How to keep your company safe with a KYC checklist

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đź“… Last update: July 2, 2021

If you work for or represent any financial institution, one of the first things you should ask yourself is whether or not you really know your customers. Yes, you may have chatted on the phone before or grabbed a quick coffee together in the past but how can you ensure that they’re being truthful about their identity?

Illegal practices such as money laundering and fraud occur on a regular basis all over the world. As you know, these offenses come with hefty punishments for both the perpetrator and the organisation with which they carried out the crime. Being unaware of the offender’s activities unfortunately does not make you immune to penalties, fines and, of course, reputational damage.

A Know Your Customer (KYC) checklist is the solution to all of your problems. By sending a KYC checklist to each of your customers at the start of your professional relationship, you can minimise any risks and keep your company safe. 

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How to keep your company safe with a KYC checklist

What information should I request in a KYC checklist? 

Your KYC checklist should provide you with everything you need to be able to confirm a customer’s identity, learn more about the legitimacy of their financial activities, figure out the source of their money and their potential risk to your organisation. 

Here are 25 of the most vital pieces of information and documentation to think about when creating your KYC checklist. 

Basic Company Information

These elements will provide you with the essentials regarding the company and their contact details.

  1. Company Name
  1. Company Address
  1. Company Contact Number
  1. Company Email Address
  1. VAT/GST Number
  1. What type of entity does your business categorise itself as?

Primary Company Contact Information

This information is to be completed by the person who will serve as your direct point of contact within the company. 

  1. Full Name
  1. Address
  1. Mobile Number
  1. Email Address
  1. VAT/Tax File/IRD Number
How to keep your company safe with a KYC checklist

Company Director Contact Information

The same information from the previous section is required from the Company Director, as he/she may need to be contacted at any point during the process.

  1. Full Name
  1. Address
  1. Mobile Number
  1. Email Address
  1. VAT/Tax File/IRD Number

Company Bank Information

Here, you’ll be able to collect the necessary company bank details.

  1. Bank Name
  1. Bank Branch Address
  1. Account Number
  1. IBAN/Swift Code

Initial Required Documentation

These forms of proof required from the customer will confirm their information thus far and provide additional security. 

  1. Certificate of Incorporation (for Companies, LLP, Trusts)
  1. Document displaying GST/company tax number
  1. Confirmation of company address 
  1. Scans of valid forms of ID of Primary Contact and Director
  1. Documents displaying VAT/Tax File/IRD Numbers of Primary Contact and Director
How to keep your company safe with a KYC checklist

Why should I create my KYC checklist digitally?

A multitude of organisations have begun switching from paper KYC checklists to electronic ones, and for good reason. 

It’s faster  

Having to undergo both the initial onboarding process and the KYC verification process could mean that customers are left waiting for long periods of time before everything can get started. 

As far as customer experience is concerned, this is not ideal and can leave customers feeling frustrated and disappointed that they don’t seem to be a priority. This type of situation could even drive them to go with another service provider instead.

Keeping everything digital will save time for both parties and allow the professional relationship to begin promptly and positively. 

It’s easier for customers

Receiving a KYC checklist in the mail, filling it out and either having to mail it back or travel to the company headquarters to deliver it is an absolute burder for any customer. 

Convenience is key to keeping your customers satisfied. A digital experience will help keep everything running smoothly from start to finish.

It’s more efficient 

In the long run, running your KYC process online is a lot more cost effective.

You should be paying your highly-skilled employees to do the things that they’re best at, which doesn’t include spending hours collecting information from your customers. 

What platform should I use to create my KYC checklist?

There are more tools available for basic form creation than you can shake a stick at, however, few of them are suitable for KYC checklists, as they may present too many restrictions. 

We recognise that scouring the internet for solutions is a pure waste of time, which is why we’ve done exactly that on your behalf and have come up with a couple of ideas that might be of use. 

Google Forms  

Google forms offers a basic solution to your checklist needs. You can create questionnaires and surveys with standardized fields that your clients can then access via a link and record their responses.

However, Google Forms and similar tools are not for those with more complex requirements, as there are quite a few limitations. The simplistic look and feel is reflected in the versatility of the product, giving you very few field type options and weak conditional logic.

Google Forms also does not notify you when you’ve received a submission, meaning you’ll have to keep checking back to see if and when your clients have responded. Going back and forth like that just creates an extra source of inconvenience that, quite frankly, you don’t need. In addition to this, your client is also required to have a Google account just to fill out your form, which can present serious issues for those using Outlook, Yahoo and other alternatives. 

Content Snare 

When it comes to creating your KYC checklist, Content Snare can help you gather exactly what you’re looking for in a fraction of the time it would normally take.

There’s no need to train or practice when you first begin using the software; simply sign up for a free trial and you can get going immediately. The same applies to your clients, as there’s absolutely no learning curve and a simple UI that even the most technically-challenged users can understand.

Both yourself and your clients receive automatic reminders and notifications throughout the process, ensuring everyone’s in the loop regarding any progress made and what’s still to be done. 

As a KYC checklist may contain sensitive data, security is an important factor to take into consideration when selecting your content collection tool. Content Snare adheres to industry security standards including encryption, authentication and attack protection, making it a safe space for your clients to provide their details. 

How to keep your company safe with a KYC checklist

We hope this post can serve as a guideline or inspiration for your next KYC checklist. 

Anything else you think we could include? Let us know in the comments below!

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Content Snare is here to help you know exactly who you’re working with. Sign up to access our KYC checklist. It’s ready when you are.

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James Rose

James is the co-founder of Content Snare and Aktura Technology. Once a web designer, his new priority is to help web designers and developers regain their lives, work less and get better clients.

He does this by writing helpful posts, building software and working with web designers to deliver the complex web development that they don't normally handle.

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