October 8th, 2018
AML, KYC & PSD2 Compliance
Compliance. At times it can be complex and inefficient. But it can be even more challenging from the customer’s point of view. Businesses can lose what should be eager customers, because of the burden placed upon them to locate and submit a multitude of personal documents. The solution to this problem is DirectID, by The ID Co. Read on to learn more, or try our DirectID compliance tools
Compliance Regulations Solved
DirectID fits seamlessly into your current onboarding processes. It confers permission to your customers to provide (read-only) access to their bank statements. These in turn, allow you to utilise this information to ensure compliance with industry regulations. These include:
Anti-Money Laundering (AML)
Regulations passed at national and supra-national level include the Bank Secrecy Act and the Fourth and Fifth Money Laundering Directives. AML regulations provide strict directives as well as substantial fines and penalties for those found to be in non-compliance by regulators.
Know Your Customer (KYC)
Regulated firms are legally obliged to ascertain the identity of their customers. This is known as Know Your Customer (KYC). KYC checks limit opportunity for money laundering, identity theft and other financial crimes. The responsibility for identifying customers rests squarely with business.
Second Payment Services Directive (PSD2)
The payment services regulations contain the rules for payments made across borders within the European Union. Its aim is to protect consumers, enable competition, and nurture innovation within payment methods.
Anti-Money Laundering regulations ensure businesses detect and report suspicious activity on customer accounts. The regulations place responsibility for detecting and reporting such activities directly onto businesses, and the penalties for non-compliance are heavy.
- Who does it apply to? The Bank Secrecy Act applies to any business operating within the US, even if only partially. The Fourth and Fifth Money Laundering Directives are mandatory for all European firms. Business must follow a minimum set of guidelines dictated by the regulations.
- How DirectID can help: You need a reliable system through which you can manage customer verification and onboarding as part of your compliance checks. DirectID streamlines the process, and presents you with a detailed report. By verifying customer identities and financial transactions through direct read-only access to their account, you can be sure that your due diligence checks are reliable and accurate.
Know Your Customer is all about having a level of confidence that you know who you’re dealing with. In recent years, stipulations around KYC checks have become ever more onerous, and the amount of information required to satisfy KYC checks can be burdensome for both customer and vendor.
- Who does it apply to? As with AML regulations, KYC checks are mandatory for all regulated firms. If your business deals in 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 integrates seamlessly with your onboarding process and allows you to verify customers’ identities and financial history. DirectID assimilates directly with customers’ online bank accounts, all with a few clicks of a button. Because of the value of data that banks hold on an individual, DirectID can save on time and expense during customer onboarding, while offering peace-of-mind that all necessary information has been collated and verified.
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 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 incorporate the 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 PSD2 compliant while also protecting your business’s assets and your customers’ and employees’ details.
As we’ve shown above, compliance can be costly, time-consuming and use valuable resource. Without undertaking KYC checks, and ensuring compliance with AML regulations, your business is vulnerable to potential fraud and regulatory non-compliance.
With DirectID, the worry is eliminated. 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.
Quickly and seamlessly integrate our widget or hosted solutions within your existing processes, and let DirectID protect your business inside and out with access to secure and instant (read-only) bank data that allows you to meet your compliance regulation requirements.
Interested in DirectID?
Fill out the form to arrange a demo today. Our helpful team can work with you to understand your business requirements, and how DirectID can help your assessment and onboarding processes.
Check out our other solutions.
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