By: Sara Santajuana, Marketing Manager in Addalia

In previous posts we have talked about what compliance, KYC (Know Your Customer) and digital client onboarding is, as well as how these three concepts relate and how technology can make this process more agile. On this occasion we are going to focus on who is affected by KYC.

Who is affected by KYC

Even though financial institutions are the ones that have been adapting their processes to the KYC standard required by the laws for the prevention of money laundering and the funding of terrorism for the longest, the list of obliged subjects is much more extensive. You may find it below:

  • Credit institutions (ICO, Banks, Savings Banks, Cooperative Banks, Financial Institutions, Electronic Money Institutions).
  • Insurance companies and insurance agents authorised to operate in the life line or other services related to investments.
  • Investment service companies.
  • Management  companies of  collective investment  institutions and investment institutions.
  • Management companies of pension funds.
  • Management companies of venture capital institutions and venture capital companies.
  • Mutual guarantee societies.
  • Payment institutions.
  • People who professionally perform currency exchange activities.
  • Postal services with respect to money orders or transfers.
  • Financial intermediaries in granting loans  or credits.
  • Real estate promotors and those who professionally perform agency activities during the buying and selling of properties.
  • Accounting auditors, external auditors or tax advisors.
  • Notaries and property, commercial and real estate registrars.
  • Lawyers, attorneys or other independent professionals who participate in the creation, completion or assessment for operations related to real estate, funds, values, current accounts, savings accounts, company management or trusts, societies or similar structures.
  • People who professionally provide the following services to third parties: establish societies or other legal entities; carry out management or secretary services for a company, partner in an association; provide a registered office or a commercial, postal or administrative address; carry out trustee operations; or carry out associates functions on another person’s behalf.
  • Casinos.
  • People who professionally trade jewels, stones or precious metals.
  • People who professionally trade art objects or antiques.
  • People who professionally carry out actives in the procurement of goods with a price restitution offer.
  • People who conduct activities of deposit, custody or professional transporting of funds or payment methods.
  • People responsible for the payment operations for prizes, management, exploitation and commercialization of lotteries or other games of chance.
  • People who conduct payment method movements for mandatory statements.
  • People who professionally trade with goods for an amount higher than 15.000 €
  • Foundations and associations.
  • Managers of payment systems and compensation and settlement value and derivative financial products, as well as managers of credits or debit cards emitted by other companies.

Technologies to validate documents

In this way, all these companies need to have reliable registers that confirm who their clients are and what the nature of their commercial relations and income is. To achieve this, companies confront the challenge of maximizing the conversion rate and minimizing the financial and criminal risks on their clients digital onboarding.

Technologies to validate documents

Technologies used to automatically validate documents and identities, like Addalia’s tools, allow us to capture and automatically process the information, providing in a matter of seconds the result of the automatic validations, carried out online and from any device. This functionality is conducted in a transparent way (via APIs and web services) on the client acquisition interfaces, which will take informed and secure decisions in seconds, whether to confirm the operations or to alert the client or the company of the risks and breaches detected.

Iddiligence, Validation of data, documents and identity for your digital customers.

These validations, normally carried out online during the digital client onboarding, can also be conducted afterwards in automated back office processes to audit the quality of the data available in the companies register. In this way, comprehensive reports are obtained rapidly and automatically, providing information about the level of:

    1. Existence of data: Verify that the data and documents exist in the system.
    2. Completeness of the data: Verify that the information it contains is complete.
    3. Accuracy of the data: Verify that the information is accurate.
    4. Certainty of the data: Verify the certainty of the information (normally verifications against internal data or trusted third parties).

In this way, the regulatory compliance, which initially could be considered an operational burden and an obstacle when acquiring clients, with the use of the right technology can become a valuable information resource for the company and its clients, as well as an important support to improve the quality of the service the clients receive.



Our experts will be happy to answer your questions and inform you how to validate identities, data and documents, in seconds. Call us on +34 91 033 93 29 or fill out this form and we will contact you.