Smart Infotech

Know Your Customer (KYC) is a multiple-step process through which a business collects data that enables customer verification. This is usually done by banks and finance-related applications such as online stock brokers, digital wallets, etc. Rules related to KYC might differ from one country to another. Broadly, two basic details are ascertained about the customer: Identity Address It is done to identify customers as well as to ascertain whether the details provided by the user are correct. Since finance-related institutions and businesses usually deal with very large amounts, it becomes paramount to get details about every customer/party involved. Several other reasons why businesses should fulfill their KYC Objectives are as follows:  USER PROTECTION: Every user is different. Every user comes with a different objective. There might be a huge gap between what different customers desire, but user protection is a basic need of every customer. There is a major risk involved while d...

Money laundering cases are touching the sky over time. People are desperately after easy money, which leads them to commit heinous crimes like money laundering. Financial institutions are prone to such big losses that are hard to cover. More than any breach, money laundering in small businesses hurts the most. Small businesses do not have enough financial back that they can recover from the loss.  What is AML Sanctions Screening?  Sanctions are the restrictions applied by the government to prevent any high-risk fraudsters from getting involved in suspicious and illicit activities. The list of potential criminals involved in money fraud is publicly published on the sanction lists by the government. As a matter of fact, the sanction list is getting bigger day by day, and the names on the list are changing quite frequently.  Financial institutions or any entity fearing getting laundered must comply with the sanction list. Anyone that is named under the list should be avoided...

Customer screening is the process of dynamically assessing and comparing the data you hold on customers, prospective customers, and counterparties that are held within external data sources. It includes sanction lists, PEP lists, watch lists, and adverse media for risk management.  The key objective of customer screening is to manage the risk of doing business with “bad actors” or “prospective customers'' who pose an elevated risk of criminality. For example, the application of enhanced due diligence involves PEP and for that appropriate action is to be taken to manage the risks involved. The principal aim of customer screening is to superintend your organization’s exposure to money laundering, other forms of illegal money matters such as bribery, terrorist financing, corruption or tax crimes, etc.  On the contrary, Customer screening is mandated by AML (anti-money laundering) laws in most countries. It extends to all businesses operating within AML regulated sectors includin...