Are your compliance providers and platforms actually performing the required AML checks?
Are they transparent about what they are doing?

These questions are critical to ask because if your provider fails in its duties, the responsibility still falls on you. 

With Tranche 2 reforms on the horizon, smart businesses are preparing now so they avoid the risk of non-compliance through misunderstanding.

Clear and accurate information is the key to navigating compliance, and at Personr, we are bringing the confusing topics back to the basics.

Step one? Getting your onboarding process right.

Know Your Customer (KYC) is more than just a term. 

It is the process of verifying a client’s identity and assessing their risk to prevent illicit activity. 

This step is completed during the onboarding process, and without clarity on how you or your provider manages KYC, you increase the chance of regulatory breaches.

“KYC and being familiar with your customers’ typical financial transactions makes you aware of any unusual or suspicious activity and reduces the risk of your business or organisation being exploited for money laundering or terrorism financing purposes,” AUSTRAC explains.

AUSTRAC requires businesses to confirm a customer’s identity and be satisfied they are who they claim to be. This is done through:

• Document-based verification such as primary and secondary identity documents.
  
  
• Electronic verification by matching customer data against secure, independent databases, including the Document Verification Service (DVS).
  
  
• A risk-based combination of both methods.
  
  

Verification is only the first step. 

Businesses must also document the identification procedures used for each customer.

“The procedures you use must be based on the level of money laundering/terrorism financing risk that different customers pose,” AUSTRAC said.

A customer walks into a Melbourne bank to open a savings account.

1. Government-issued ID: Presents a valid passport or driver’s licence, which is verified using the DVS.
   
   
2. Proof of address: Provides a recent utility bill, rental agreement, or official letter.
   
   
3. Cross-checks: Details are matched against official databases such as the electoral roll or credit bureau. Digital verification may be used for online applications.
   
   
4. Record-keeping: Identity documents and verification results are stored securely for seven years.
   
   
5. Account activation: The account is opened only after successful verification. If verification fails, the application is declined until correct documents are provided.

Within our platform, KYC is referred to as “Individuals” and is designed to make compliance simple, secure and thorough.

Our platform can complete KYC checks in more than 50 countries.

• Data verification: Matches customer details with government, semi-government and commercial sources.
  
  
• ID document capture: Collects the correct documents every time with checks for authenticity and manipulation.
  
  
• Optical Character Recognition (OCR): Automatically extracts details from documents to reduce human error.
  
  
• Biometrics: Uses advanced facial recognition with liveness detection, deepfake checks and face-to-document matching.

Beyond KYC

Beyond KYC Personr offers a complete compliance package, including:

• Know Your Business (KYB) checks in more than 200 jurisdictions
  
  
• Verification of over 12,000 ID documents worldwide
  
  
• Global AML screening

When it comes to AML compliance, trust and transparency are essential. 

At Personr, we have built our reputation on both. 

We make sure our customers understand exactly what we do, how we do it, and why it matters.

Book a demo today.