Know-Your-Customer (KYC)

Verifying the identity of your clients is not just a smart move
- it's a required one.

Non-face-to-face business relationships are today the new "normal". For such affairs to be protected, the need for assessing the identities and potential risk factors of contractual counterparties is ever more pressing.

Keywords to get started:

  • Know-Your-Customer (KYC) refers to the identification process required by AML Regulations.

  • Customer Due Diligence (CDD) is the expression used in the AML regulations to describe the background checks commonly known as KYC. The CDD can be modulated according to the customer's risk level.

  • Enhanced Due Diligence (EDD) is a more complex CDD procedure thattakes place where the customer has a higher risk profile. It?s the case, for example, of Politically Exposed Person (PEP), meaning a person whois or has been entrusted with prominent public functions.

  • Know-your-Business (KYB) concerns the same CDD process when this applies to businesses, instead of individual consumers. Companies that offer their services to other companies (B2B) need to verify the identity of the real person they are doing business with, that is the natural person who ultimately owns or controls the legal entity on whose behalf a transaction is being conducted (Ultimate Beneficial Owners - UBOs).

The pace of regulatory changes and rising costs of compliance have made the traditional manual approach to KYC not wisely viable anymore. The EU has been leading the way regarding customer onboarding requirements and even for industries that were not traditionally obliged, widespread AML compliance is rapidly becoming the norm on the international business stage.

Most organisations are struggling to ensure that they fully meet CDD obligations without unduly burdening their customers. Besides, traditional paper-based processes misspend hours of work and heighten the risk of low-quality data collection. The modern economy requires digital solutions to improve the security and efficiency of business operations. And this is all the more true when it comes to client onboarding.

Penneo simplifies the process both for you and your customers. Our solid KYC solution is based on the identity validation through digital IDs and your clients can undergo the identity check directly from their computer or smartphone in a few minutes and full compliance with fraud-mitigation measures.

Three good reasons to upgrade your client onboarding system

Optimize business operations

Most companies still rely on "old school"KYC processes based on scanned copies of passports or similar IDs and thus require the customer to be physically present or sharing such sensitive information via email. With Penneo you can limit redundant tasks, get rid of inefficiencies and speed up your KYC routine. Our easy-to-use solution will facilitate your day-to-day operations and you'll have access to KYC casefiles from anywhere, at anytime, through the web app (via laptop, smartphones and tablets).

Improve customer experience

The consumers themselves have experienced an evolution of their expectations. The modern customers require easy and immediate access to the services they need, and this demand can only be addressed with a flexible and internet-only approach. Delays and long processing time can jeopardize customer relationships, while a fully digital KYC with an intuitive user interface would ensure a faster, smoother and overall better experience to earn your clients' lasting loyalty.

Ensure compliance and security

The more data you collect, the more data you are responsible for. Awareness about where the data is stored and who has access to it is the basis to prove the fulfilment of AML duties, as well as a requirement under the GDPR. Non-standardized processes result in duplicative and inconsistent KYC documentation. Adopting a digital solution, instead, will increase reliability and quality of your data. Penneo let you track and monitor the information gathered and document regulatory compliance - while sharpening your entire security system.

Penneo takes your KYC process to the next level

Exploit customization to save time

Forms can be personalized according to the customer's risk profile. You can pre-fill a form and share it through a unique link or edit forms to request only the documents that are truly needed for each specific case.

Keep track of your progress

A managerial overview allows to follow the progress status of your KYC documents and stay on track with deadlines. It is also possible to pair the form with other documents that need to be sent and signed.

Combine multiple functions

KYC form can also be plugged with the Penneo API for full integration. Strong integrations massively reduce the amount of time to be spent on data entry and the risk of human error while boosting your productivity.

4 simple steps, and that's it - problem solved!

1. Create a new verification form and choose what kind of information you want your customer to validate

2. Send it to one or multiple customers along with automatic reminders

3. Once done, your customer gets an email with a link where they can upload the required information

4. Signed and finalised verification ends up in your chosen folder in the Penneo archive

What do our customers think of KYC form?

"Before, we often received a copy of passport or driving license by e-mail. However, we have acknowledged that this process is less secure and, furthermore, was not in line with the Personal Data Regulation's equirements for handling sensitive data."

Jesper from Martinsen

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