KYC procedures help verify your identity while also analyzing just how risky your financial profile is. Here is some key information that might help you make more informed decisions about such checks.
KYC Checks in General
The list of industries, types of companies, and organizations that usually require KYC checks can extend far beyond banks. Here are a few industries that regularly use them.
Professional Services
Lawyers, accountants, or real estate agents also deal with large amounts of money and must usually operate trust accounts. Their work places them in direct contact with the law and they have to be careful when dealing with their clients. Extensive KYC checks with in-depth questioning are usually mandatory when using such services. The levels will vary depending on the strictness of the company you’re working with or the region you’re in and how the law is applied there.
The iGaming Industry
On iGaming platforms, KYC checks can be tedious and often slow down the fun of online gambling. However, gamblers, who are of age, also have the right to use platforms that allow gambling without bothering with KYC checks. Kane Pepi provides a vetted list of safe and licensed platforms for players to find the overall best online casino without KYC checks. These kinds of platforms often also provide added perks like a more private experience, great sign-up bonuses, and faster payout times
For those platforms that do follow KYC policies, whether it’s sports betting, slots, or any other gambling activity at the best online casinos, there are risks involved not just for the players but for the gaming company as well. KYC checks are there to protect the company from instances of underage gambling and identity theft, but also play a crucial role in the fight against larger concerns like international money laundering and even funding of terrorism. Despite this, choosing to play at an online casino that doesn’t do KYC checks is ultimately up to the player to decide.
Online Marketplaces
Some online platforms deal with very large amounts of money perhaps because they sell rarities like artwork, expensive vehicles, or other expensive or luxurious goods. As a result, they may need to conduct more in-depth KYC checks to verify that you are indeed who you say you are to avoid issues like their services being used to commit crimes like fraud, money laundering, or cyber theft.
KYC Checks in Banking
Low-Risk Transactions
Some companies are very thorough when it comes to selecting their customers. Even in basic transactions that have very low risk like opening a basic savings account, they want to make sure that they can easily identify and track you in the event of illicit activity on your account. In such scenarios, companies and banks obliged to conduct KYC checks will usually only ask for basic information and paperwork, such as valid ID documents and proof of address details.
International Transactions
When you want to move money across borders, the process becomes a bit more complex. Banks will need to make sure that the transaction meets anti-money laundering (AML) regulations, meaning that other documentation, such as your passport or visa, may be required along with additional confirmation steps.
Large Amounts
Another scenario in which you may find yourself face-to-face with grueling KYC checks is when trying to send an amount that the bank may deem very large.
In order to make sure the source of funds is clear, and that the money is not being sent out with criminal intent, the bank will ask more in-depth questions and may require that stringent documentation protocols be followed first.
Is Sharing My Data Safe?
The biggest concern is often whether or not sharing personal information during KYC checks is safe. It’s good to remember that KYC is a legal practice and a requirement for many businesses to conduct before taking on new clients. It is quite safe because many of these institutions are geared with high-end cyber security measures so your information is kept safe. They also use this information to make sure that no one else can falsely claim to be you.
Always keep in mind that it is relatively safer with bigger, more reputable companies. However, you should still be wary of newer companies that have not been tried and tested. Make sure to read the small print and terms and conditions of service, so that you understand how your personal information will be used before signing up.
