4 Steps for Effective KYC and KYB Process – Compliance (Infographic)

KYC/KYB

Know Your Customer (KYC) and Know Your Business (KYB) are two fundamental aspects in today’s business. It is important to stay compliant and for your platform to provide a verification service for all customers. Visually see how, in only 4 steps, our identity verification service works for KYC and KYB compliance. 

For a full article on KYC and KYB, check out “4 Step Process for KYC/KYB – Using Electronic Identity Verification

Additionally, contact helen.lambrou@cedar-rose.com directly for more information on identity verification or visit our identity verification page here.

4 Step Process for KYC/KYB – Using Electronic Identity Verification

KYC-KYB

Know Your Customer (KYC) or Know Your Business (KYB) is the concept of identifying an individual, for KYC, or a business, for KYB, before entering a business relationship. The ability to verify the identity of a person or a company prior to any business arrangements or customer on-boarding can help you mitigate risks. KYC is often tied closely with Anti-Money Laundering (AML), you verify and confirm the identity of an individual or business in order to ensure a business relationship is not misused. One of the most efficient and effective tools on today’s market, to verify identity and to ensure compliance, is Electronic Identity Verification (eIDV). It is important to understand the specifications of eIDV and to recognise how it may be used to help with KYC and KYB procedures and protocols.

What is Electronic Identity Verification?

Electronic Identity Verification, or eIDV, is the process of using digital methods for standard and comprehensive KYC and KYB compliance checks. Private companies are increasingly using eIDV services to instantly confirm the identity of an individual or an entity, such as a company. Identity is confirmed via an instant cross-reference with a database, providing match or no match results. So how does eIDV help?

Electronic Identity Verification takes into consideration a person’s name, address, ID and other factors (depending on the country of origin), standard information that users input when creating accounts for forex, online gaming, for fintech companies, e-commerce sites and more. With the aforementioned information, databases are meticulously and, instantly, scanned until a result is found, either a match, and thus, a verification, or a no match, and thus, a non-verification. The user would then be able to proceed to create the account, or not, depending on the result.

The Importance of Identity Verification

Using a quality and trusted eIDV service to confirm identities will enhance your on-boarding procedures whilst staying compliant and mitigating risks. Naturally, consumers are unaware and unconcerned with business policy, data protection and regulatory pressures faced by businesses; they expect a quick and easy service when conducting business online. Using eIDV, your customers get an enhanced service whilst your company adheres to compliance and regulatory rules. Keeping your company compliant with identity verification will bolster trust and transparency for your company.

“Organizations of all types rely on identity for compliance reasons, to help mitigate the risk of fraud, and to build trust and safety of their services. With better identity frameworks, these organizations can lower costs, lower risk, improve their ability to expand into new markets, and better build trust with customers, employees, suppliers, third-parties, and all their connections.” – Trulioo

Moreover, reputational consequences are, arguably, at an all-time high, with the increasing importance of online media and news, it is important to have a strong and trusted reputation. Without indulging in proper compliance protocols your company’s reputation can be majorly affected, which may deter new business potentials. Data is another factor that has massively grown in importance over the last decade, and making sure data is properly handled and verified is an important role that each company must take part in, without it, you can lose all credibility and trust from clients, investors and more. Therefore, we must ask, how does the KYC/KYB process work?

Identity Verification Process for KYC and KYB

1)      Connect to a Database Provider

First and foremost, before you can even begin to verify data, you need to have access to a system, to a database, that has already collated and cleaned the data, ready to be used. However, you also need to know what type of data you are looking for. For example, at Cedar Rose, we specialise in the Middle East, Romania and Russia, we have quality data on individuals and companies for companies to use our database and perform identity verification checks. Connecting to our database can also be done via API, directly from our system to yours. The data has been translated and is available for checking in either native (eg; Arabic, Cyrillic) and Romanised characters.

2)      User-Side Input

Whether you are an e-commerce company, forex, gaming or more, your users will have to input data at some point of your process that will then need to be verified. Such data can be, first name, last name, address, identification data and so on, depending on the country in question.

3)      Identification Data Checked

The inputted data will then be checked across the database that you’ve connected through via API. Depending on the data inputted, the check will be for either KYC or KYB. Cedar Rose holds a database of over 160 million individuals and over 12 million companies; this data is instantly checked through eIDV.

4)      Instant Verification Results

The final step of the identity verification process is the result that is returned. If the inputted data was found in the database, then it is a ‘match’, and therefore you have verified the legitimacy of the individual or company. However, if it is a ‘no match’, then the individual or company has not been verified. The eIDV service returns one of these two results, for accuracy and speed. The user would then be able to proceed or not, depending on the result.

Cedar Rose – Electronic Identity Verification

Cedar Rose has been compiling data for over 23 years, from the hardest of regions, such as the Middle East where, in some cases, data is not even digitalised yet at the official sources. We have collected and cleaned this data and presented it in a standardised, easy to use and easy to access database for our clients. We offer vast data on individuals in the Middle East, Romania and Russia and data on companies across the MENA region. We source our data from a variety of places such as: official records, local records, public records and credit rating agencies.  Our databases are easily accessed via our API and are suited for international clientele, scalability, and for instant results. If you have a large influx of entities to be verified, our scalable database can handle your requests. We offer a service that can provide a smooth, efficient and most importantly compliant on-boarding process. If you’d like to know more about how we can help, contact Hannah.king@cedar-rose.com or check out https://www.cedar-rose.com/solutions/eidv for more information.

 

Written By Jack Evangelides, Marketing Executive

 

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*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

Employee Spotlight – Nicole Konstantinou

Cedar Rose - Nicole

Q: What position do you hold in the company and how long have you worked for Cedar Rose?
A: I have been working for Cedar Rose for almost 9 years, I started as a Data Entry Typist, I also assisted with interviews and research for the credit reporting and due diligence teams – I speak Arabic, French and Greek as well as English.
After becoming a Client Services Assistant, I was promoted to Client Services Team Leader a couple of years ago and I was recently given the opportunity to work and assist in the Sales Department too.

Q: What do you love about your job?
A:  I love that I’m encouraged to learn new things and be innovative. My directors and supervisors support me, respect my experience and the expertise I bring. Adding to that, there is always something to laugh about every day, laughing is good for the soul and the psychological wellbeing.

Q: When you hang your hat on Monday morning, what does your day consist of?
A: I keep wearing my smile and always believe something wonderful is about to happen 🙂

Q: What drives you to be successful in the workplace?
A:   You need to love what you are doing in order to be successful. The continuous support I receive from my directors and the good relationship I have with all my colleagues encourages me. The company genuinely cares about all staff who work hard and aim to achieve great results.

Q: What achievements are you most proud of in work?
A: I’m proud of the great relationships I have built with our clients in so many countries around the world.

Q: What achievements are you most proud of outside of work?
A: I gave few presentations at an event and got over public speaking worries which boosted my self-confidence.
I am always ready and willing to help others; I participate in volunteer work and raising money for charities.

Q: What do you love to do outside of work?
A: I love the sea, therefore I like swimming, diving, fishing and sailing. I also cycle and jog almost every day. One of my hobbies is smoking shisha (narghileh or hubble bubble) and listening to music while cooking.
Additionally, I like to travel a lot and discover new cultures.

Stay current with Cedar Rose’s newsroom for the latest news and trends.

Written By Jack Evangelides

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

 

 

Cedar Rose CEO & Co-Founder Antoun Massaad – An Exclusive Interview

Cedar Rose Interview

Here at Cedar Rose we’d like you to get to know the people behind the business, who we are as professionals inside the office, and people outside the workplace. Who best to get things started with than an exclusive interview with co-founder and CEO Antoun Massaad.

Q: What position do you hold in the company and how long have you worked for Cedar Rose?

A:  [Antoun]    I’m the Chief Executive Officer. I founded Cedar Rose in 1997.

Q: What do you love about your job?

A: [Antoun]  Leading a company which is a leader in its domain. For the past 21 years the name Cedar Rose has been synonymous with the best quality data and service available for clients requiring research and investigation services. That drives me to maintain our reputation for excellence and stay ahead of the game.

Q: When you hang your hat on Monday morning, what does your day consist of?

A:  [Antoun]    My Monday morning is not different from any other day of the week to be honest, except that I am perhaps more excited than other times. The reason I say that is because I continuously monitor the business responsibilities and tasks I am looking after and that include IT matters and security, client relationships, new client sales, identity verification enquiries and matters, data strategy, legal matters and so on. So I am checking and replying to emails, addressing issues instantly and as soon as possible rather than leaving matters till I come to the office to deal with. As many business leaders and individuals in today’s world do, I carry a portable device with me everywhere I go, enabling me to answer emails and reply to colleagues, clients or suppliers messages including emails and instant messages anytime from anywhere. With clients all around the world, it could be a 24/7 job so I try to take regular breaks too, and every day for me starts with a good workout in the gym.

Q: What drives you to be successful in the workplace?

A:   [Antoun]   My passion for Cedar Rose to be the best of the best and to continuously strive for excellence. I am always looking ahead and planning for the future and therefore spend a lot of time keeping up with the industry news and trends. One of the keys to success for our company in my opinion is the fact that we continuously look for ways and means we can deploy and make best use of technology in our business, to improve productivity, reduce costs, speed up processes, reduce waste and provide next generation solutions which others may not even be aware of yet.

Q: What achievements are you most proud of in work?

A:  [Antoun]   Employing people and providing opportunities for them which they may otherwise not have. Today at Cedar Rose we are employing people who are highly qualified, smart, intelligent, really dedicated and hard working. To be able to provide employment opportunities to such people (I call them diamonds) is what I am personally most proud of.

Q: What achievements are you most proud of outside of work?

A: [Antoun]    The man I have grown to be, the family I have and what I have been able to provide for them, the society I am a member of and the contribution I make towards others. I am blessed and lucky to live in one of the most beautiful parts of the world. Getting to where I am today has in no way been an easy ride but I am very proud of what I have been able to achieve having fled Lebanon, my birth country, at the age of 18 with very little to my name.

Q: What do you love to do outside of work?

A:  [Antoun]:  I like to keep fit, go fishing, get on my boat and cruise on the Mediterranean Sea. I love socialising and travelling overseas exploring other countries, cultures and cuisines. Since the age of 18 I started to travel overseas and since then I have not stopped and this will remain one of my passions in life. I have travelled around the world twice now, once at the age of 23 with my wife and once at the age of 36 with my wife and my two sons who at the time were twelve and thirteen. Nowadays I travel often to the west and the east and get to savour the richness of the cultures and differences they offer.

 

Stay current with our newsroom for the latest news and trends.

 

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

 

 

PSD2 (Part 2): Enhanced ID Verification – What You Need to Know

With a deadline of 2019, compliance with PSD2 from Payment Service Providers (PSPs) is right around the corner. Having to adhere to certain Regulatory Technical Standards (RTS), the traditional customer – merchant relationship is drastically changing. From banks offering their APIs to Third-Party Providers (TPPs) to enhance security measures in the forms of fingerprint scans or even facial recognition when placing transactions. The overriding goal is to simply eradicate, once and for all, any and all fraudulent activities. PSD2 is innovation at its finest and it has the flexibility and responsiveness to adapt to ever-changing circumstances. Electronic ID Verification (EIDV) offers an extra and highly necessary layer of security for e-commerce in order to stamp out fraud. Payment regulators understand and prioritise customer safety when making transactions, so how can EIDV provide this desired security?

Enhanced Levels of Verification – The Digital Defender, at Your Service

The Cedar Rose electronic identity verification services can satisfy the markets needs for enhanced securities in the world of payments; and has the potential to ensure the utmost in security measures are upheld. Whether you’re placing high value transactions or buying a pair of shoes, electronic identity verification or EIDV, can safeguard your data and ensure a smooth trade.

The potential for additional levels of ID verification is, potentially, unlimited. For example, a relatively new digital identity verification platform envisages newer means of security for e-commerce. The platform – Jumio, attempts to match IDs of individuals with an image of the user, in real time. The selfie nature of Jumio essentially ‘scares’ off fraudsters, because of their, would be, unwillingness to want to release a photo whereby a level of security requests a facial verification in the form of a self made photo. Furthermore, Jumio complies with mandates and directives such as: KYC, AML, GDPR and PSD2. This service platform leads the way for other innovative ideas to enhance security and minimise fraudulent activity.

Here at Cedar Rose, we offer EIDV to discover the validity of an individual, in real time. We use public records to match data across ‘Source A’ with stored data from ‘Source B’, data in the form of ID cards, driving licenses, birth certificates and more. If the information correlates from the sources we can then confirm ones identity, however, if there isn’t a match, we can then conclude that there has been an attempt of fraud. Similar to the Jumio platform, Cedar Rose can kick out fraudulent activities and ensure the safety and security of their clients. More specifically, there are two routes in which you can use EIDV.

Firstly, by using a meKYC check that provides access, via API for instant verification data, for both people and businesses. Or, secondly, you can perform a youIDV check that allows you to focus on people alone, also via our robust identity verification API tool.

 

PSD2 – The Opportunist

The future of e-commerce is constantly developing and evolving. PSD2 provides opportunities for innovative ideas that can change the traditional format of online transactions, provide in-depth security measures and, conclusively, eliminate fraud. With the future of technologies constantly changing, PSD2 delivers an adaptable directive that parallels and works with new technologies (such as EIDV). The evolution of e-commerce is at our doorstep. Banks will now have to offer their APIs to TPPs and introduce a contingency plan in the case of their APIs failing. The banks would have to then give TPPs an alternative way of accessing their customer’s data, thus, providing them with end users’ login credentials (even though they are not technically the end user). Excitingly, the deadline for the compliance with PSD2 is estimated to be September 2019. Don’t miss out on Cedar Rose’s latest articles as we will be bringing you updates on PSD2 developments, see here.

Written By Jack Evangelides, Marketing Intern

Sourced Image: Pixabay

 

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

PSD2 (Part 1): The Revolution of E-Commerce

Stay ahead of the game with the pending commencement of PSD2; understand its unlimited capabilities and the innovation behind this new revolutionary technology. An e-commerce experience that provides: efficiency, transparency, speed and the fundamental and game changing feature, enhanced security. PSD2 is paving the way for payments innovation.

What is PSD2?

PSD2 is, simply, the second Payment Services Directive, but what does this mean? Affecting e-commerce, PSD2 outlines new potentials when making online payments between customer and merchant (for example, eBay). It decentralises the monopoly on user data from banks and allows merchants to retrieve account data (in the form of a token) from your bank – with your permission of course. PSD2 is offering enhanced security in the form of identity checks when participating in online payments and, furthermore, it is attempting to prohibit the use of non-transparent pricing methods for international payments. PSD2 “serves as an onramp for future e-digital banking initiatives,” (Andreasyan, 2017). This innovation may be the future of e-commerce with great potentials to be reached.

Token and Tokenization

The process of tokenization is an in-depth security measure to make sure that your online payments are secure, and, more importantly, a countermeasure to any fraudulent activity. A token is an algorithmically generated and encrypted code that ‘replaces’ your sensitive data. This token is then distributed through the internet and other networks needed to process a payment without exposing any details. All sensitive data from a payment is stored in a secure token vault, the Fort Knox of e-commerce. Tokenization aims to prevent the duplication of consumers banking details, fighting online and all digital breaches.

When is it Released and What Can We Offer?

PSD2 was constructed by countries of the European Union and it has been developing since 2015, but is set to be finally implemented by 2018/2019. Brace yourselves for the inevitable revolution of e-commerce.
Here at Cedar Rose we work with, potentially, the largest and most comprehensive database containing a copious amount of sensitive data. Henceforward, security and privacy are at the core of our ethos. Cedar Rose offers Electronic Identity Verification (EIDV) providing access, via API, for instant (in real-time) and precise identity verification data on individuals and companies. This tool can help mitigate risks such as:

  1. Identity TheftPSD2
  2. Negative Verification
  3. Social Identity Claims
  4. Fraudulent Activity

We are proudly, the first identity verification service for the Middle East and Russia.

Contact us at order@cedar-rose.com for further information in regards to the second Payment Services Directive or Electronic Identity Verification and any other enquiries that you may have.

Stay current with the latest news through our esteemed newsroom.

Written By Jack Evangelides, Marketing Intern

Bibliography

Andreasyan, T. (2017, November 20). Fiorano launches PSD2 solution for banks. Retrieved September 17, 2018, from Banking Tech: https://www.bankingtech.com/2017/11/fiorano-launches-psd2-solution-for-banks/

Sourced Image: Pixabay

Sourced Image: Pixabay

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***