KYC stands for Know Your Customer and corresponds to customer identification. In the business environment, this procedure makes it possible to identify the customer on the basis of the information obtained about him (data, background). This is particularly important in the banking and insurance sectors, as financial service provider and insurance companies have a legal obligation to identify their customers, thus avoiding becoming a customer or partner of a person or organization that can be linked to corruption, money laundering or terrorism.
KYC is one of the cornerstones of the fight against money laundering.
In practice, this is done by comparing the information provided by the customer with a number of databases, such as sanction and watch lists. In the event of a match, the service provider must notify the competent authorities, failure to do so will have serious consequences for the financial or banking service provider concerned.
Several solutions developed by Precognox help with customer identification by the integration of world’s leading name matching solution that improves the watchlist screening process. Learn more about how the solution addresses the challenges of name recognition.