In chapter 2 of our KYC Compliance Fundamental Series: "Framework for Identity Verification, EDD and CDD" we provide a framework that will help you think through your customer onboarding process with a focus on the functionality and the identity checks that can help you achieve it, and the KYC Process to follow for Enhanced Due Diligence (EDD).
There are 4 fundamental questions to answer when designing and implementing your customer onboarding process flow:
- Is the identity real? Prevents synthetic identity fraud, and bots from creating fake accounts.
- Is the applicant the owner of the digital identity? Prevents identity theft, account takeover (ATO) and vulnerable victim fraud.
- Can you do business with that identity? Comply with regulatory frameworks: Sanctions/PEPs, Age, Location, etc.
- What is the risk associated to the digital identity? Decide whether a customer represents too much risk to your business.
This guide will show you how to answer these questions using online identity verification services, with tools that will allow you to quantify the risk score of each Digital Identity and a matrix of identity checks to keep in mind during the customer onboarding process.
Following the fundamental concepts in this framework, and supported by our identity verification platform, you can then build a proper process for your KYC process, including activities you need to perform during EDD throughout the lifetime of your client.
The IdentityMind platform offers everything you need to perform identity validation, KYC and EDD, to comply with your regulatory process.