If you have never thought of implementing identity authentication technology in your business, it is something that you should definitely consider. ID authentication is a verification process that compares the identity that a person claims to possess with the data that proves the identity. The following are some of the ways that this technology can help you.
First of all, identity authentication solutions can help you avoid costly fines. Sometime back, Standard Chartered was fined a whopping $1.1 billion by the United States and United Kingdom authorities for poor money-laundering controls. Since a lot of businesses simply cannot afford a huge fine of this size, anti-money laundering (AML) and know your customer (KYC) systems are so important.
AML is simply a collection of laws, regulations and procedures that are specifically constructed to stop the practice of declaring illegally obtained funds as legitimate income. This goes in tandem with the need for KYC, which is simply the process that businesses go through in order to identify their customers and also assess the risk of illegal activities.
If you want to avoid costly fines, or in some worst case scenarios imprisonment, you need to adhere to both AML and KYC protocols. When you implement streamlined, efficient identity verification software and practices that align with AML and KYC requirements, you will sidestep any potential fines.
There are many other individual rules and regulations that also apply to businesses depending on where they are based as well as the customers they serve. Right now, over 90 countries across the world require businesses to verify the identities of their customers and ensure the identity records are kept for a certain number of years. This is done to prevent terrorism, money laundering, and other criminal activities related to stealing and assuming different identities.