Emily Clarke

How to Verify Your Customer's Identity Remotely

Doing business with a corporate customer means a lot of things for your company. In general, it means a new relationship and the potential for new sources of revenue. Unfortunately, it can also mean taking on additional risk, as professional relationships can mean financial and time investments. If you are looking for an electronic KYC verification software, visit this website.

To ensure your company understands its risk position, know your customer (KYC) processes need to be enacted. Electronic KYC verification is often used to research potential customers before official agreements are entered into. Additionally, electronic KYC verification is a requirement for some industries.

What If You're Separated by Distance?

The Internet has certainly changed how business verification takes place. In the past, business owners typically formed relationships with corporate customers that were located nearby, but the digital era has brought about opportunities to do business with customers around the globe. This has led to the need for remote KYC processes and verification.

As stated above, electronic verification of KYC standards is commonplace for remote verification, but you may also find that you need to research individuals who are a part of the customer organization. The customer organization may not pose challenges, but specific individuals in key leadership positions could pose a problem. If a conflict of interest exists or if a C-suite executive has a concerning history that does not match well with your own company's positions, that can lead to problems.

Due Diligence

You may also have a due diligence requirement if your company has investors. This requirement may stipulate that KYC verification processes must be completed to satisfy the needs of investors before you take on new customers. Failure to follow these requirements may result in investor relations souring, and in serious cases, it may result in investigations by regulatory agencies along with fines, fees, and other financial penalties or sanctions.

If you use software for remote KYC verification, it would be wise to ensure that the software includes the ability to document each step of your due diligence. These details can become very important if your decisions are called into question.

Author Resource:-

Emily Clarke writes about identity verification and business verification service. You can find her thoughts at id verification service blog.