Best Info On Investor KYC In Accordance With AML Act


The Digital Era

The investor KYC solution is necessary for securing investment platforms. It ensures the credibility of investors and their funding by protecting the platform from attackers.

With the increase in the size of the market, especially the digital investment platforms, the world is investing a great deal in the success of new methods of online earning and trading with several new terminologies such as ICOs and other Non Fungible Tokens.

These platforms require investments and funding to be initiated in the market. For the purpose of a secure investment process the KYI (Know Your Investor check is performed at every process of investor onboarding. Research shows that funding platforms such as crypto and NFTs are reaching all-time high growth rates with over $8 billion in capital recorded in 2021.

Investor KYC In Accordance With AML Act

The AML (Anti Money Laundering) act is a part of the KYI check which improves the reliability of the public funding platforms for the use of generating revenue and stocks

. In order to comply completely with AML/CFT laws, the investor verification systems are created with new technologies of Artificial intelligence and Machine learning which provide an efficient online investor verification platform that is used by most firms today.

Verification Of Potential Investor

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To verify the identity of the investor the KYI investor verification process is executed to secure investor onboarding and perform the due diligence of the user who is opting for the position of investor in any business or organizational funding platform. The steps of the investor verification check are a part of this blog.

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Background Evaluation Of The Client With Investor KYC 

To verify investor background, one of the major assessments performed by the businesses during the investor onboarding cycle is the evaluation of investor history and previous records. The past workings and contributions of the user provide information about their potential of investing on the professional platforms of investments such as the ICOs, NFTs, and other means of digital trading networks.

With a strong background of working on fundraising campaigns for multiple business projects, the investor is verified to work with the business organizations.

Verify Investor Documents In Accordance With KYC Compliance

Document verification is a key process of every identity verification cycle. Just like the KYC check the KYI system of verification also uses the documents to verify the investor for further participation. The investor is required to provide all the legal paperwork that indicates the originality of the investor.

The documents include identity cards, banking statements, previous project logs, previous funding history records, and other documents which prove the identity and credibility of the investor. The digital investor verification system is based on AI and other automation technologies that are efficient for processing the documents of the user.

Biometric Evaluation of Investors

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The biometric features are key in verifying and registering the client into the investment system, especially on the strictly protected platforms. The biometric evaluation is necessary for the prevention of identity thefts and fake login attempts.

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Critical systems involve the use of iris and facial recognition scans for the purpose of identifying the investors within the system. The biometric verification system marks the client as an investor verified to make sure the other users interact freely within the online investment platforms.

Accredited Investor Verification With Investor Due Diligence

Investor due diligence is the investigation process of the stocks and investments of the investor to verify the funding process. The review is performed on several financial statements of the user that indicate the investor business network and all their legal filings which are associated with the investments generated.

The due diligence process is carried out at various steps in the investment process from onboarding to completion of the funding process.

The Accredited Investor verification cycle is performed on verified investors for the purpose of evaluating the investments and funding of the investors to protect those fundings from the attackers within the system. The due diligence process makes sure the investor’s funding is processed as credible sources of fundraising.

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Wrapping It Up

Attackers are aware of the fact that people are investing a lot in digital platforms, they have developed new tricks to use the forged profiles of the investors as their own means of misusing the revenues or simply, laundering money.

The Investor verification service or the KYI check is performed to eradicate the dangers involved in the digital investment platforms by evaluating all the possible loopholes and risky assessments of the system.

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The KYC verification check is performed in most industries for the prevention of money laundering and online scams. The investment regulation platforms are also under the KYC AML law for a secure digital investments process.

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