In 2006, an employee of Wachovia Bank in England reported to management the suspicious activity of a client who, among other things, had requested financing to purchase an airplane. Despite the warning, the bank failed to take the necessary measures to<\/span> validate identity<\/b> of the same, which resulted in a multi-million dollar fine when it was discovered that the aircraft was detained in Mexico with a shipment of cocaine and, according to the investigations of the Mexican authorities, belonged to the Sinaloa Cartel.<\/span><\/p>\n He <\/span>Know Your Customer<\/span><\/i> (KYC) is a concept that refers to the processes carried out by banks and other financial institutions, primarily to comply with legal obligations set by governments. These processes, through the validation of their clients' identities, prevent money laundering and the financing of illicit activities such as organized crime.\u00a0<\/span><\/p>\n KYC has not only enabled international banks to comply with legislation in European countries or the United States, where anti-money laundering and terrorist financing are sought, but it has also been an effective solution for mitigating fraud worldwide and designing products that better fit customer needs.\u00a0<\/span><\/p>\n Mexican regulations are among the most rigorous and advanced in the world on this issue, since not only <\/span>requires financial institutions to provide information on suspicious clients<\/b>, but also includes other types of companies such as real estate agencies, brokerage firms, public notaries, or luxury goods retailers, among others, to combat corruption and money laundering.<\/span><\/p>\n In Mexico, banks and other companies must have policies of Know Your Customer<\/i> (KYC) and follow increasingly strict protocols when acquiring new clients. Furthermore, the regulations address the situation of some clients who deserve special attention due to the amount of money they handle or the type of transactions they carry out. Opening a savings account is not the same as making multimillion-dollar transactions abroad. <\/span><\/p>\n In some cases it is essential to carry out <\/span>Due diligence duties<\/span><\/i>, such as validating customer identities; constantly and thoroughly monitoring their transactions to detect any suspicious activity; establishing policies with users to ensure regulatory compliance; and appropriately managing risk when entering into a new business relationship.<\/span><\/p>\n The use of digital technologies is present in almost every aspect of our lives. In the case of companies in the financial sector, both traditional and so-called <\/span>FinTech<\/span><\/a>, must incorporate tools that not only allow them to comply with Mexican regulations but also provide a better user experience, for example, through the use of biometrics, where you can use your fingerprint to withdraw money from an ATM or use a facial recognition system to make transactions from your cell phone.\u00a0<\/span><\/p>\n In the case of strategies Know Your Customer<\/i> (KYC) the first step is to validate the identity of customers, and not only the financial sector can make use of technology to achieve this, but also other companies covered by Mexican regulations, reducing operating costs and risks, by preventing illicit activities such as <\/span>identity theft fraud<\/span><\/a>; it is enough to know that Mexico ranks eighth in the world in this crime.<\/span><\/p>\n Presenting official documents is the most common requirement that banks and other businesses ask customers to validate their identity, however, it is a time-consuming, expensive, and unreliable process. With the help of our authentication module, <\/span>Official identification<\/span><\/a>This can be done immediately and without the need for much paperwork, in addition to establishing greater security conditions such as the use of biometrics, document authentication, and generating a digital file.\u00a0<\/span><\/p>\n In addition to our official identification module, Your identity has some others such as: Face match, Background check on blacklists or Fingerprint biometrics, which allow implementing appropriate strategies Know Your Customer<\/i> (KYC)<\/a> and comply with the Duties of due diligence contemplated by Mexican regulations and thus avoid <\/span>Penalties for failing to validate your customers' identity<\/span><\/a>.\u00a0<\/span><\/p>\n Remember that implementing KYC processes is not only a legal requirement, but it also adds value to your company and helps prevent crimes related to identity theft. <\/span><\/p>\nWhat is KYC?<\/b><\/h3>\n
Due diligence duties<\/b><\/h3>\n
The use of technology in KYC<\/b><\/h3>\n
Our solution\u00a0<\/b><\/h3>\n