KYC KNOWLEDGE

KYC FOR BANKS AND FINANCIAL INTERMEDIARIES

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SECURE AND EFFICIENT KYC AUDITS FOR BANKS AND FINANCIAL INTERMEDIARIES 
 

comprehensive KYC solution with KYC Toolbox

COMPREHENSIVE KYC SOLUTION

The KYC Toolbox offers what you need. Whether KYC checks, detailed reports including media screening or the onboarding chatbot.

current data from various sources

CURRENT DATA

With KYC Spider, you can stay informed about your business partners in near real time about the inputs from various sources.

Data protection with Swiss Standard

SWISS STANDARD

KYC Spider is subject to strict Swiss data protection laws. The servers are located in Switzerland and are protected according to Swiss banking standards.

DO YOU HAVE A SPECIFIC QUESTION?

WHY KYC IS IMPORTANT FOR THE FINANCIAL MARKET

Following the financial crisis of 2007, compliance requirements have risen sharply in Switzerland. The Swiss Financial Market Supervisory Authority FINMA and various self-regulatory organisations (SROs), such as the VQF (Association for Quality Assurance in Financial Services), introduced stricter due diligence requirements and controls.

Compliance requirements for banks have increased

Following the financial crisis of 2007, compliance requirements have risen sharply in Switzerland. The Swiss Financial Market Supervisory Authority FINMA and various self-regulatory organisations (SROs), such as the VQF (Association for Quality Assurance in Financial Services), introduced stricter due diligence requirements and controls. As a result, secure compliance processes have become increasingly important for banks and financial intermediaries and have become unavoidable in order to avoid drastic sanctions.

Support for banks and financially related enterprises

KYC Spider's mission is to assist banks and financial institutions with their customer reviews (KYC). Through our extensive PEP and Sanctions database (KYC Records) and the secure and intelligent KYC platform, KYC Spider supports your business by providing the technical tools to meet your due diligence obligations. In addition, the KYC Spider platform is designed to help you digitize your standardized KYC compliance processes.

Find out below how you can benefit from Digital KYC and use the Toolbox to simplify your due diligence and use it efficiently for risk analysis. Or download our free Digital KYC Summary for Compliance Managers.

Download Digital KYC Summary

What is KYC? 

KYC stands for "Know Your Customer" or "Know Your Client" and is an important tool for the financial sector in particular to check the identity of its customers with regard to compliance (sanction lists, PEP status, CRIME, blacklists or watchlists).

KYC stands for "Know Your Customer" or "Know Your Client" and is an important tool for the financial sector in particular to check the identity of its customers with regard to compliance (sanction lists, PEP status, CRIME, blacklists or watchlists). KYC is part of the Simplified Due Diligence (SDD) of financial intermediaries as part of a compliance process. It is operated with the aim of preventing white-collar crime or money laundering. 

For banks in Switzerland, KYC checks before the start of a contractual relationship are a means of fulfilling FINMA's regulatory requirements. It checks whether business partners are trustworthy based on suspicious transactions or hits on a risk list (e.g. sanctions lists or PEP lists).

What is KYC Enhanced Due Diligence? 

Enhanced Due Diligence (EDD) is part of the KYC process and reviews potential business partners and customers in depth for risks.

Enhanced Due Diligence (EDD) is part of the KYC process and reviews potential business partners and customers in depth for risks. EDD can assist if an increased risk has been identified during a KYC check or if the customer is carrying out risky transactions that suggest money laundering, fraud, tax evasion or terrorist financing. 

What is the difference between KYC and Enhanced Due Diligence (EDD)? 

In simple terms, an EDD process collects relevant and more detailed information on entities. A simple KYC check and CDD identification verification provides the basis for risk assessment. 

KYC policies consist of Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD). While CDD comprises the identification and ongoing monitoring of customers, EDD reports are used to collect and evaluate additional information on the entities that have received a high risk rating in the CDD/KYC checks. 

Thus it can be simplified said that an EDD process collects extended compliance relevant and more detailed information on entities. A simple KYC check and CDD identification verification within the framework of CDD provide the basis for risk assessment. 

How can I check a customer? 

Basically, customer verification starts with the simple collection of data and information about the entity. This can be a KYC check for a natural or legal person. 

Basically, customer verification starts with the simple collection of data and information about the entity. This can be a KYC check for a natural or legal person. FINMA recommends that banks start the identification process for their customers after the first KYC check. In addition, banks and regulated financial intermediaries should conduct an in-depth review of their business partners as part of an Enhanced Due Diligence (EDD) report. 

Would you like to simplify your compliance and make processes more automated and digital?

Learn directly from our customers how you can make your KYC processes automated, simple and even more secure.

Customers who use Digital KYC

How do I collect and review compliance relevant information about my customer? 

After you have collected the data about your customer, it is a matter of checking your customer for risk factors and therefore compliance relevant information. 

After you have collected the data about your customer, it is a matter of checking your customer for risk factors and therefore compliance relevant information.

Due to the expansion of the various KYC checklists around FATCA, AIA and MiFID controls, the manual KYC check is becoming more and more difficult. You will need to search through various sanctions lists, PEP lists, CRIME lists, and other sources of compliance-relevant data. That's why there are now more and more platforms that simplify your manual processes and controls with aggregated data sets and systematic KYC checks.

We collect and update compliance relevant data on a daily basis to give you easy access to an up-to-date database. Using the various KYC Toolbox functions, you can access these data records online and save the results for your customers (in the form of a KYC Report) in your KYC Toolbox or CRM. 

With which online compliance tools can I check my customers? 

With our KYC Toolbox, we offer you an intelligent ComplianceTech platform on which you can easily, quickly and securely check and identify your business partners and customer base online, as well as create detailed Enhanced Due Diligence (EDD) reports on your potential customers.  

With our KYC Toolbox, we offer you an intelligent ComplianceTech platform on which you can easily, quickly and securely check and identify your business partners and customer base online, as well as create detailed Enhanced Due Diligence (EDD) reports on your potential customers.  

The following due diligence analysis tools are available for handling your KYC processes: 


Toolbox Functions Overview

  • Check Customer (simple Customer Due Diligence check)
  • Scan (Batch Name Check for Ongoing Monitoring of Entities)
  • Verify Risks
  • BCP Check
  • Upload Service
  • Video Identification
  • Support Desk
  • EDD Assistant (for an Enhanced Due Diligence review)
  • Register Check
  • Onboarding Chatbot
  • Verification Chatbot
  • MRZ Check 

What are risk factors that are checked with a KYC check? 

In a KYC check, your entity is checked against the following criteria:

  • Mention or relationship with natural persons, legal entities or countries on sanctions lists of SECO, EU, OFAC, as well as other compliance-relevant lists
  • Mention or relationship with politically exposed persons on international and Swiss PEP lists
  • Mention or relationship with persons on CRIME lists  
    Reference to other compliance-relevant risks such as sector risk, country risk or CTRL-ORG 

Today, banks and regulated financial intermediaries, such as leasing companies or asset managers, must conduct such a simplified risk assessment, a Simplified Due Diligence (SDD) check, in order to be informed about possible involvement of natural or legal persons with money laundering or corruption or other criminal activities. 

How can I verify the identity of my customers with Digital KYC? 

With KYC solutions such as the KYC Toolbox, you can verify and verify the identity of your customers at various levels: 

With KYC solutions such as the KYC Toolbox, you can check and verify the identity of your customers at various levels:

  • Automatic initiation and invitation for the video identification process
  • Automated process for the upload of classic identification documents such as ID and passport
  • Invoices, official documents such as tax returns, foundation deeds, articles of association, powers of attorney or inheritance certificates 

What does KYC Spider deliver in an Enhanced Due Diligence Report (EDD Report)? 

Enhanced Due Diligence (EDD) stands in connection with Compliance for "Enhanced Due Diligence" and is the in-depth examination of new as well as existing customers/entities.

Enhanced Due Diligence (EDD) stands in connection with Compliance for "Enhanced Due Diligence" and is the in-depth examination of new as well as existing customers/entities. With the KYC Toolbox EDD Report, you can check whether your customers are connected to drugs, military, weapons, financial crime, corruption or tax fraud, environmental crime, organized crime, radicalism or terrorism, legal or criminal proceedings. 

How to create an Enhanced Due Diligence Report with the KYC Toolbox

Which sources are used for the KYC checks and Enhanced Due Diligence Reports (EDD Reports)? 

At KYC Spider, we use our own PEP and Sanctions database (KYC Records) to verify your customer data, as well as our own ...

At KYC Spider, we use our own PEP and Sanctions database (KYC Records), as well as data from the Swiss Official Gazette of Commerce (SHAB), OpenCorporates and various freely available online media to check your customer data.  

Which sources are used for the KYC Records? 

The KYC Records database is continuously updated and accesses public compliance relevant lists and data on sanctions lists and terror lists, PEP (politically exposed persons) lists and additional compliance relevant information (CRIME).  

The KYC Records database is continuously updated and accesses public compliance relevant lists and data on sanctions lists and terror lists, PEP (politically exposed persons) lists and additional compliance relevant information (CRIME).  

Which sanction lists are covered by the KYC Toolbox? 

In the following overview you can see which international organizations we have sanction, terror, CRIME and embargo lists from in our KYC Records database.

In the following overview you can see from which international organizations we have sanction, terror, CRIME and embargo lists in our KYC Records database and which countries are affected:   

Download information about KYC Records Data

What is a KYC Record? 

A KYC record is a profile of an entity, which is created in our database "the KYC records".

A KYC record is a profile of an entity that is created in our database - the so-called KYC records. Such a profile may contain the following elements:  

Data of a natural person

  • Gender
  • Name/Surname
  • Date of birth
  • Place of birth
  • Date of death
  • Citizenship
  • Resident Address
  • Images/Photos
  • Identification
  • Additional information
  • Collection
  • Role 

Data of a legal person

  • Name of the organisation
  • Date of incorporation
  • Place of incorporation
  • Closure date
  • Head office
  • Address
  • Images/Photos
  • Identification
  • Additional information
  • Collection  

How can I ensure that all data has been captured correctly by the customer onboarding? 

Onboarding for new customers in the financial sector is usually a standardized process, but it requires a lot of manual work and often also entails a high potential for errors and delays.  

Onboarding for new customers in the financial sector is usually a standardized process, but it requires a lot of manual work and often also entails a high potential for errors and delays.  

Automate your onboarding with our KYC Onboarding Chatbot. We process the data automatically and integrate it seamlessly into your KYC documentation. Your compliance forms can be generated automatically with one click, based on the data from onboarding. By default, the VQF forms are stored in the KYC Toolbox.

Details about the onboarding process with the chatbot can be found in our KYC  handbook

Your advantages of the intelligent onboarding chatbots are obvious: 

  • Customisable chatbot that asks all the legally relevant questions you need, making incomplete forms a thing of the past.
  • Quick and easy data transfer to your toolbox (KYC File). 

Who is a politically exposed person (PEP) and how do I check my customers for their PEP status? 

A PEP is a politically exposed person who exercises or has exercised a public function.

A PEP is a politically exposed person who exercises or has exercised a public function. It is recommended to prepare an Enhanced Due Diligence Report as PEPs represent a higher risk business party with regard to corruption, embezzlement and bribery than if no PEP categorisation is available. 

Check business partners for PEP status and extended risk factors with the KYC  Spider Enhanced Due Diligence Assistant

What advantages does Digital KYC offer me? 

Digital KYC offers you a simple, fast and secure business partner verification solution.

Digital KYC offers you a simple, fast and secure business partner verification solution. You benefit above all from this: 

  • Optimisation and automation of your due diligence processes 

With the Toolbox functions, you can automate a large part of your KYC processes and handle them online. 

  • Access to daily updated compliance relevant data from all over the world 

You can rely on our current data records to check your customers. We continuously collect and update our data for you from national and international sources. 

  • Simple, fast and individual use 

The KYC Toolbox is easy to use and individually usable. This way you can use the KYC functions you need and benefit from our intelligent chatbot, which we can adapt to your compliance forms and processes. 

  • Secure data location in Switzerland with high data protection standards

We store data on a server located in Switzerland, which meets the high security requirements of banks and financial intermediaries for data protection. 

 

 

KYC Spider is not a financial intermediary and not subject to the requirements of the AMLA. KYC Spider has developed an information platform to support financial intermediaries in fulfilling their due diligence obligations. KYC Spider is a technical service provider for data and document management.

KYC Spider will not provide any legal, regulatory, economic, financial, tax related, organizational, technical or other advice to the client.

WOULD YOU LIKE TO LEARN MORE ABOUT OUR KYC 4.0 TOOLBOX?

Find out in our Toolbox Handbook how you can check your customers or suppliers standardized and fast.

Download KYC Toolbox handbook

Address

KYC Spider AG
Gubelstrasse 11
CH-6300 Zug