A rule of thumb is always ensuring that data is verified according to each country’s standards; valid identification is qualified differently in some countries.
Identity verification or in other terms KYC checks is a real-time check against these criteria, which is performed prior to onboarding a new client, without storing personally identifiable information (PII).
KYC refers to “Know Your Customer”. a common phrase used to accommodate identify verification tools and services. With these know your customer and identity verification technology, businesses can have confidence in onboarding new clients and customers by verifying individuals in real-time against reliable data sources.
What are the types of ID Verification?
The types of identity checking methods vary with the compliance requirements, use cases and the type of industries the Identity verification process is used for.
For example, in the UK there is Proof of Address (PoA), which is the most common and requires a name and address to ensure your customer lives where they claim.
Some other identity verification methods are more stringent, requiring a match across at least two different sources which are called 2+2 matching or ID document verification which requires a person to take a picture of their chosen identity like a passport or driver's licence which is matched with a selfie taken on their smartphone.
Find out more about what is ID Document Verification here.
The Role of AML (Anti Money Laundering)
More complex identity verification methods may be used in conjunction with industry compliance. An example would be the financial sector having to adhere to Anti Money Laundering (AML) regulations. This is when persons may be screened against international PEP and sanctions lists as well as adverse media and other international watchlists. Primarily, AML is composed of the policies introduced in the Bank Secrecy Act and the objective of AML regulations is to identify and prevent the hiding of ill-gotten money. These regulations are most notably present in the financial sector, but financial institutions are increasingly requiring their clientele to comply with Anti Money Laundering practices as well. These stringent compliance measures increase trust between you and your customers and protect you from liability that could result in heavy fines.
We have another article that explains what are AML checks here.
We have included a graphic to showcase multiple Identity Verifications methods for an individual.
Why Melissa?
Identity verification is performed in real-time to match contact data, including name, ID documents, address, and date of birth to reliable sources.
Identity verification can quickly become complicated on a global scale; different countries have different information available, different types of national ID, and provide their data in entirely different formats. Adhering to KYC and AML regulations is critical to avoid liability.
While these are important considerations, we at Melissa have already handled them for you, including proprietary contact data cleansing/validation services. We continue to solve these problems every day, working with governments and organisations across the world to provide customised and reliable identity verification tools.
At Melissa, we’re constantly sourcing new data and working with new providers to provide more coverage and reliable information for digital identity verification.