Why is it Important to Have KYC collection for salesforce Processes?

Although "know your customer" can be applied to a wide range of business activities, from sales to marketing, it is primarily used in the financial and regulatory sectors to refer to compliance and due diligence terms.

What does "know your customer" mean? In plain English, "KYC" refers to the process of confirming the identity of your clients before conducting business with them.

It consists of various screenings from business to business for KYC collection for salesforce. Still, it most commonly includes ID confirmation, locating the ultimate beneficial owner (UBO), PEP and Sanctions screening, Anti-Money Laundering (AML) screenings, and others.

Within regulated industries, the phrase "KYC" is also occasionally used to refer to AML procedures; both are steps in onboarding a new customer.

Recognize your clientele.

A KYC policy must be part of the onboarding process for regulated industries by law, and many other businesses are adopting this practice to deter criminal activity. Considering the "know your customer" approach as an all-encompassing phrase encompassing different compliance and due diligence checks is best. They are essential to keep your company from becoming a victim of fraud, even though they are not required for all businesses.

'Know your customer policies: Why are they necessary?

Each industry will have a different governing body that controls and directs KYC policies. Suppose the Money Laundering Regulations apply to your company. In that case, you must take customer due diligence steps to verify that your clients are who they claim to be and conduct a risk analysis before doing business with them.

Know that the primary purpose of your customer policies is to safeguard your company from losses brought on by dealing with illegal transactions and fraud. Since money laundering, corruption, and other forms of organized crime are all on the rise, KYC collection for salesforce checks has been expanding and changing for some time. As a result, KYC policies have become a crucial tool for safeguarding financial institutions worldwide.

If you fail to comply with this requirement and are later discovered to be conducting business with a terrorist or money launderer, you risk fines, negative publicity, and even sanctions.

What does a KYC policy entail?

Checking KYC.

Be aware that company-to-company policies will vary, but many start by gathering fundamental data and information about their clients, primarily through electronic identity verification. The report will then be checked against databases to ensure the person is who they claim to be.

Additionally, a list of people with a history of corruption and criminal activity and those on a sanction list will be checked against this information. It is strongly advised not to work with anyone appearing on one of these lists to protect your business.

The Politically Exposed Person (PEP) lists will also be checked to ensure people are not at a high risk of money laundering or are not an easy target for bribery.

After completing all these checks, you should clearly understand the risk associated with working with a particular client and decide whether to continue doing business with them.

Maintaining a log.

Keeping a minimum 12-month record of your due diligence is advised by governing bodies. You must keep records of all the due diligence measures you take. You would need to keep some documents, such as:

• You possess customer identification documents.
• Risk evaluations.
• Your procedures, controls, and policies.
• Training logs.

Additionally, having a compliance tool that provides an audit trail of each step you take to demonstrate compliance is very helpful if your company is ever the subject of an investigation. This tool should detail all the measurements you took.

Additionally, it is advised that compliance checks be repeated regularly and that complete records be maintained for future use.

At your disposal should be a complete compliance tool.

KYC checks can be a laborious, time-consuming process, mainly if they are performed manually. Many businesses will have a group of people checking out potential customers, and even if some of them back out due to risk, you will still lose those labor hours. Additionally, this will affect your bottom line in addition to everything else. The best solution for you might be to find a way to streamline the workload to make it more effective and affordable if you are aware that your customer policies are delaying the onboarding process.

The KYC process is streamlined by the Compliance tool, which performs ID verification, UBO verification, PEP and Sanction screenings, and AML screenings. It also provides news reports based on raw data about the company. A KYC collection for salesforce compliance reduces the manual hours of your onboarding process by managing multiple policies for multiple jurisdictions and matching data to sources such as Lexis Nexis, thereby lowering human error.