HomeBusinessKYC/AML Compliance and its Industrial Applications

KYC/AML Compliance and its Industrial Applications

As the fraudulent activities are increasing day by day, system hackings are getting easier, this alarming situation demands more stringent Know Your Customer (KYC) and Anti-money Laundering (AML) policies to be adopted by the regulatory bodies, financial institutions, and banking industry. A large number of businesses have recognized the importance of KYC and AML compliance and have implemented them in the system. 

Any organization that fails to comply with the essential local regulatory compliances is subjected to harsh penalties and fines. It costs billions of dollars and businesses have to mention the valid reasons for not complying with the regulatory authorities. To deter the risks of online fraud and heavy costs, it is crucially important businesses to adopt the processes.

A number of businesses manually comply with the KYC procedures which are more time taking and end up frustrating the customers with slow service. An automated system can help in easy checks implementation and efficient customer onboarding system. But, the reason behind the lack of automated system is the cost of installing an online identity verification system in the business. For sure, it will not be more than the costs of fraudulent activities that happen every now and then.

Automated KYC/AML Compliance

The financial institutions and banking industry following traditional KYC procedures have now implemented automated their system with persistent and streamline KYC/AML system. Fintech companies have jumped in with innovative solutions for businesses to integrate their systems with Artificial Intelligent and Machine learning based technologies. The smart systems are capable enough to handle the KYC and anti-money laundering checks for each onboarding customer.

Not only this, online identity verification services provide facial recognition and document verification services to verify the customers based on facial features and matching them with the official documents. This AI-based technology has made it easier to identify and verify the customers efficiently. Especially, financial sectors that need to authenticate the users with supporting documents now do not require manual verification. Real-time and robust verification systems have covered a large number of sectors globally. Other industries include;

  • Healthcare Industry

The growing cases of identity theft and data breach in the healthcare industry are risky for the lives of patients. Scammers steal sensitive information and medical records of patients and use them for malicious purposes. Health insurance and similar data are used to blackmail victims and do illegal activities. Not only victims, but health insurance companies are also affected by these scams. Hospitals and pharmacies themselves fail to identify the prescriptions whether they belong to actual patients and fraudsters. By installing remote KYC procedures, the medical sector can gain a strong grip on authenticating users and avoiding unexpected frauds that happen daily.

  • Online Gaming Industry

The gaming industry is a fast-growing industry among others and so, therefore, they are more prone to online fraud and payment scams. Online gamers want smooth line gaming without any buffering and interruptions. Online gaming accounts are the point of attraction for scammers and by exploiting loopholes, they can conduct malevolent activities within the system. Also, steal credit card information and valuable gaming assets of gamers.

The gaming industry is also in need of implementing fast and effective due diligence processes to keep platforms free from online scams. Real-time and fast online identity verification and age verification should be done to streamline the gaming platform and restrict the underage community from playing age-restricted games. Also, to monitor the transaction flow, automated KYC/AML systems should be installed in the system.

  • Travel Industry

Verification of tourists is important to avoid the entry of any restricted customer and streamlining the traveling experience by verifying the identities in real-time instead of verifying them one by one in the form of queues. This takes a lot of time by manually checking the documents and identity of customers. Facial verification has made it easier for the travel industry, which works by identifying the facial patterns of the customers and matching it with the supporting documents.

Automated KYC/ AML procedures can help in the verification of customers against sanction lists and electronic databases. This would accelerate the industry by allowing only trusted identities to become part of the online travel industry and curb the risks of frauds before they tend to occur. 


James Efron
James Efron
Writer and tech expert, James Efron is the author of various blogs and wrote about many advanced technologies including artificial intelligence, machine learning and big data. He is also expert in writing about Digital transformation of multiple industries.


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