Compliance – at times it can be complex and inefficient, but it can be even more challenging from the customer’s point of view. When completing what they thought would be a streamlined online signup, customers often dislike having to locate and submit personal documents, often resulting in businesses missing out on an otherwise eager conversion.
Download our fact sheet or watch our on-demand webinar to learn more about how DirectID makes compliance easier.
DirectID fits seamlessly into your current onboarding processes to help your business stay compliant with the toughest industry regulations, including:
“Know Your Customer” refers to a business’s obligation to verify the identity of its customers. In recent years, governments have placed more and more responsibility for KYC directly onto businesses. The Money Laundering Regulations in the UK require businesses to implement practices in order to make sure that they are not used for money laundering.
These Anti-Money Laundering regulations are the implementation of the Bank Secrecy Act. Aimed at preventing money laundering for any purposes, including identity theft or security breaches, AML sets standards which all businesses must follow in their efforts to prevent money laundering.
The European Parliament’s update to the Payment Services Directive, this set of payment services regulations contains the rules for payments made across borders within the European Union. It’s aimed at protecting consumers, enabling competition, and nurturing innovation of payments methods.
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“Know Your Customer” is a rather vague term with a meaning that varies depending on where your business operates.
In the UK, for example, the Money Laundering Regulations mandate that it is up to a businesses to prevent money laundering through their organisation, even if from an unknown outside party.
Wherever you are or whatever it’s called, “Know Your Customer” is all about having a level of confidence that you know who you’re dealing with.
- Who does it apply to? KYC anti-money laundering regulations apply across a wide variety of business sectors. If your business deals in responsible lending, accountancy, or any general service involving the transfer of funds or collection of customers’ financial details, then these regulations apply to you.
- How DirectID can help: DirectID is the most efficient way to know your customer, seamlessly integrating with your onboarding process and allowing you to verify your customers’ identities and financial history directly with their online bank accounts, all with a few clicks of a button. Banks know your customers better than anyone else, giving you the highest level of confidence that your customers are who they appear to be. Additionally, remaining compliant with the Money Laundering Regulations will protect your business from risk and regulatory fines.
The regulatory section of the Bank Secrecy Act, these anti-money laundering regulations ensure businesses detect and report suspicious activity on customer accounts. AML places responsibility for detecting and reporting such activities directly onto businesses, so there is no excuse for non-compliance.
- Who does it apply to? The Bank Secrecy Act applies to any business operating within the US, even if only partially. Each business must follow a minimum set of guidelines dictated by AML. Failure to comply is met with hefty fines and penalties, not to mention the risk of not properly protecting your business and your customers.
- How DirectID can help: As part of your due diligence, you need a reliable system through which you can manage customer verification and onboarding while fulfilling your compliance responsibilities. DirectID streamlines the process, presenting you with the most reliable report possible. By verifying customer identities and financial transactions through direct read-only access to their account, you’ll always know that you’re using the most accurate system available to remain secure and compliant.
The original Payment Services Directive went into effect in 2007, and PSD2 was first proposed in 2013. Finally adopted in 2015, this update aims to improve security, increase consumer choice, and update the systems through which international payments are made within the EU.
- Who does it apply to? If your company does international business within the EU, PSD2 applies to you. Member states, including the UK, are tasked by the European Commission to create or update national laws to coincide with these payment services regulations.
- How DirectID can help: With DirectID, you’ll have the most accurate profile available for all of your customers, having confirmed their identity with their online bank, reviewed electronic bank statements directly through the account, and checked industry-verified records such as address, credit score and sanctions checks. This ensures that you’re within PSD2 compliance while also protecting your business’s assets and your customers’ and employees’ details.
Download our fact sheet or watch our on-demand webinar to learn more details about what DirectID does and how it works.
Compliance is a necessity of business, and processes can be easier to implement than they sound. Without “know your customer” and money laundering regulations, your business is vulnerable to identity fraud and regulatory non-compliance.
With DirectID, the worry is eliminated, as risk is minimised through the most accurate system possible. Removing human error, saving time, and reducing the risk of heavy regulatory fines, DirectID makes it easy to stay compliant with PSD2, KYC, and AML regulations.
Seamlessly integrating with your existing infrastructure, DirectID will protect your business inside and out.
See for yourself – get your free demo and begin your journey to a safer and more compliant business today.