sometimes forged documents need more complete information.
This document check is being performed using the number of digital verification tools available nowadays in the digital world. The algorithms analyze the signatures embedded in those documents these technologies use to analyze these KYC documents. This helps ensure the legitimacy of those submitted documents, and this approach helps in digital and physical examinations to verify the authenticity of documents.
Final Thought
KYC document verification needs appropriate documents to verify and match them with digital and physical documents. Their accuracy and authentication are compulsory to make sure. Otherwise, they won’t be able to verify the user’s identity and will not complete the authentication process. This authentication is a compulsion step in order to make sure that the person organizations are hiring is genuine and has a positive, non-criminal background while working within any organization.
Document verification is a compulsory step within any organization as without collecting any authentic documents from an individual, one cannot process their employment process and one cannot be able to make their place secure within that organization.
