KYC is a process of verifying a client’s identity when opening an account. The Prevention of Money Laundering (PMLA) Act 2002 by the Ministry of Finance and the RBI has legitimized the Video-Based Customer Identification process to verify customers, allowing onboarding via digital video KYC authentication.
The best way of customer authentication is using a video KYC software solution to get the fastest verification to onboard customers. Complete the digital video KYC with these four basic steps:
- Customer initiates digital video KYC journey
- ID scan and user identification
- Documentation check
- Video recording with Geo-location and time stamp
The video KYC software uses the following cases to ensure safe and secure document storage:
- Account opening
- Age verification
- Investor verification
- Forge protection
- Customer onboarding
Once the verification process is complete, we help our customer with the onboarding process. We believe customer satisfaction is our responsibility and we utilize the following measures to ensure a smooth user experience:
- Live real-time ID verification
- Real Time face recognition
- Geolocation capture
- Video forensics and spoof detection
- Document forgery check
- Plug and play solution
There are different requirements for video KYC apps in different countries around the globe. Central banking authorities like the RBI issue guidelines that are necessary for customer onboarding and identification.
Digital video KYC in India
- At the beginning of 2020 and the advancing pandemic, the RBI issued guidelines on performing remote verification of customers through a Video-Based identification Process. This step was necessary to ensure social distancing to control the curve of the virus. With the amendment in KYC rules, banks can now control digital technology to aid their Customer Identification Process (CIP).
- The Securities and Exchange Board of India (SEBI) in April 2020 allowed investors to perform digital video KYC procedures using Video-based KYC Verification. The verification process requires the submission of documents of identity proof through an online form or with an in-person video session with the verification expert. SEBI requirements issued on the VIPV process are listed as follows:
- The VIPV process can only be initiated by the authorized Registered Intermediary official with the consent of the investor/user.
- The user must make sure they are in a quiet place with a good network connection and clear visibility of their face.
- The process must include a random questionnaire and the responses must be recorded to analyse the overall liveness.
- The user should display their signature, Officially Valid Documents (OVDs), and the KYC form can be validated through an OTP.
- The expert must run some tests to ensure the Aadhaar card photo resembles the person in the video.
- At the end of the session, the video recordings must be kept at safe and secure cloud storage with date and time records.
For international users:
Every customer onboarding using Video KYC app has certain implications when it comes to different countries. Here we’ve listed two, Spain and Germany:
SEPBLAC, the financial intelligence unit in Spain, requires banks to perform video-based verification of their customers during onboarding.
BaFin, Germany’s supervisory committee in 2017, stated that video identification procedures are necessary for banks to reduce money laundering activities.