KYC (Know Your Customer) compliance is a major principle for every business organization to verify their customer. It helps the firm protect its assets, especially its finances from unauthorized people that can harm the whole system. The fraudulent people are always trying to get into the network of the business to launder money.
With new methods of earning via the introduction of digital platforms such as cryptocurrency trading and NFTs, the attackers are trying different ways of scamming the investors and the clients for the purpose of stealing resources. To tackle these issues of digital scamming the know your investor solution is implemented to protect the investors and the market from thefts.
The Need for Know Your Investor Service
As the demand increases, people are investing high sums of money in the digital market such as crypto and NFTs. The fraudsters opt for it as a golden opportunity to hunt the investments in their own favor.
According to Statista, the amount of money laundered in the global NFT market is on a rise with newer techniques of money laundering every year. Records of the year 2021 show multiple attacks which resulted in more than 1250,000 US dollars.
Another record of the investment fraud reports losses of over five hundred million dollars as per shufti pro news. These statistics clearly define the need for investor verification services to verify investors.
Know Your Investor Verification Service
KYI (Know Your Investor) is a check that is made mandatory for most digital investments to filter out real and fake investors. It uses new means of digital verification that authorize the investor before any process of onboarding. The KYI check is implemented as the law to safeguard the investments of the investors and the clients as per Shufti Pro funding. The KYI solution at first instance verifies the identity of the investor to make sure no cheater is getting access to the investment gathering network. Multiple techniques are developed with high resources to protect the digital investment sector such as the shufti pro funding. It uses multiple techniques of verification that in turn prove user identity.
KYI Identity Verification
The identity verification process is initiated for the investors at maximum times of digital onboarding. The investor’s identity is verified by various methods proposed by the KYC AML act such as:
Age Verification:
The age verification process determines the eligibility of the investor participating in the investment process. The age is verified by digital techniques of document verifications using AI and OCR processes.
Document Verification:
The process of document verification is important as the process of documentation proves the legal authorization of the investor. The KYI check identifies the investor through their legal paperwork to allow participation in the investment process. The documents required by the KYI solution to verify the investor are registers of investments, date of incorporation, banking details such as bank statements and slips, address proof documents, and other legal documents that verify the identity of the investor.
Biometric Verification:
The investor is verified by biometric means of verification such as fingerprints and face scanning. The biometric verification solution uses new means of verification to detect and verify the user and their clients. This process is secure in the investment process cycle as the cheaters cannot mimic the biometrics of the user.
KYI Due Diligence
The KYI cycle involves the verification of the investors by all means of authorization methods. The due diligence is performed to verify the user and all their associated networks follow the AML (Anti-Money Laundering) regulations. The KYI due diligence process involves:
Associated Shareholders:
The KYI check is performed on the shareholders of the investment entity to verify the integrity of the investor. The shareholders are verified by multiple evaluations through various digital assessments.
Strategic Corporate Business:
The corporate business verification check is a major step in the KYI evaluation cycle before any process of investor onboarding. The corporate strategy of the business provides insights to the investors which are opting for the investor cycle.
Conclusion
The KYI solution is necessary to prevent the risks involved in the funding and resource gathering process. Advancements in the field of technology are inventing new ways to interact with the world and to earn by means of digital methodologies such as non-fungible tokens and cryptocurrencies.
The KYI (Know Your Investor) verification solution is implemented to verify the integrity of the investor through multiple checks of identity verification and due diligence processes. The verification is necessary as it provides insights into the investor profile which can help in the prevention of money laundering and scams.
