The importance of international data in KYC


Thanks to freedom of movement and trade, the world keeps getting smaller. With companies constantly looking to extend their reach beyond borders and people moving freely from country to country to follow work or family commitments, there has never been a time when access to international data was more important.

Stringent AML/KYC legislations and global guidelines are designed to prevent terrorist financing, money laundering and financial fraud as well as guard against ID theft. Accessing international data allows banks and businesses to create a customer profile which provides powerful insights into future account activity, mitigating potential risks and ensuring compliance.

But satisfying KYC requirements in a global market can be challenging. Digital databases are not readily available in every nation and inconsistencies in global data sets can produce further complications.

In addition, differing data protection laws around the world can leave organisations vulnerable to penalties or manipulation.  All international organisations must create dedicated and thorough international data procedures, which utilise both modern and traditional systems.

In our fast-paced digital world, customers and clients have no patience for paper-based systems which are subject to human error and slow results. Therefore, organisations must streamline their international onboarding practices, to quickly verify new and existing customers.

Fast, reliable access to global data facilitates cross border relationships by smoothing the KYC process to satisfy clients, while adhering to guidelines. Improving international onboarding for clients and customers is an essential tool for all companies who are stretching their practices further afield or recruiting from abroad. Suitable international KYC processes not only help prevent crime, but also provide your business with an opportunity to truly understand the needs of your client.

Exploiting the increasingly global market can be an easy win for money launderers and other criminals, but organisations who have unwittingly facilitated criminal activity can suffer catastrophic penalties. Therefore, adequate global KYC procedures using robust international data are imperative to better understand the customer and minimise risk.