The world of electronic verification is an ever-evolving industry, with some providers supporting features like facial recognition, authentication of documents, direct access bank account information, and PEP and Sanctions screening.
Electronic verification should provide you with a level of certainty that the individual is who they say they are and, for corporate entities, that a legal entity exists and has an active company status.
Electronic identification can be used either as part of a wider process or, where appropriate, as the only source of identification. Before using any provider, you may want to consider the following:
The information supplied by the data provider is considered sufficiently extensive, reliable, and accurate.
The provider allows users to capture and store the information they have used to verify an identity.
There are several benefits achieved by using electronic identification and verification (EV):
Improved Customer Experience
Using EV can assist in streamlining your current verification process. It can lead to enhancing the overall client experience making it easier for the client to submit identity documents securely in a matter of minutes ready for teams to receive and review.
Quicker Onboarding of Clients
Faster access to transmitted documents can reduce the time it takes to conduct Customer Due Diligence (CDD) and onboard the client. Adopting this approach may also help you carry out a risk assessment quickly to decide whether you would like to act for the client . It may even form part of your decision-making process when assessing any risks during the course of the instruction.
Most current providers allow you to verify documents. If you are interested in this feature just remember your provider is verifying the authenticity of the document having been issued using the machine-readable zone (MRZ code). It is important to remember a documentation verification check is not verifying the identity of the person, it is verifying the document.
If you are a firm looking to verify the identity of a person some providers offer a different feature which includes biometric data and facial recognition. Here the client is usually asked to take a live photo of themselves using an app and identity documents are uploaded. The picture and identity documents are compared by the system and all including the results are transmitted electronically to the firm as a pass/fail. The system is verifying the identity of the individual, which can help firms address issues where obtaining a correctly certified identity is a concern.
Clear Audit Trail
UK/EU providers are usually GDPR compliant, offering you a secure place to save all searches for a period of time, and helping you demonstrate a clear audit trail. Remember to check that your terms and data protection statements specify the use of authorised third parties to process personal data.
Automating your CDD process can make a manual task easier to manage and give increased accuracy. Politically exposed persons and sanctioned designated individuals/entities are automatically highlighted as risks. In addition, automating your take-on process by using digital technology to compare documents can improve quality and eliminate human error when comparing documents using the untrained eye.
Teal Compliance can help you shortlist a provider that is right for your business. For more details get in touch at firstname.lastname@example.org or give us a call on 03339874320.