What is Identity Verification?

Identity Verification is to check the accuracy of the information provided by a public or private. The process of verifying information is essential. Because İf the information is wrong, the information we receive from the other party is of no importance. The first step starts with verifying the identity of the user. Once the business has verified the customer's identity, they will check to see if it poses a threat. In this way, companies can prevent money laundering, bribery, and terrorist financing.

The Necessity of Identify Verification Software

In a world where technology is so developed, manual authentication is very dangerous. Furthermore, the fact that companies continue with manual methods wastes their time. Unfortunately, people who commit financial crimes are developing new methods using technology. Total money from financial crimes is close to 5% of global GDP. The biggest reason for this high rate is that companies do not use electronic identity verification software.

Financial institutions can use Customer Due Diligence (CDD) as an electronic authentication tool. CDD is a process in which information about the customer is collected. The Financial Institution recognizes its customers and reduces the risks it will be exposed to. The most important of these risks is money laundering and financing of terrorism. CDD is also used to verify what people like Money Laundering Prevention (AML) and Know Your Customer (KYC) say to banks and financial institutions. Besides, financial institutions are required to take, evaluate, and implement effective measures to reduce ML / TF risks (for customers, countries, or geographic areas and products, services, transactions, or distribution channels). Simplified measures may be appropriate in higher risk and low-risk situations. The Financial Action Task Force (FATF) provides a guide on how companies can implement CDD measures using a risk-based approach to authentication.

Which Sectors Need Identity Verification

  • eCommerce
  • Gambling
  • Sharing
  • Industry
  • Trading
  • Finance
  • Online Education

Identity Verification Services help companies achieve AML-KYC compliance. With this software, companies become compatible with regulations AML and KYC regulations. And they also protect their firms from financial crimes.

There are many local and global regulators in the world. The purpose of these regulators is to prevent financial crimes. A large majority of financial crimes are carried out through the financial system. Therefore, regulators must proceed with financial institutions to prevent financial crimes. Regulators periodically publish and announce regulations. These regulations are rules for financial institutions. Large sanctions and fines are imposed on companies that do not comply with these regulations. No financial institution would like to face these penalties. That's why companies have compliance officers. Compliance officers follow regulations to protect firms from financial crimes and penalties. Identify Verification software, which enables companies to make safer and faster measures to prevent financial crimes, anti-money laundering software, and know your customer software help the compliance department of firms. 

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